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American

Investor
APRIL 2011
Vol. XXI, No. 4 • ISSN 1506-3240

© American Chamber of Commerce in Poland 2011 www.amcham.pl

Thou shalt Company Profile:3M


CEO Forum: Business Angels

innovate!
Monthly Meeting: Prof. Michał Kleiber
Photo Page: St. Patrick’s Business Mixer

Poles begin to realize that business must think new to move forward
AmCham online

Investor COVER STORY:


American

Thou shalt
APRIL 2011 Vol. XXI, No. 4

what’s on

Do not miss the opportunity


www.amcham.pl
Your online guide to AmCham activities

Download this magazine!


innovate!
Poles begin to re-
to sponsor AmCham events American Investor is available in full as
a pdf for download from the www.am-
cham.pl website. Go to "About Us" in
alize that business
in 2011!
the horizontal menu, and choose
American Investor Magazine from
the pop-up menu. You can download must think new to
past issues of American Investor dat-
ing back to October 2010. move forward, but
We encourage companies to sponsor our Business Mixers, CEO Forums, 4th of July Picnic and other events.  Calendar
a lot of chal-
Business Mixers By clicking on red links in the Calen- langes lie ahead
You can sponsor AmCham Business Mixers through the rest of 2011 (except for July and December). To find out more dar you may visit photo coverage of

about sponsoring Business Mixers, visit www.amcham.pl, click on the Events & Activities link on the horizontal menu bar,
our past events. Blue links will take
you to the announcements of upcom-
when it comes to
and choose Business Mixers.
ing events.
being innovative, page 12;
Plus, ten tips to consider before you
Events
CEO Forums AmCham Monthly Meetings are one of
A high-level discussion panel followed by a cocktail reception, for AmCham CEOs only, held just 3 times a year. To find out the flagship events organized by the
chamber. While American Investor cov- launch your own startup, page 17.
more about AmCham CEO Forums, visit www.amcham.com.pl, click on the Events & Activities link on the horizontal menu ers each Monthly Meeting exten-
sively, including full-page pictorials,
bar, and choose CEO Forums. you can search through picture

4th of July Picnic archives of past events that include


never previously printed material. Just
MONTHLY MEETING
From brawn to brains To find its place in the innovative economy of the future, Poland
Scheduled for Saturday, July 2, 2011, at Królikarnia Palace, Warsaw. To see pictures from last year’s picnic, go to www.am- go to Events and Activities, pick
Monthly Meetings and scroll down for
must change its mindset to foster collaboration, from government ministries on down, a
leading scientist tells AmCham, p. 20
cham.com.pl, click on the Events & Activities link on the horizontal menu bar, and choose 4th of July Picnic. links to archived events.
CEO FORuM
Annual General Meeting & Christmas Reception in December Regions
A life between vision and risk Before they become a force behind the innovative economy
AmCham may be closer than you business angels have to learn to live with risk while aspiring entrepreneurs have to learn to
To see pictures from the last AGM & Christmas Reception, go to www.amcham.com.pl, click on the Events & Activities link think. Apart from Warsaw, AmCham understand their objectives, p. 23

on the horizontal menu bar, and choose Annual General Meeting. has two regional branches which are
active all year long and offer many ex- COMPANY PROFILE
Regional events citing opportunities to interface with
regional business leaders and politi-
Changing the world through R&D American Investor's Tomasz Ćwiok talks with Xavier
Douellou, Managing Director of 3M Poland, about how the company manages for innovation
In addition to Warsaw events, your company can also support AmCham activities in Kraków, Wrocław and Katowice. cians. To find out more about our ac-
tivities in Kraków and the region of
and how he sees the challenges facing 3M’s Polish operations, p. 26

southern Poland, and Wrocław, go to EXPERTS


Regions in the horizontal menu bar, Raise your capital, lower your tax There are cost-effective ways of raising the share capi-
For information about our events organized by AmCham Kraków in Kraków and Katowice, please contact and pick your region of interest. tal of your company, p. 28

Monika Pilarska at +48 608 027 172 or krakow@amcham.pl. Policy Watch The art of the lease Renting office space may seem straightforward, but details can be-
devil, p. 29
Intelligence: For AmCham position
papers, policy statements, official let- Electronic investigators in action Corporate misconduct can be traced, documented and
For information about our events in Wrocław, please contact ters to government ministers and re-
search papers, visit the Advocacy link
proven in court, p. 30

Joanna Bensz at +48 605 678 817 or amcham.wroclaw@pmg.pl. on the horizontal menu to download
the latest AmCham position papers.
Managing the tough conversation Enlightened leaders know there are planned methods
for defusing a conflict, p. 31

Other useful sites EVENTS


For additional information contact Anita Kowalska at +48 22 520 5994. U.S. Chamber of Commerce
AmCham Monthly Meeting, p. 32
AmCham CEO Forum, p. 33
http://www.uschamber.com AmCham St. Patrick's Business Mixer, p. 34-35
American Chamber of Commerce
to the European Union DEPARTMENTS
http://www.amchameu.be
AmChams in Europe From the Editor, p. 2, From the Executive Director, p. 4, Newsline, p. 5, Agenda, p. 8,
http://www.amchamseurope.com Content summaries in Polish, p. 36, Guide to AmCham Committees, p. 37

APRIL 2011 AMERICAN INVESTOR 1


Special
YOUR AMCHAM FROM THE EDITOR

BOARD OF Facebook exclusion American subscription offer


DIRECTORS
The American Chamber of Commerce in Poland
Investor for non-member
The official magazine
companies
Joseph Wancer – Deloitte
Chairman

Judith Y. Gliniecki – Wierzbowski Eversheds of the American Chamber


Vice Chair
of Commerce in Poland

I
richard lada – Telesto n January, following the announcement of the royal marriage of Prince
Vice Chairman

peter kaY – KPMG Polska


Secretary
William and Kate Middleton, Facebook barred two of its members who hap-
pened to share first and last names with the princess-to-be from using their Subscribe to American Investor for
the promotional price of PLN
accounts on the social networking site. The two women, a healthcare assistant
stan popoW – Finacorp in Northamptonshire and a mother from Kent, were identified by Facebook as
Treasurer
impostors of the famous Kate. Their access to their profiles on Facebook was
MEMBERS
Tony Housh John Lynch
blocked, including contacts to their Facebook friends. When questioned by
the BBC, Facebook said it reviews thousands of items of content a day and
800 per year and have AmCham
intelligence delivered to your
APCO Worldwide Lynka
“took action to ensure the website remains a safe and trusted environment.”
Paul Fogo Mac Raczkiewicz The claim that the site is a safe and trusted environment (for users, one

desk—including chamber policy,


Miller Canfield Ex officio
would assume) is dubious. Although created with the intention of serving as a
Piotr Jucha Roman Rewald
McDonald’s Weil, Gotshal & Manges friendly online social gathering, Facebook may be as dangerous as any other
tool in the hands of dangerous people. For instance, South Carolina is consid-
Thomas Kolaja
Alvarez and Marsal
Anna Sienko
IBM ering stiff penalties for prison inmates who smuggle smartphones into prison
to access Facebook for the purpose of organizing crimes and intimidating
committee work, agendas, mem-
ber company news, coverage of
Robert L. Koński
Kulczyk Investments their victims. It seems there is little Facebook can do to disable this type of
threat.

