World experience of industrial parks creation for Kryvyi Rih

Creating a favorable investment climate through real investment, fixed capital renewal and restructuring of the financial and investment fields is the key to the formation of objective conditions for sustainable development of regional economy and its diversification, and an important competitive advantage for economic growth.

To stimulate investment for more than half a century, developed countries and developing ones use such mechanism as creation of industrial parks.

Since the beginning of the twentieth century, industrial business parks have been actively developed in the USA and Europe, close to the cities, transport junctions and port areas. Since the 1950s specialized innovative technology parks associated with the development of large universities began to appear. Since that time industrial parks with universal industrial and warehouse buildings have been spreading rapidly and play an important role in the process of technological production.

Today, every region and county in North America and Western Europe comprises tens of business parks located on the outskirts of major cities, along with transport junctions in designated areas zoned for industrial and warehouse use.

The first purposefully established industrial park historians consider to be Trafford Park in Manchester (UK). It was founded in 1896 by Ernst Hali having bought the first 10 hectares of land along the sea channel of Manchester, established engineering and transport infrastructure and begun renting out sites with access to utilities for industrial markets, and later selling them.

Henry Ford located his first car plant in Europe (founded by Ford Motor Company) at Tafford park in 1910. In addition to English companies, more than 300 U.S. companies had their manufacturing or office spaces in that area by 1920. This park still exists. Now its management is carried out by the corporation of local territorial development.

In the last decade there has been a tendency of gravity of industrial parks and technology centers to concentration of qualified personnel, bringing them closer to the centers of education, commerce, culture and entertainment. In this regard, increasing interest of entrepreneurs in creation of new industrial and technology parks at the old industrial areas in big cities was noticed.

The concepts of Industrial Park and Technology Park are not the same. Establishment of industrial parks is primarily focused on industrial companies requiring modern warehouses and manufacturing facilities. This enables enterprises to increase their competitiveness, using a synergistic and positive scale effects in terms of joint use of capital-intensive infrastructure. Technology park is a form of territorial integration of education, research and production in the form of scientific organizations, design bureaus, schools, industrial plants or their units.

In the area of technology parks industrial and research organizations cooperate effectively. Enterprises located in industrial parks are usually connected by technological links of added value formation and joint use of sites and services provided by the managing company.

Kryvyi Rih is a big industrial center of Ukraine, which is growing fast and has a strong industrial and innovative capacity. The local authorities are interested in creating a favorable investment climate in the region and supports the implementation of relevant projects, and the gradual development of regional industry and increase in the investment attractiveness has formed a need in working with investors at a new quality level.

Obviously, the most significant advantage for investor joining is concentration of production, warehouses, offices, necessary infrastructure in one area, leading in its turn to substantial savings by reducing transaction costs. There are no such land parcels that would meet most specified criteria, and they cannot emerge spontaneously.

Thus, it is necessary to conduct purposeful and systematic activities to create new opportunities for placing production facilities on the territory of the Kryvyi Rih region, namely the creation of industrial parks.

Yasko Ilyana

Manager of the program

International Activities