Somewhere in Val D’Oise, France, there’s a gifted fashion designer whose styles could buck trends on this side of the Atlantic. Somewhere in Arlington, there’s an IT company whose software could streamline operations for government offices in Paris.
But bringing profitable business ideas to the international marketplace often takes more than talent and good ideas. A new international economic development project could help small and mid-sized companies make the transition to the international business community and, some experts believe, could help shape the global economy itself.
“We’re going to learn from each other, and we’re also going to prosper together,” said County Board chair Paul Ferguson, minutes before signing a charter making Arlington a founding partner in the World Cities Alliance, a joint venture linking economic development departments in five countries.
Arlington entered into the WCA Thursday, June 26, along with Berlin; Cardiff, Wales; the Val D’Oise-Paris region; and Zurich. Arlington represents the D.C.-region, along with Loudon, Montgomery and Howard Counties, and the District itself.
In development for nearly two years, the partnership was spurred on by Adam Wasserman, Director of Arlington Economic Development, and his staff. WCA offices in each region will provide investment advice and consulting services free of charge to small and mid-sized companies seeking to expand internationally. WCA staff will also manage an online business-to-business platform that will allow those companies to find and communicate with international companies that can help them grow. “Sit at home in Washington, gain access to opportunities in Paris,” Wasserman said.
In the next two years, Wasserman expects WCA to expand to between eight and 10 regions, drawn from every continent.
IT’S TOO EARLY to name specific local businesses that will benefit from WCA, Wasserman said, but the possibilities are nearly endless.
Government contractors produce software that, with few modifications, could work for governments in other nations. But mid-sized companies rarely know the ins-and-outs of government procurement overseas. Business to business communication through WCA could give local government contractors the connections they need to get their foot in the door.
In other words, with WCA, “It’s very easy to have a joint venture in another country,” said Yannick Paternotte, first vice president of the Val D’Oise County Council and Mayor of Sannois, France. Companies dealing in aerospace, IT and life science, as well as those capitalizing on Val D’Oise’s history, art and haute couture could see a major boom thanks to WCA, said Paternotte.
“We want them to have a correspondent everywhere in the world,” added Emmanuelle Desthieux, an economic development expert from Val D’Oise.
WCA COULD RESEMBLE the Star Alliance, said Bruce Ashby, senior vice president for US Airways, referring to the airline alliance that let the locally based airline expand its European operations. USAir had a loyal customer base on the East Coast but faced major limitations when trying to add international routes, he said; overhead was too high to let them purchase additional planes, and government regulations prevented buyouts of other airlines.
The only logical solution was to form a partnership, an alliance, with an airline that was already strong in Europe but wanted to grow in the States—in this case, Lufthansa.
“When we learn to work together and use each other’s strength, investment is lower,” and profits increase for both companies, said Ashby. Similarly, the WCA will allow strong regional companies to work together to become an international force.
“We’re specialists in our own markets,” said Wasserman, who hopes WCA will provide the framework to spread that expertise around.
IF WCA OPERATIONS are as successful as Wasserman expects, the local economy could see increased investment from companies in the partner regions, as well as seamless, efficient imports.
But WCA could have implications far beyond the partner regions. “Thirty years or so ago, the world economy was dominated by nation-states,” but that’s no longer the case, said Russell Goodway, Lord Mayor, Cardiff County Council, Wales. Wasserman agreed. “It’s not countries, it’s regions.”
But if those regions are to influence the global economy, they must interact efficiently, he said.
“Who you know often determines what you know,” said Ferguson.
Goodway agreed that WCA will spread business expertise throughout the partnership. “It is about collaboration,” he said. “It is about connections all over the world.”