SPONSORS
Ensuring a safe and trusted environment on Facebook is a challenge that is
hard to deliver in practice. Problems will mount and carnage will follow. So far CEO Forums, discussion points
three Polish brands have fallen victim to Facebook’s political correctness. First
was Obsessive, a lingerie brand. Someone notified Facebook that the Obses- with chamber guests, photo cover-
sive profile on Facebook featured pornography, and the brand’s profile, which
had attracted 2,000 fans, was shut down.
That was nothing compared to the losses that Polish clothing manufacturer
age of AmCham Monthly Meetings
LPP suffered because of a virus that infected the Facebook profiles of three of
its brands, Cropp, House and Reserved. Facebook shut down the Cropp and
and other premium events. Just fill
House profiles and limited the functionality of the Reserved profile. Cropp had
260,000 fans, House 240,000, and Reserved 245,000. in the form below and fax it to Tom
Facebook’s decision to close the corporate profiles was handled clumsily,
and in stark contrast to what Facebook is programmed to do when users de- Ćwiok at +48-22-520-5998
cide to close their own profiles. Then the service begs you to reconsider your
decision, displaying pictures of your Facebook friends and saying that each of
them personally will miss you.
Perhaps a dose of the same thoughtfulness would be in order when Face- I order the annual subscription of American Investor for the
book itself decides to close down your profile? Maybe just an e-mail? promotional price of PLN 800 including VAT!
But Facebook may not be thinking about its users any more. It seems more
focused on building a safe and trusted environment for its investors. Earlier in
January, Facebook was on everybody’s lips following the announcement that it Company Name:....................................................................................................................
had raised USD 500 million from Goldman Sachs and a Russian investor in a
transaction that valued the company at a staggering USD 50 billion. The deal Contact Person:......................................................................................................................
would also allow earlier shareholders, including Facebook employees, to cash
out at least some of their holdings. It would make many of them millionaires. Full Address:.................................................................Postal Code......................................
Facebook followed none of the known business models, but developed as
a unique phenomenon. Many of its staff, including cofounder Mark Zucker- Phone:.......................................................................... Fax:...................................................
berg, were not experienced businesspeople, because they were far too young
for that. The prospect of holding a stake in a company valued higher than NIP (for invoicing):..................................................................................................................
companies like eBay, Yahoo and Time Warner, which have been in business
for much longer, may have given Facebook officials an air of sanctity about
themselves when it comes to ensuring that Facebook is a trusted environment Signature................................................... Date:................................................
for investors. But if you don’t look like an investor, but a marketer taking advan-
tage of free access to the social network, you had better watch out.
Your subscription will be activated with the next month’s issue!
AmCham Auditor: Tomasz Ćwiok

2 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 3


Newsline
FROM THE EXECUTIVE DIRECTOR YOUR AMCHAM

News from AmCham and its members

Dear AmCham Members! AMCHAM STAFF


Dorota Dabrowski
AmCham EU new business ventures and in subsequent
years consistently worked to build our posi-
Executive Director
director@amcham.pl
tion,” said Radosław Lesiak, Country Man-
ager of Avis Polska. “Today we can be proud
Members on the move
to have a well-integrated team of employees
Marzena Drela Baker & McKenzie
and our customers’ respect.”

A
Deputy Director
t the beginning of March I attended a conference organized by AmCham EU marzena.drela@amcham.pl
Dr. Kamila Tarnacka has
which included a transatlantic component on innovation. We reviewed some Anita Kowalska Baker & McKenzie joined Baker & McKenzie as a
local partner to head the 8-
highlights of The Transatlantic Economy 2011, the latest edition of a report is- Events & Media Manager Law firm Baker & McKenzie has handled the person energy practice at the
anita.kowalska@amcham.pl PLN 76.6 million IPO of Avia Solutions Group Warsaw office. Tarnacka has
sued each year by AmCham EU and the European-American Business Council. on the Warsaw Stock Exchange. Avia is the several years of experience in
Joseph P. Quinlan of the Center for Transatlantic Relations at Johns Hopkins Uni- Robert Kruszyna regulatory and transactional
Office Manager first listing on the WSE by a company based in
matters, dispute resolution
versity pointed out that neither the E.U. nor the U.S. is doing as poorly as percep- robert.kruszyna@amcham.pl Latvia. Baker & McKenzie is now working on and privatization for the en-
similar projects for companies in Poland as ergy sector, including conven-
tions would have it. In particular, the U.S. is still a strong manufacturing base, even Barbara Pocialik-Malinowska The Presidency Group of the American Cham- well as Bulgaria, the Czech Republic, Slovenia tional and unconventional energy. Along with Tar-
though we perceive that all manufacturing has moved to China. The E.U. is still the Membership and Committees Coordinator ber of Commerce to the European Union was
barbara.pocialik@amcham.pl
and Ukraine. B&M partner Jakub Celiński nacka, three young lawyers joined the Baker &
in Warsaw on March 15–17 to meet top offi- said that the WSE is now considered closely McKenzie energy practice: Oskar Waluśkiewicz,
FDI powerhouse, investing far more in the U.S. than in all the BRIC countries com- Edyta Barwicka and Małgorzata Kliczkowska, all for-
Marta Pawlak cials in the Polish government. The delegation by companies all over Central & Eastern Eu-
bined. What is of concern, however, is the pace of change and progress. If the de- Research and Policy Coordinator of 14 business leaders from a wide range of rope who plan to go public.
merly with CMS Cameron McKenna.

