“Our first task was to help Luxinnovation’s business developers develop relevant strategies to target priority sectors, mainly the automotive industry, cleantech and the digital economy,” says Sara Bouchon, who heads the market intelligence unit. “In order to do this, we developed two specific services: Market Studies and Market & Technology Watch.”
Identifying potential through market intelligence
A market study includes an in-depth analysis of the main technological developments expected within the targeted sector over the next 5-10 years. The aim is to identify sub-sectors with strong development potential for which Luxembourg would be an attractive location. The study also analyses which countries are already at the forefront in the selected fields to determine the most relevant geographical region for prospection activities. Once the study has been concluded, Dr Bouchon and her team continuously keep the business developers updated through their on-going market and technology watch.
The next step is to work on how to make contacts with individual companies more proactive and better targeted. “Luxinnovation, the House of Entrepreneurship and the Ministry of the Economy are often contacted by firms that want to know more about Luxembourg, but in addition to that we want to reach out to those that do not yet know what the country has to offer,” says Dr Bouchon, who underlines that the prospection efforts are being done in close collaboration with the Ministry. By analysing a multitude of sources and databases, her team can come up with lists of companies that focus on interesting technologies and have other relevant characteristics. “When speaking to previously unknown companies at large international events, there is always a risk of spending too much time on less relevant ones only to discover, for example, that they already have a foothold in a nearby European country and thus would not consider Luxembourg. Our lists help the business developers seek out firms that are of real interest. This makes their work far more effective,” Dr Bouchon points out.
When a relationship has been initiated, it is often useful to have more detailed information about the companies concerned. The market intelligence team develops company profiles that include key information such as ownership, financial health and recent news. According to Dr Bouchon, this service is often solicited by the international business support team: “It helps them ensure that the companies they work with are in good standing.”
Opening doors for Luxembourg companies
In addition to analysing foreign companies, the market intelligence unit also conducts sector mappings of Luxembourg’s own economic landscape. The aim is to identify international companies that are already present here but have the potential to upscale their activities in the country. Opening doors abroad for Luxembourg companies is also part of Luxinnovation’s Cluster Initiative activities. Dr Bouchon and her team develop country reports, often as part of the preparations of official Luxembourg missions abroad, to identify the most dynamic sectors in the country that will be visited and the potential trade opportunities for Luxembourg-based firms.
“Our main aim in 2017 was to set up standardised processes and methodologies for our work that will allow us to produce customised information quickly and efficiently to facilitate business development,” says Dr Bouchon. “I’m confident that we will see constantly increasing interest in Luxembourg as a business location over the coming years.”
Luxembourg offers interesting opportunities for investors in a range of key business sectors.
Luxinnovation contributes to the economic development of Luxembourg by fostering innovation, fuelling international growth and attracting foreign direct investment and is supported by: Ministry of the Economy, Ministry for Higher Education and Research, Luxembourg Chamber of Commerce, Luxembourg Chamber of Skilled Crafts and FEDIL – The Voice of Luxembourg’s Industry.