Mazovia is one of the fastest developing Polish regions; it is a region with the biggest market, very high engagement with investors and a very well developed economic and social infrastructure, as well as ever improving access to transport. The region’s development can best be seen through the dynamics of GDP changes, the level of which per resident is above 150% of the national average and about 72% of the EU average. Overall, the Mazovia Province produces more than one fifth of the national GDP.



A characteristic feature of the Mazovian economy is fast development of modern innovative sectors, such as services: financial and insurance, telecommunications, printing and publishing, IT and industries such as pharmaceutical, electronics, precision and optical, and production of consumer electrical equipment. Investment in industrial innovation in the region is growing faster than in the rest of the country, where about one third of the nation’s research and development units and people working in them are concentrated. And where larger financial outlays for R&D sphere are made than in the rest of the country.



Investments



The Mazovia Provice is an attractive region for investors. It has the largest concentration of businesses in the country. At the end of 2007, there were 627,300 enterprises or 17% of all businesses in Poland. Well prepared investment offers have a huge bearing on the economic development of Mazovia, as well attracting local and foreign investors. On offer are large investment areas, such as in Przasnysz-Sieraków (about 300 ha) and in Nowe Miasto on the Pilica (about 400 ha), as well as many smaller areas suitable for investment. Large areas for investment available in Mazovia are “the pick of the crop” in Poland. Their attractiveness lies in the geography of the region, as generally these are flat lowland areas. It is also important that they have legal clearances, which is essential for future investors and the entire investment process. Additionally, the investment areas have an ever improving level of technical infrastructure thanks to the initiatives of the local authorities and active use of EU funds, including from the Mazovia Province Regional Operational Programme. Hence, Mazovia provides the opportunity to invest in large strategic projects not only for the region, but also for the whole nation, as well as smaller investment projects.



Investment sites that make Mazovia stand out, include also:



* Płock Industrial and Technological Park areas – where PKN ORLEN oil company is located, giving further opportunities for the development of petrochemical and chemical industries.
* areas west of Warsaw – especially Błonie and Teresin Communes. According to a report “Polish Warehouse Market for 1st six months of 2008” published by Colliers International Poland, warehouse centres concentrated around Błonie outside of Warsaw continue to be the biggest warehouse centres in Poland (nearly 400,000 m2 in one area). One can therefore say that Błonie is the Polish logistics capital.
* areas in Radom-Wośniki – where the city authorities plan to create an industrial park.



A major advantage of the investment opportunities in Mazovia is their strategic location – centre of Poland, close to transport routes, and most importantly in close proximity to the Polish capital, the country’s main administrative, cultural, service and business centre, as well as the Frederic Chopin Airport, the biggest airport in the country.



The knowledge about potential partners, as well as proximity to markets is becoming an ever more important element in providing investment opportunities. Mazovia is the biggest Polish region and the biggest market (more than 5 million consumers, 13.6% of the entire Polish population); it is a region where many companies have their headquarters, which can be potential partners or subcontractors for foreign investors.



However, the most important elements that attract investors are investment incentives and promotional activity. The main investment incentives employed by the region are:



* investment incentives in Special Economic Zones – mainly exemptions and tax concessions. There are 5 Special Economic Zones (SEZ) in the Mazovia area: Warmińsko-Mazurskie SEZ, Suwałki SEZ, Tarnobrzeg SEZ, Starachowice SEZ and Łódź SEZ. Tax concessions and well-prepared investment land – brownfields and greenfields, encourage investors to invest in the Zones. As a result of the amendment of the Act on 20 October 1994 pertaining to Special Economic Zones, and the increase of land covered by the SEZ privileges from 12,000 ha to 20,000 ha (by 8,000 ha), Mazovia self-government in agreement with Special Economic Zone managements is actively working towards adding new Mazovian areas to SEZ.
* favourable attitude by the local authorities to investors. Real estate tax concession applied by Commune authorities.
* accessibility to and use of EU Structural Funds, including to improve technical and social infrastructure in the region, as well as structural funds for the development of entrepreneurship.
* industrial and technological parks, which are a magnet for investors from specific sectors. Being conscious of the development of the petrochemical and chemical industries in the region, Self-government authorities helped to establish the Industrial and Technological Park in Płock.
* Warsaw’s potential – the use of Warsaw’s location and status to attract new investors.
* use of human resources – well qualified work force and scientific and academic resources.



According to the Polish Information and Foreign Investment Agency (PAIiIZ), there are currently 660 foreign companies in Mazovia, which have invested in Poland at least USD1 million. The characteristic feature of the location of companies with foreign capital in Mazovia Province is their concentration in direct proximity to Warsaw. Foreign investments are also located in other larger cities in the region, such as Radom, Płock and Siedlce.



The largest development in foreign investment in Mazovia Province can be seen in such sectors as: IT, electronics, automotive, chemical and biotechnology. Investor interest associated with the renewable energy sector has also been noted in the last several years. Further investment in future years is expected in the IT, electronics and automotive sectors, as well as an inflow of investment associated with the agricultural and food sector (due to Mazovia’s huge potential in this sector), renewable sources of energy, and most of all in innovative projects (Mazovia has the greatest level of innovation in the country).



Support companies



In order to increase the region’s economic competitiveness, the Mazovia Province self-government set up a company Agencja Rozwoju Mazowsza SA (Agency for Development of Mazovia) in 2005. It is a public trading company, where the Province’s self-government is the only shareholder. The agency prepares and puts into effect projects designed to develop the region’s entrepreneurship – it supports small and medium-sized companies through education and training, and provides organisational and administrative support. The Investor Service Centre within the Agency ensures effective investment procedures and actively cooperates with Mazovian companies. A wide network of contacts enables the Centre to be the go-between for companies in Poland and abroad (see www.armsa.pl).



To permanently improve companies’ innovation and competitive edge in the region and their economic effectiveness, other companies have also been set up, such as: Mazowiecki Fundusz Poręczeń Kredytowych (Mazovian Credit Guarantee Fund) and Mazowiecki Regionalny Fundusz Pożyczkowy (Mazovian Regional Loan Fund). The loan fund provides loans on attractive interest terms for people wanting to start a business or are operating in micro and small enterprises (see www.mrfp.pl). The aim of the credit fund is to provide assistance to enterprises in the SME segment to increase their access to external sources of financing their business. Start-up capital in 2003 of MFPK Sp z o.o. was PLN1,420,000, of which PLN1 million came from Mazovian Province self-government, and the remainder from other local governments. Currently, guarantee capital, which is made up of set up capital, European Union subsidies and earned profit stays at the PLN52 million level (see www.mfpk.com.pl).