veloped countries remain complacent, then the fast-developing countries could marta.pawlak@amcham.pl industries held 20 meetings in two days. The Artur Kubiak, who has
delegates discussed the preparations for the worked with Baker & McKen-
outpace them by 2020. Innovation and successful commer- Robert Chomik upcoming Polish Presidency of the Council of Chadbourne & Parke zie since 2007, has now quali-
Project Assistant fied as a legal adviser. Kubiak
cialization of innovation are one important way to stay ahead. robert.chomik@amcham.pl
the E.U. and presented the top business priori- The Warsaw office of international law firm specializes in capital markets,
Here in Poland, AmCham has been talking innovation from ties identified by AmCham EU that should Chadbourne & Parke has advised Polish Air- investment funds, and corpo-
AmCham in Kraków boost the investment climate across Europe ports State Enterprise and Port-Hotel Sp. z rate and administrative law.
the beginning of the year. Transfer of technology and com- and the E.U.’s competitiveness. o.o. in negotiations with Marriott International He focuses on public and pri-
Monika Pilarska vate bond issues on the Pol-
mercialization of innovation are a particular challenge in krakow@amcham.pl “We have five big, overarching horizontal for a 30-year franchise to operate a new five-
ish capital market. He repre-
Poland, and for all of Europe it seems. The United States is priorities,” said AmCham EU Managing Direc- star Renaissance Hotel at Warsaw Chopin Air- sents clients in dealings with the Polish Financial Su-
tor Susan Danger. “Those are in innovation, port. Construction will begin this spring, with pervision Authority, the National Depository for Securi-
tops in terms of success in innovation commercialization, AmCham in Wrocław sustainable growth, the completion of the sin- completion scheduled for the first half of 2013. ties, and the Warsaw Stock Exchange.
and this model is something from which we would like to Joanna Bensz gle market, achieving a low-carbon economy, Chadbourne previously advised the Polish
amcham.wroclaw@pmg.pl
and people power, which is building human re- airport authority and Port-Hotel on develop-
help Poland learn. We are starting with small steps, by im-
sources for the future economy in Europe.” ment of the Courtyard by Marriott, the first
CB Richard Ellis
proving the cooperation of academia and business to create American
Investor
According to Rory Macmillan, who chairs hotel at Warsaw Chopin Airport. Natalia Pradelska has joined
the right atmosphere for making money off of intellectual ac- the E.U. Presidency Group, “AmCham EU the retail team of real estate
Dorota Dabrowski looks forward to engaging with key Presidency CB Richard Ellis agency CB Richard Ellis. She
AMCHAM EXECUTIVE DIRECTOR complishments. We started this work with a study and sur- is responsible for marketing
Published by the American Chamber of Commerce in Poland stakeholders before, during and after the Pol-
and leasing of shopping cen-
vey of members’ experiences and are increasingly working ish Presidency. They include policymakers in CB Richard Ellis has been named the premier
ters and outlets across
Warsaw and Brussels who are responsible for global brand in commercial real estate, ac-
with universities and R&D centers on their strategic endeavors. EDITOR-IN-CHIEF, ART & DTP
Poland, as well as securing
working on E.U. policies. As the Presidency cording to a Lipsey survey of industry profes- new retail clients. Pradelska
In mid-March, we hosted a delegation from AmCham EU focused on Poland’s tomasz ĆWiok starts to work, our committees tend to engage sionals worldwide. CB RE has been voted the has over 10 years of profes-
tomasz.cwiok@amcham.pl
upcoming E.U. Presidency. A delegation of 14 corporate representatives attended industry’s top brand for 10 consecutive years. sional experience working for such companies as
in a more detailed dialogue with the various
EDITOR-AT-LARGE More than 25,000 professionals participated in DTZ, Unibail-Rodamco, WR Consulting Polska and
a series of 20 meetings with key players and decision-makers in the Polish govern- christopher smith people as policy decisions are made and new Sisim Polska. Pradelska graduated from Karol
legislation is going through.” the 2011 survey, including property owners, in- Adamiecki University of Economics in Katowice.
ment to discuss areas of key interest, like data protection, the Common Agricultural christopher.smith@neostrada.pl
Macmillan said that Poland has a unique vestors, lenders, brokers and property man-
Sean Doyle has been pro-
Policy, carbon emissions, better regulations, transatlantic cooperation, the Services Printing opportunity to have a successful first Presi- agers. moted to associate director in
Q Invest Ltd dency if it focuses on closing issues that are CB RE has also been named to the annual the capital markets depart-
Directive, E.U. patent reform, and transportation. The delegation had the opportu- +48 22 424 6600 roster of the Most Admired Companies in the ment of CB Richard Ellis.
on the table rather than introducing new ones.
nity to meet with key ministries and with former Prime Minister Jan Krzysztof Bi- Danger also underlined that AmCham EU real estate industry compiled by Fortune mag- Doyle has 8 years of com-
azine. The survey covers 57 industries and is mercial real estate experi-
elecki, advisor to Prime Minister Donald Tusk, and to have a working lunch in the To contact AmCham had superb cooperation with AmCham Poland ence in the U.S., the U.K. and
please write or call: in organizing the visit. “AmCham Poland has one of the most definitive report cards on cor- Central Europe. He joined CB
Presidential Palace with Olgierd Dziekoński, Secretary of State in the President’s porate reputations. CB RE is the highest-
ul. Emilii Plater 53, WFC been extremely helpful in the way it organized Richard Ellis in 2010. Doyle
Office. On our part, we were pleased to see the high level of competence and pre- 00-113 Warsaw the meetings,” she said. (Pictured: AmCham ranked commercial real estate services com- focuses on sales and acqui-
tel: +48 22 520 5999 pany on the list. It scored particularly well in sitions of retail, logistics and
paredness of the Polish government representatives on all topics addressed. fax: +48 22 520 5998 Poland Executive Director Dorota Dabrowski, office properties. Doyle is a member of the Royal In-
first from left, with AmCham EU Presidency global competitiveness (#1) and in quality of
Besides the E.U., transatlantic topics are also on our mind. In May, AmCham will e-mail: office@amcham.pl stitution of Chartered Surveyors.
www.amcham.pl Group members, including AmCham EU Man- services, people management and social re-
send a small delegation to Dallas and Denver to encourage select companies to aging Director Susan Danger, third from left, sponsibility (all ranked #2).
Cisco
In other news, CB RE reports that investors
invest and do business in Poland. This will be the first time AmCham organizes and Rory Macmillan, eighth from left.)
have shown a clear strategic shift in their in- Dariusz Fabiszewski has re-
such a mission on its own, so we are curious to have the experience and to see © American Chamber of Commerce in Poland 2011. vestment preferences in Europe in favor of
the results. More importantly, at the end of May, U.S. President Barack Obama will
All rights reserved. Avis Germany and Central & Eastern Europe as the
placed Paweł Malak as gen-
eral director of Cisco Poland.
Car rental specialist Avis is celebrating its first most attractive markets to purchase real estate Fabiszewski has 15 years of
visit Poland for a summit of Central & Eastern European heads of state. This will be American Investor is the official publication of the Ameri-
20 years in Poland. Avis has grown from an experience in senior manage-
can Chamber of Commerce in Poland. It is a voice for for- in 2011. A survey of 350 European real estate ment in IT and business con-
his first visit to Poland during his presidency and an important opportunity for both operation with 16 cars and six employees investors by CB RE revealed that about a third sulting. Before joining Cisco,
eign investors and the business community in Poland.
countries. working from offices at the Warsaw airport and of investors intend to target acquisitions in Fabiszewski worked for Ernst
The magazine strives to keep our members and other
the Marriott Warsaw to nearly 1,500 cars and Germany in 2011, compared to 18% in 2010, & Young as head of the IT
readers up to date by following chamber news and report- team. Before that he was gen-
100 people at all airports across the country. and around a quarter of investors have CEE as
ing on the leading trends in business and policy. eral director of IBM in Poland and managing director
By the end of 2011 Avis will have offices in the their top investment target this year, up from of Fujitsu Siemens Computers for Eastern Europe.
20 largest cities in Poland. 16% last year. The results were announced at Fabiszewski earned a degree in telecommunications
letters to the editor should be e-mailed to
“We started when the timing was right for CB RE’s European Investment Briefing in from the Warsaw University of Technology.
tomasz.cwiok@amcham.pl

4 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 5


HOT DATE

Newsline News from AmCham and its members


Apr.06.11
Event: AmCham Monthly Meeting
Place: InterContinental Warsaw
Time: 7:30 A.M.

