Poland has over 100-year history of aviation and a long tradition of aviation industry for more than 80 years. Strong academic, scientific, and engineering centers are ones of key factors to the development of this sector. Increased international business cooperation in Poland and direct foreign investments contributed to its further development. There are over 120 aviation and aviation-related companies with annual sales of 800 million euro, and over 23 thousand employees in total operating in Poland in this sector. The majority of these are companies with foreign capital. Nowadays, Polish aviation industry has a rich export offer of advanced aviation products. Almost every passenger aircraft in the world is equipped with at least one part produced in Poland. 90% of aviation production is exported to: Indonesia, USA, Venezuela, Italy, Canada, Greece, , South Korea, Spain, Germany and Vietnam. The competitive edge of Polish aviation companies lies in the high quality of products and competitive labor costs. Polish network of production and service companies supported by R&D centers creates potential for cooperation and orders for aviation spare parts and final products.
Polish Automotive sector which ranks second in terms of manufacturing output is a solid spine of country’s economy. Out of 40 car and engine plants located in Central Eastern Europe 16 are based in Poland. Besides an excellent cost-to-quality ratio Poland offers the biggest pool of talented people easy to reach. Stable and predictable economy, short proximity to major European motor vehicle markets, attractive incentives system makes Poland a perfect investment location. Total production of commercial vehicles in the year 2012 closed with a result of about 86 thousand units. In 2011 automotive parts market accounted to 14.5% of Poland’s total export and the value of the automotive export reached the level of 19.6 billion euro. Poland is the second most important exporter of automotive parts and accessories in the Central Eastern Europe region. Very important part of the Polish Automotive export is played by engines, whose sales reached 2.8 billion euro in 2011. The majority of the Polish Automotive export in 2011 was directed to European Union market (84.0%, 16.4 billion euro).
Despite being one of the fastest growing sectors in Poland, biotechnology is still an emerging sector. Further dynamic growth of the domestic biotechnological market is expected, largely thanks to innovative research projects carried out by the Polish biotech companies and academic institutions, as well as by the inflow of foreign investment into biotech sector. Key reasons why Poland attracts investors is availability of highly qualified professionals and competitive labor costs. The most important reason why Poland is one of the most attractive locations for international biotechnology projects is a broad access to highly qualified researchers. Research facilities constitute a network of more than 110 scientific institutions employing more than 2,800 scientists, who mostly work in biotechnology and molecular biology. A fact worth mentioning is that business spending on R&D in Poland has increased over the last year by 800% (from 61 million euro to 500 million euro).
According to Business Monitor International experts predictions, the value of the Polish electronics market will gradually increase. This development will be driven mainly by the growing demand for digital products and increasing public revenues. There are over 310 companies employing over 53 thousand workers. Approximately 95% of production is generated by medium and large companies. The most important foreign investors in the electronics sector in Poland are: Dell, LG Display Poland, Jabil, Sharp, Funai, LG Electronics, Voivodship and Flextronics International Poland.
The Polish IT market is the second largest market in the Central Eastern Europe region, after Russia. According to the 2011 forecast, the market value is projected to increase to 28 billion in polish zloty. Why is it worth to invest in this sector in Poland? First of all it is rapidly developing market and the increase of domestic demand. Furthermore the presence of such global companies as HP, Microsoft, Google, IBM, Oracle or SAP confirms the increase of Poland’s significance in this sector. The reason for Poland’s success as the more and more valuable destination for IT services center is most of all the availability of employees. Another, equally important factor determining Poland’s international recognition is the quality of provided services and the level of creativity that repeatedly exceeds employers expectations. The level of employment in the IT sector in Poland in 2010 amounted to 100 thousand employees. Due to the rapid increase of outsourcing services provided for non-IT companies, further dynamic increase in employment should be expected. The important trend in the IT market is the rapidly growing interest in software and IT services in the sector of small and medium-sized enterprises.
The development of the renewable energy sector is one of the priorities for the Polish government. The specific goal of the Polish energy is to increase the proportion of energy from renewable sources in final energy consumption up to 15.5% in 2020. Wind energy and the use of biomass for energy purposes are currently the most dynamically developing renewables. The most active foreign investors are EDP, Vortex, CEZ, RWE, E.ON, GDF Suez, Mitsui & Acciona, J.Power, Poldanor, Dalkia and AXZON Group. Poland is also becoming an attractive destination for investments in manufacturing of devices used in energy generation. There are estimated to be more than 200 production companies working for the renewable energy sector. It is worth mentioning that according to EurObserv’ER Poland is ranked 5th in the EU in terms of production of primary energy from solid biomass. Poland is also a leader among the new EU member states in terms of total installed capacity of wind farms.
Research & Development
The inflow of foreign capital with the aim of creating research and development centers proves that foreign investors appreciate economic potential of Poland. Positive experiences and great results of R&D centers are the reasons why companies decide to expand their research activities. Among those entrepreneurs are: Motorola, Kainos, NSN and Samsung or polish entities such as Transition Technologies or SMT Software. Lately, an increasing interest in opening new R&D centers could be observed, both in industry sector and also in strongly developing business services sector. Among all EU countries, Poland records one of the most significant increases in the number of young employees in R&D sector (in group between 25 and 34 years old). The number of Polish employees in this sector exceeds the EU average. The most innovative production companies in Poland are the pharmaceutical companies refining oil, producing coke, and producing chemicals and chemical products. In the services sector, the most innovative are insurance and reinsurance companies, financial services firms, and companies operating in the field of information services. Innovative enterprises accounted for 16,1% of industrial companies and 11,6% of service companies. The companies that invest the most in research and development in Poland are: Polish Defence Holding, Fiat Auto Poland, IT companies Asseco Poland and Oracle and pharmaceutical manufacturer Polpharma.