March at MIPIM, the international real estate


event held annually in Cannes.
Cushman & Wakefield Hewlett-Packard hotel in Poland to provide kosher catering. The
certification gives the Marriott the green light to
and Slovakia. “The Czech Republic and Slovakia
have great investment potential in the public sec-
Trusiewicz & Siwko
In Poland, CB RE represented Pekaes SA, According to a report published by commercial HP has introduced a new family of fast-perform- cater Jewish weddings and other events with tor, especially in public-private partnership,” Mur- The Ministry of Foreign Affairs has selected
part of the Kulczyk Holding group, in the real estate consultancy Cushman & Wakefield, ing network access points to help companies kosher requirements. The Marriott’s kosher phy said, adding that the energy sector also law firm Trusiewicz & Siwko to provide legal
March sale of a site in the center of Warsaw to global investment in commercial real estate will improve productivity: HP E-Series Mobility E- menu includes cold starters, soups, main looks promising for investors. PM Group plans to services related to the selection of business
OKAM Capital. The 1.2 hectare site in the Wola continue to recover in 2011, with a broader MSM460, 466 & 430 Access Point. The new ac- dishes and desserts. hire about 100 people at the two offices in the partners for Poland’s upcoming Presidency of
district is slated for residential and retail devel- focus on emerging and second-tier markets, in- cess points allow for wireless data transfer at Obtaining the kosher certification was “an im- next three years. the Council of the E.U. Trusiewicz & Siwko is
opment. stead of just the main business centers that trig- 900 Mb/s and enhance coverage areas with portant and long-planned investment project,” In other news, PM Group has developed a involved in negotiations for transportation,
gered most investor attention last year. Accord- beam-forming technology. According to HP, the according to Albert Helms, general director of feasibility study for redevelopment of the former telecommunications, IT services, and food and
ing to the International Investment Atlas 2011, technology offers the best performance in the the Marriott Warsaw. He said that kosher food, Remy Automotive Poland plant in Świdnica, fol- beverages. So far agreements have been final-
which monitors investment flows in commercial marketplace today. apart from being targeted to individuals who lowing the company’s departure from Poland in ized with such suppliers as Coca-Cola, Mi-

Members on the move property in 56 countries, global investment vol-


umes grew 42% in 2010, to USD 564 billion.
Kelly Services
observe kosher traditions, represents an excel-
lent addition to the existing cuisines available at
2008. The new investor is American Axle & Man-
ufacturing. The factory holds 12 hectares of land
crosoft, Peugeot, Orange, and Scania.

Investment in Europe, the Middle East and


More than three-quarters of Polish respondents
the Marriott Warsaw. in Invest-Park, the Wałbrzych Special Economic Volantis (renamed Antenna)
Marriott Africa rose nearly 50% in 2010, to USD 155 bil-
lion, with Central & Eastern Europe up 60% would be willing to move for the right job, with
Zone.
Antenna Software, a developer of mobile ap-
and Western Europe up 56%. Investor demand many even prepared to relocate to another Orco Property Group plications, has acquired mobile Internet soft-
Gavin Baxter has joined the
Marriott Warsaw as executive picked up late last year after a slow summer country or continent in order to secure their ProLogis ware company Volantis Systems. After the
chef. Baxter, who comes from due to sovereign debt worries. Demand has fo- preferred position, according to a recent survey Global provider of distribution facilities ProLogis merger, the company will operate under the
Australia, has 20 years of ex- by HR specialist Kelly Services. The most mo- Antenna brand. It will continue to provide full
perience managing kitchens
cused on the most liquid markets, with the reports that it signed leases for more than a mil-
U.K., Germany, France and Sweden seeing the bile workers are in General Y (age 18–29), who lion square meters of space in Central & Eastern support for Volantis products to its current
at five-star hotels in Norway
and Austria, and on cruise most activity and aggressive bidding on core are more footloose than Generation X (age 30– Europe last year—61% of it in Poland alone. It is customers, prospects and partners, through
ships. Baxter oversees all of assets. However, as yields in these markets 47) and more fancy-free than Baby Boomers the most space ProLogis has ever leased in its existing locations, including Kraków as well
the restaurants at the Marriott, have fallen, some investors have begun to look (age 48–65). Poland or the region in one year. In Poland Pro- as teams in the U.S., the U.K., India and Hong
including Parmizzano’s, Lilla The findings are part of the Kelly Global Kong.
Weneda, Chopstix, the Lobby
at other areas such as Poland, Russia and Logis has over 2.1 million sq. m. of space in 105
Turkey. Workforce Index, a survey in late 2010 and buildings in 25 distribution parks, with a 33% The addition of the complementary Volantis
Bar, Panorama Bar & Lounge, Champions Sports Bar,
Vienna Café and La Patisserie. Baxter is in charge of Michael Rhydderch, head of EMEA Capital early 2011 of some 97,000 people in 30 coun- market share. technology will allow Antenna to immediately
staff supervision and training, menu creation, cost Markets for Cushman & Wakefield, said, “It is tries, including Poland. The survey also re- In the first two months of 2011, ProLogis offer its customers a significantly broader
control, quality control and supplier selection. clear that the volume of assets coming to the vealed a significant number of people working signed five new leases and one lease extension range of mobile web solutions, including the
market is increasing substantially as a result of in “unconventional arrangements,” involving Construction of the 18th floor of the Złota 44 for warehouse space at its distribution parks in underlying architecture for mobile commerce
banks forcing or encouraging action. At the long or unusual hours, multiple jobs, living residential tower (pictured) was finished in the Silesia, for a total of nearly 60,000 sq. m. and enterprise app stores. “Our customers
PricewaterhouseCoopers same time the volume of equity in the market is away from home, or heavy travel. first half of March. Developer Orco Property can go to a single provider for all their mobility
“In an environment where the market for tal- needs across myriad devices,” said Antenna
Mateusz Walewski has
joined the marketing, com-
ever greater and debt is, selectively, becoming
more affordable and available. We are expect- ent is becoming global, there is a growing real-
Group has now completed a third of the tower’s
total height of 192 meters. Orco founder and
Salans CEO Jim Hemmer.
munications and business ing an active trading environment and contin- ization that many individuals may decide to re- president Jean-François Ott said the cold shell In March, Salans Warsaw partner Piotr
development department at ued pressure on prime yields during 2011.” locate for work, rather than simply hope that the phase should be complete by the summer of Nowaczyk won the International Law Office
PwC as an economist. work will come to them,” said Agnieszka Wal- Client Choice Award in the field of arbitration, for
In other news, Cushman & Wakefield has 2012, and construction is now progressing ac-
Walewski has long-term expe-
rience in economic advisory, been appointed lead letting agent for Eurocen-
trum, a 64,000 sq. m. office building to be built
ter, Country Manager at Kelly Services Poland.
In Poland, jobseekers are most willing to re-
cording to schedule. As construction draws to a
close, Ott said, a new storey should be added
the second year in a row.
The ILO awards are based on a survey of sen-
Members on the move
working abroad in Europe
and Asia. Prior to joining PwC on Al. Jerozolimskie in Warsaw. It will be a locate to other European countries (60%), fol- every week. ior corporate counsel only, with this year’s win-
Walewski was a member of green project and has applied for LEED Gold lowed by North America (16%) and Asia-Pacific ners chosen from a pool of more than 2,000 indi- White & Case
the strategic advisory team of (12%), with South America at 4%, the Middle vidual client assessments. Established in 2005,
the Prime Minister of Poland. He is a graduate of the
certification.
Cushman & Wakefield represented Ardom in East at 3%, and Africa at 1%. Panattoni Europe the ILO Client Choice Awards recognize law Paweł Pietkiewicz has joined
University of Warsaw and the University of Sussex. White & Case LLP in the dis-
the sale of the Panorama Shopping Center in Carl Panattoni, the founder, owner and chair- firms and partners around the world that stand
pute resolution practice in War-
Ewa Boguszewska has
joined the MCBD department
Krasnystaw to First Property. The 5,200 sq. m. Manpower man of Panattoni Development Company and
numerous affiliates in the Panattoni group, in-
apart for the excellent client care they provide
and the quality of their service.
saw. Prior to joining White &
Case, Pietkiewicz worked for
of PwC as marketing and shopping center was opened in March 2009.
In the recent Employment Outlook Survey from cluding Panattoni Construction and Panattoni CMS Cameron McKenna,
communications manager. Cushman & Wakefield has been appointed
global HR specialist Manpower, Polish employ-
Boguszewska has over 13
years of professional experi-
exclusive agent for commercialization of the 4-
ers report stronger job prospects for the sec-
Europe, is the winner of the 2011 CEEQA
award for Lifetime Achievement in Real Estate.
Sheraton Warsaw where he headed its dispute
resolution practice in Poland.
star Rialto Hotel to be built by MOT Sp. z o.o. He has advised on a wide
ence in international financial ond quarter of 2011. Of the 750 Polish employ- The award, sponsored by the Financial
on Ostrów Tumski, the island in the historic cen- range of matters and has
institutions, including Volkswa- ers surveyed, 16% anticipate adding to their Times, was presented at the annual CEEQA in- broad experience in demand-
gen Bank Polska, where she ter of Wrocław.
workforce, 4% plan reductions (down from 12% dustry awards gala at the Warsaw Marriott in ing sectors. He is ranked in Tier 1 in the Chambers Eu-
worked prior to joining PwC.
in 1Q 2011), and 76% expect no change. March. It is given each year to an inspirational rope and EMEA Legal 500 directories.
Boguszewska is a graduate of
the Warsaw School of Economics and completed a General Electric “The outlook for Poland is upbeat and repre- leader who has made a significant and durable Wierzbowski Eversheds
postgraduate program at the Chartered Institute of GE Hitachi Nuclear Energy VP Danny Roder- sents moderate improvement over the first- contribution to the real estate industry in the
Marketing in London. ick met with the Polish parliamentary task quarter forecast,” said Iwona Janas, Country New Europe. Dr. Lech Giliciński has
force on nuclear energy to showcase GEH’s Manager of Manpower Poland. “Polish employ- In other news, Panattoni Europe has ex- joined Wierzbowski Ever-
Salans advanced nuclear technologies, as part of the ers are among the most optimistic in the 20 panded its Silesian warehouse park portfolio. sheds as a partner. Giliciński
countries surveyed in Europe, with approxi- has extensive experience in
Salans has appointed Paweł
technology review for Poland’s nuclear energy The new projects, Panattoni Park Gliwice I and corporate and financial re-
program. Poland plans to start the construc- mately one in six anticipating growing their pay- Panattoni Park Gliwice II, include three build-
Grabowski as a partner. structurings, banking, fi-
Grabowski advises strategic tion of its first nuclear power plant in 2016, for rolls in the coming quarter.” The percentage of ings totaling 30,600 sq. m. The first tenant at nance and private equity.
and financial investors on all connection to the national grid in 2020. Roder- employers planning staff cuts is the smallest Panattoni Park Gliwice II is Saint-Gobain Glass The Oriental at the Sheraton Warsaw is featur- Giliciński was a principal
types of investments in Poland ick underlined GEH’s extensive experience in since 3Q 2008, she pointed out. Polska. ing Asian poultry. Chef Aprochet Inboom (pic- legal adviser to the Minister
and internationally. His key ex- Industries that should see increased hiring in tured) serves delicate duck dishes prepared in of Justice and EBRD in the
perience includes major M&A
building nuclear reactors that are safe and in- Panattoni Europe is also expanding Panat- process of implementing the
expensive to run. He also stressed that GE 2Q 2011 include construction, mining, manu- toni Park Wrocław II by another 11,500 sq. m. many traditional ways with popular Asian
transactions, real estate proj- Polish Bankruptcy and Restructuring Law. He is also
ects, corporate restructurings, employs over 10,000 people in Poland and co- facturing, finance, insurance, real estate, and spices. The dishes include Chinese soup with the World Bank’s country partner in Poland in the
business services. duck meatballs, vegetables and soy pasta,
and complex domestic and
cross-border joint ventures. Grabowski is admitted to
operates with Poland’s academic and scien-
tific communities. Earlier, GEH signed a coop-
PM Group crispy duck with vegetables and mandarin
area of insolvency and restructuring. Giliciński grad-
uated from the Faculty of Law and Administration at
the bar in Poland and New York and has also qualified
as a solicitor in England and Wales. A graduate of the
eration agreement with the Polatom Institute of Marriott Warsaw Con Murphy, managing director of project
management consultancy PM Group Poland, is
sauce, and duck breast in pepper and garlic
sauce. The Oriental specializes in traditional
Adam Mickiewicz University in Poznań and the Uni-
versity of Oxford, and earned an LL.M. at the Univer-
University of Warsaw and Harvard Law School, he has Atomic Energy, which advises the Polish gov- sity of Connecticut School of Law, where he was a
The Chief Rabbi of Poland, Michael Schudrich, extending his responsibility to cover PM Group dishes from Thailand, China, Japan, Indonesia
been working for Salans since 2001. ernment on nuclear energy issues. Fulbright Scholar.
has certified the Marriott Warsaw as the first offices opened recently in the Czech Republic and Malaysia.

6 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 7


Agenda Intelligence from AmCham and its committees
For the AmCham Guide to Committees see inside back cover

Environment & Energy Committee Financial Services Committee

Managing debt
duction sector is very emission-intensive. of 2009 Warsaw sold debt worth PLN 1.5 bil-
Meanwhile, as agreed, in 2013 the European lion, but other cities only a fraction as much:
emissions trading system will introduce new Kraków sold debt worth PLN 250 million, Bi-
rules governing the allocation of CO2 emis- ałystok PLN 80 million. Apart from those of-
sion allowances. This means that from 2014 fers, other debt sold by municipalities in
on, producers of electricity will not be eligible Poland targeted the banking sector.
for any free emission quotas, but will have to With long-term demands for financing In 2010, agreements were signed with the
pay for the CO2 they release to the atmos- Warsaw does its best to be creditworthy European Investment Bank, among others,
phere. for a total of PLN 200 million of new debt to

T
According to Katarzyna Kłaczyńska, an as- he volatile investment atmosphere changes in municipal finance law in 2010. be sold to EIB in 2011.
sociate at CMS Cameron McKenna, the new around the world, including high aver- The law has imposed two types of limits on In February 2011, the City of Warsaw
ETS regulation will have a fundamental im- sion to risk, which in turn increases municipalities: they maintain a balance in signed an agreement with PKO Bank Polski
pact on electricity producers in Poland. bond yields, and volatility on the local market their current budget, while financing it, as well and Bank Pekao, the two biggest banks in
“Right now, the electricity sector gets more or as well, both have the City of Warsaw worried as their debt servicing, from surplus money, Poland, to organize bond issues on the do-
less 70-80% of what they need for free,” she about its potential to pay down its debt on borrowing or sale of assets. “There are some mestic market in 2011.
said. However, as Kłaczyńska added, the time. This was the main message from Bog- discussions about introducing further limits Nawrocki said that a good time for issuing
new E.U. member states, including Poland, dan Nawrocki, deputy director of the Debt on municipal finance, regarding their deficits, fixed-rate bonds would be before mid-May, a
whose power sector is outdated and emis- and Financial Policy Department at Warsaw but we do not know how this discussion will time when a lot of issues are planned on the
sion-intensive, may nonetheless be given City Hall, when he met with the AmCham Fi- evolve,” Nawrocki said. European markets. He also said that in a con-
more time to adjust to the new emission nancial Services Committee in February. In May 2009, the City of Warsaw issued servative case scenario, where OFEs only
regime. Those countries will have an option As if this were not enough to worry about, five-year maturity euro bonds at the Luxem- reinvest their money, the potential purchase
to apply for free emissions allowances for the recent government plans to cut the por- bourg Stock Exchange worth EUR 200 mil- of municipal bonds is estimated at approxi-
2013–2020. tion of public pension contributions paid to lion, at a yield of 7%. Two months later, War- mately PLN 1.5 billion in 2011.
One problem is that the application the Social Insurance Institution (ZUS) that are saw issued 10-year maturity bonds for PLN Nawrocki said that the estimated supply of
Poland’s power generation is emission-intensive and in need of an eco overhaul process is complex and time-consuming. An- allocated to the open pension funds (OFEs) 600 million at Catalyst at a yield of 7.38%. In debt next year may reach a total of PLN 23.5

Clearing the air


other is that Poland and the European Com- from 7.3% to 2.3% of the entire ZUS fee February 2010, Warsaw sold another PLN 300 billion, including PLN 16.2 billion from munici-
mission tend to disagree on how to interpret poses more question marks for the city, ac- million worth of debt at Catalyst with a matu- pal governments, PLN 0.8 billion from public
certain provisions of the transition agree- cording to Nawrocki. This is because the rity of 12 years and 7.03% yield, followed by companies, PLN 15.7 billion from BGK bonds,
ment. “The truth is that the option for transi- OFEs are among the major investors in another tranche of 12-year-maturity debt at and PLN 2.8 billion from corporations.
As international efforts to cut carbon emis- tional periods was included as a last-minute bonds in Poland. Reducing the funds that go Catalyst in April 2010 worth PLN 300 million Nawrocki estimated the demand for debt at
sions become more definite, new E.U. concession,” Kłaczyńska said. “It is very am-
biguous and self-contradictory in some as-
to the OFEs for management would reduce
their ability to buy municipal bonds in the fu-
with a 6.519% yield. In May 2010 Warsaw sold
another PLN 300 million in bonds with 7-year
PLN 10.5 billion, including PLN 6.7 billion
from OFEs, PLN 0.8 billion from banks, PLN
member states need to clarify whether they pects. Member states that would like to pur- ture and significantly limit the inflow of capital maturity and a 5.95% yield, at Catalyst. In Oc- 1.5 billion from mutual funds, and PLN 1.5 bil-
will qualify for transitional relief from 2014 sue the option read these provisions differ- into the domestic financial market. tober 2010, through a private placement, War- lion from insurance companies.
onward. ently. The unfortunate circumstance here is “In 2010 OFEs received PLN 23 billion in saw sold nearly PLN 100 million worth of debt Based on these estimates, the gap in de-
that in the end, it is the European Commis- contributions,” Nawrocki said. “If the new reg- with a 15-year maturity and an undisclosed mand is PLN 13 billion, and it is not clear who

T
he climate conference in Cancun, Mex- said, developing countries should be a part sion who assesses the applications from the ulations become reality, that amount will fall to yield. may be counted on as a potential buyer.
ico, in December 2010 was a major of the financing solution. member states and can accept or reject PLN 7 billion.” However, the supply of municipal bonds Nawrocki said it is anybody’s guess how
success because all countries at the Technology is another important point, as them. In other words, while member states Nawrocki said that the role of OFEs in fi- targeting institutional investors, such as much of the debt will be purchased by foreign
negotiating table, including both more- and it is supposed to help the developing coun- read the bill in their own way, the European nancing both central government and munici- OFEs, has been very low. Since the beginning investors.
less-developed economies, agreed to ac- tries mitigate the negative results of emission Commission has the final say. That is how it pal debt is significant. “In 2010 OFEs alone
knowledge their shared responsibility for cuts. Chruszczow noted that this is an oppor- works.” bought PLN 9 billion out of PLN 11 billion of
global climate change, according to Tomasz tunity for business to develop new technolo- Kłaczyńska suggested that the applicants road construction bonds from Bank Gospo-
Chruszczow, director of the Department of gies and find new markets. “It is also an op- should figure out how the European Com- darstwa Krajowego,” Nawrocki said. “As of
Climate Change and Atmosphere Protection portunity to adapt existing technologies to mission approaches the regulations so that the end of January 2011, OFEs had invested
at the Polish Ministry of the Environment. the needs of developing countries,” he said. they are in a position to draft their applica- PLN 118 billion in Treasury bonds and PLN
Speaking at a meeting of the AmCham En- Chruszczow added that soon the division tions in a way that makes it hard for the Com- 16.7 billion in non-Treasury bonds.”
ergy & Environment Committee in February, into eco-friendly and non-eco-friendly tech- mission to reject them. So far, OFEs have purchased 72.54% of the
Chruszczow said that all the negotiators in nologies will be an artifact of the past, as all This problem also means that Poland does City of Warsaw’s debt, worth PLN 1.1 billion.
Cancun took a realistic approach by focusing technologies in use will have to be eco- not know whether its power industry will be By comparison, insurance companies bought
on areas universally viewed as achievable friendly. “Any technology that helps save re- getting any free CO2 allowances or not. “The a total of 16.67% of the debt (PLN 250 mil-
and deciding to leave more difficult issues to sources helps the climate,” he said. “So does commission will have six months to assess lion), banks 8.53% (PLN 128 million), mutual
be addressed at future summits. any technology which saves energy.” an application,” Kłaczyńska said, “so it will funds 2.00% (PLN 30 million), and brokerage
Among the key elements agreed in Copen- Another speaker, Magdalena Kostulska, take a long time before an applying country houses 0.26% (PLN 4 million).
hagen in 2009 and incorporated into the Private Sector Coalition Specialist at the knows anything.” Another problem is the relatively high de-
Cancun Agreements were those governing United Nations Development Program, said It is safe to say that the Polish power in- mand in Poland for variable-rate bonds, while
targets for emissions reductions, a mecha- that the Cancun Agreements offer a new par- dustry is disadvantaged compared to coun- Warsaw is the only issuer of fixed-interest
nism for financing the process estimated to adigm change toward building a low-carbon terparts in other E.U. member states. As bonds so far listed on Catalyst, the bond mar-
cost USD 100 billion, the technology, and the society. “A low-carbon society should still Kłaczyńska explained, “They will not be eligi- ket at the Warsaw Stock Exchange. In its debt
transparency of process implementation. support substantial opportunities for growth ble for any free CO2 allowances, but they portfolio Warsaw has PLN 1.5 billion in bonds
Discussing the financial solution, known as and sustainable development,” she said, “but have had since 2009 to adjust their opera- issued at fixed rate and only some PLN 500 Every year in March the AmCham Tax Committee and KPMG organize a seminar
the Green Fund, which is now being built, this will require innovations and also more tions to the new regulations. In Poland the million in bonds issued at a floating rate. about tax issues for U.S. citizens living and working in Poland. This March speak-
Chruszczow said that it is impossible for the sustainable production, consumption, and problem is that if we do not get any free CO2 To make matters even worse for Warsaw, ers Dagmar Gessner-Gaspar and Lisa Xu (pictured) from the KPMG U.S. Tax
public sector to raise this much and therefore lifestyles.” allowances, we will have only six months to the banking sector is not eager to lend as it Center in Frankfurt presented new U.S. tax developments that affect individuals
living abroad, while Mateusz Kobyliński from KPMG International Executive Serv-
the business sector should become involved The issue of technology is an important adjust our industry to the E.U. regulations.” waits to see what happens with municipal ices in Warsaw talked about the most recent Polish personal income tax regula-
in the process. Even more importantly, he one for Poland, a country whose power pro- debt throughout the country following tions that concern expatriates.

8 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 9


Agenda Intelligence from AmCham and its committees

European Union Affairs Committee Consumer Products Committee

The Jessica program, which in Poland covers only two provinces, focuses on supporting urban revitalization projects The national stadium can be adjusted to suit not only sports events but a wide scope of other commercial events

An explosion of euros No white elephant


BGK administers E.U.-funded lending programs to shore The National Sports Center, operator of the National Sta-
up Polish regions threatened with social implosion and to dium under construction in Warsaw, is selling naming rights
help grow technology to the stadium and looking for sponsors for the numerous
commercial opportunities offered by the stadium complex
P
roject finance opportunities available to 3.77% interest, which is the reference rate set Polish provinces, is called Jeremie and

P
small and micro enterprises from Bank by the National Bank of Poland. For projects caters to small and micro enterprises in need oland’s National Stadium in Warsaw will will be regarded as an important venue for big comes with some limitations as well. Unlike
Gospodarstwa Krajowego, Poland’s that deliver earlier than planned, the interest of capital for developing innovative technolo- be the most modern sports arena in Eu- musical events. The stadium will fit 70,000 other big sports arenas, the National Stadium
only wholly state-owned bank, were on the rate may be lowered to 1.75%. The financing gies. BGK can either underwrite loans from rope when it holds its grand opening in spectators when the stage is placed in the will not have a huge parking lot, due to space
agenda in March when the AmCham Euro- is available for up to 20 years. Investors have commercial banks or provide direct loans to June 2012, according to Piotr Kwiecień, mar- center of the playing field and the rest of the limits. The parking lot will hold only 1,700 vehi-
pean Union Affairs Committee organized a until 2014 to submit projects for the program. companies, known as “technology credit.” keting director of the National Sports Center, field is filled with additional seating. Techni- cles. Because of this, one of the official poli-
meeting with BGK CEO Tomasz Mironczuk. After 2014, submissions will not be accepted. BGK has PLN 2.7 billion to distribute by the state-owned company that manages the cally speaking, there are four gateways to the cies of the National Stadium will be to encour-
One set of opportunities stem from BGK’s Mironczuk said that so far BGK, which is in 2014. A single loan may be up to PLN 4 mil- facility. At a meeting with the AmCham Con- playing field, with two of them big enough to age sports fans to arrive by Warsaw’s excel-
participation in the European Commission’s charge of handling the fund, has looked into lion. The idea behind this program is to elimi- sumer Products Committee in March, handle trucks carrying heavy equipment. lent public transit system. The stadium will be
Jessica program, which aims at changing the 20 projects submitted by potential investors. nate barriers to obtaining financing that small Kwiecień argued that the new Warsaw land- Kwiecień noted that the stadium can be ad- served by tram, bus and commuter rail, and,
way financial aid is distributed in the E.U. Most of them were shopping centers. But and micro enterprises may run into following mark will offer exceptional business opportuni- justed to suit other events requiring fewer eventually, the east-west line of the Metro,
from a system of grants to a system of finan- while BGK welcomes commercial projects, it the introduction of stiffer lending criteria for ties for the owner and partner companies. seats. There is a lower ring, with approxi- which is under construction. According to
cial injections that are eventually repaid by also hopes to see projects that combine commercial banks. The National Stadium, built to accommo- mately 20,000 seats, which is permanent. The Kwiecień, public transit has the capacity to
the companies, organizations or institutions urban development with social engineering, Mironczuk said that regrettably only three date the Euro 2012 European Football Cham- upper ring can be covered or used as a tech- move 70,000 to 100,000 people to or from the
that receive them. The idea is that money in- in a creative and smart way, to create condi- micro firms applied for technology credit in pionship, will be buzzing with activities before nical area for lighting so it does not look facility per hour.
vested in a project should in time be re- tions for socially degraded areas to recover, Poland in 2010. For the program to be in full and after the soccer is played there in June of empty. Kwiecień said that the stadium could For now the National Sports Center is look-
turned, to be doled out again for the benefit so that they attract new inhabitants and busi- swing, BGK needs to receive about 20 appli- next year. then appear full at an event for 20,000 people. ing for companies interested in purchasing
of other pro-social projects. The money is nesses and eventually contribute to the over- cations for financing a month. Kwiecień stressed what he said were The stadium will offer shopping and serv- naming rights to the stadium. Kwiecień said
made available to investors at very low inter- all social and economic development of the Bank Gospodarstwa Krajowego is the only unique aspects of the stadium. Location is ices on a promenade on the ground floor and that so far the biggest deal for naming rights in
est and for long periods. city they are part of. wholly state-owned bank in Poland. Its mis- one. The stadium is 4 km from the center of four upper levels. There will also be 8,000 sq. Poland was a five-year deal for PLN 35 million
The Jessica program, which in Poland cov- Such projects are of crucial importance for sion is to provide financing to the public sec- Warsaw (the Palace of Culture) and 12 km m. of office space overlooking the nearby at Baltic Arena in Gdańsk, known at the mo-
ers only two provinces, Wielkopolska and Poland, especially along the western border, tor, but it also supports financing for micro, away from the only international airport serv- park. ment as PGE Arena. Kwiecień said that the
West Pomerania, focuses on supporting where inhabitants often relocate to nearby small and medium-sized enterprises. It may ing Warsaw today. As an integral part of the The complex will include a conference cen- operator definitely expects to beat that deal
urban revitalization projects, for which BGK Germany in search of better jobs and new become involved in investment projects as fabric of the city, the stadium offers opportuni- ter totaling 16,000 sq. m. in two separate halls both in price and duration.
manages an urban development fund. But perspectives. While the German economy well as trade contracts including underwriting ties to make money not only on sporting and two other event venues: the Business Kwiecień said that so far construction of the
“urban revitalization” means more than just continues its robust growth, experts say that for up to two years. The bank has good rela- events, but also on live concerts and other Club, with a 2,600-seat auditorium, catering stadium has generated a lot of interest, and
commercial redevelopment of run-down city this trend may intensify, which may lead to tions with other financial institutions and is events for various types of audiences. The services and a business center, as well as the many consulting companies have expressed a
areas. It is about making unattractive districts social implosion in some areas of the building a roster of trading clients who spe- complex will offer a total of 200,000 sq. m. of Fun Club, with 2,200 seats as a venue for less willingness to work with the National Sports
attractive again for business, entrepreneurs provinces covered by the Jessica program, cialize in exporting goods made in Poland. enclosed space, and the stadium itself will formal events. Center. Polish and international media and in-
and inhabitants. Wielkopolska and West Pomerania. Escala- The bank backs Polish exporters to such have 55,000 seats under a fully retractable An ecumenical chapel inside the complex dustry experts have also devoted a lot of at-
BGK has PLN 290 million to distribute in tion of this implosion would be difficult to countries as Russia, Belarus, Kazakhstan, roof. Thanks to the roof, which will make it will offer commercial opportunities as well, tention to the project. In 2010 alone, the com-
the two Polish provinces to investors who stop, and the areas affected by it would need and, recently, Turkey, Moldavia, Bosnia, Ser- possible to host major events in the winter, through weddings and other faith-based bined media coverage of the facility, in Poland
have interesting urban development projects years to mend. bia and Argentina. On average, BGK ap- there will be no dead season at the facility. events. The chapel can be converted in min- and abroad, in print, TV, radio and Internet
to help stem the tide of social implosion of Another project finance program from the proves one project a week for financing. The operator is already planning several utes to a Christian or Jewish wedding layout. was worth the equivalent of PLN 60 million.
the target areas. The bank lends money at European Union which BGK handles, in five major shows and is confident that the stadium With all the advantages the location offers, it

10 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 11


COVER STORY: Innovative economy

Thou shalt innovate!


Poles begin to realize that business must think new to move forward
B
efore 1939, Poland was renowned for Italy was already 20 years old by the time spite the fact that Greece has much more Furthermore, the report stresses: “The
its technological advances in many production commenced at FSO in Warsaw. favorable weather conditions for growing overall good performance of the innovation
areas. It was for instance one of the When FSO engineers began to experiment tomatoes than Poland. leaders reflects a balanced national re-
few countries that successfully experi- with the Fiat design to take it to a higher search and innovation system. While each
mented with transmission of television sig- level of technological advancement and nothing to brag about country has its own specificities, policy re-
nals, as far back as 1931. A bomber plane, consumer-oriented esthetics, they were Under such political and economic cir- sponses should attempt not only to address
codenamed “Łoś,” designed entirely by dealing with such an outdated concept in cumstances, it is little wonder that 20 years relative weaknesses in national research
Polish engineers, was the most technically the first place that what they eventually after Poland’s entry into the free-market and innovation systems, but also to have There are signals, however, that this
advanced airplane in 1938. Polish designs came up with in 1978, the Polonez, turned economy, there is still almost nothing that more balanced performances across all trend is being limited by the agencies in
of train engines—steam and electric— out to be an exorbitant misfit in the auto- Poland can boast about when it comes to categories of indicators.” charge of distributing E.U. aid. Out of PARP has helped set up 1,300 companies
were world leaders in their day. motive industry—drawing guffaws in the the innovative economy. This is well de- Poland is characterized by the authors as 1,850 persons who applied for money from representing all types of e-business. With
But then came the destruction of World U.K. when some units were sold there. picted by the recent study of the innova- a country whose relative strength is HR the Polish Agency for Enterprise Develop- this the mission of Priority 8.1 has been ac-
War II, and after that Poland’s economy The only foreign market of any commercial tiveness of E.U. member states by UNU- performance. But Poland’s weaknesses are ment (PARP), which administers distribu- complished, and now the agency is in-
was nationalized, along with its research significance that embraced the Polonez to MERIT—Maastricht Economic and social a lack of open, excellent and attractive re- tion of aid under Priority 8.1, only 160 were clined to grant funds to support only truly
centers. The long story of Poland’s inept- some extent was China—thanks only to the Research and training centre on Innovation search systems, a failure to link entrepre- successful. In money terms, out of the innovative ideas for e-business. But they
ness in innovation and industrial design “friendly” relations between the two so- and Technology, for the European Com- neurship with money, and a lack of proper budget of PLN 350 million for 2010, only are few and far between.
began, and in time came to resemble a cialist states. mission. Published in February, Innovation commercial utilization of intellectual as- about PLN 75 million was granted to en- Apart from the shortcomings on the pol-
kind of cultural tradition. Given such history, it is little wonder Union Scoreboard 2010 takes into account sets. The report also found “a relatively trepreneurs. According to PARP, the agency icy level that the Innovation Union Score-
Faced with the postwar demand to re- then that when in 1989 Poland began its performance across 24 indicators, such as strong decline in SMEs innovating in- had to apply stricter criteria for evaluating board 2010 captures (see also the article
build the country, engineers had to devote political and economic transformation the number of patents registered, the house and innovative SMEs collaborating projects submitted for financing, because on page 20) our sources within the busi-
their talents to developing basic aspects of from a centrally-planned economy to a free number of innovative products launched in with others.” It found other dimensions to most of the applicants could not prove in ness angels community have pointed to
the economy, such as civil engineering and market, the country’s entrepreneurs paid the marketplace, expenditures on R&D, be below the E.U. 27 average. any way that their businesses would ever some other problems. It may seem puz-
the steel industry, which in particular was little attention to research and develop- and national programs linking money with break even. zling, but the lack of sufficient knowledge
then viewed as the backbone of social and ment as a means of gaining a competitive innovative research. The study places in the dark Most of the business ideas submitted to of English among graduates of Polish poly-
economic progress. And because of the advantage in the marketplace. The model Poland in the category of “moderate inno- By and large, Polish entrepreneurs learned PARP were not innovative, but were copy- technics is a problem for companies that
reigning ideology, there was little state- of looking to the West for better, more vators” together with the Czech Republic, about the importance of innovativeness for cats of earlier developed models. PARP VP fish for talent among recent graduates. In-
sponsored encouragement to develop technologically advanced products was still Greece, Hungary, Italy, Malta, Portugal, economic development after Poland en- Patrycja Zielińska said in an interview for novation today is delivered through cooper-
products more advanced than those made in force. A factory owner who wished to Slovakia and Spain—countries that scored tered the European Union. This knowl- Dziennik Gazeta Prawna daily that so far ation among specialized research teams.
by the leader of the bloc, the Soviet Union. improve productivity simply had to buy from 10% to 20% below the average for the edge was linked with many E.U. funds de-
So even though engineers at the Polish au- some worn production equipment in the 27 member states. signed to support the innovative economy,
tomotive plant FSO came up with ad- West at a bargain price to replace the even The “innovation leaders” atop the rank- including innovative products as well as
vanced models for the flagship car at that older, exhausted equipment still in opera- ing, with a performance 20% or more business models.
time, the Syrena, the projects were stalled tion at home. With this “new” equipment, above the E.U. 27 average, are Denmark, But the availability of money to support
by the politburo. Today, the advancement company owners could produce more with Finland, Germany and Sweden. Just below innovativeness in the economy created less
and technical sophistication of the work of fewer workers on the production line. The them are the “innovation followers,” with than the desired effect. Instead of being
FSO engineers can be appreciated only by economic results that stemmed from such an innovativeness score from 10% to 20% perceived as a must-have element of an en-
studying the old documentation for the simple replacement of equipment were above the E.U. 27 average (Austria, Bel- vironment in which the authors of innova-
Syrena and pictures of such models as the staggering. But again, what mattered was gium, Cyprus, Estonia, France, Ireland, tive ideas can rely on financial support to
Syrena Sport, the Syrena Mikrobus, and money (to buy the old equipment) rather Luxembourg, the Netherlands, Slovenia develop them into commercially viable
the Syrena 104 Laminat, developed in the than creative thinking. The attitude of in- and the U.K.) The lowest-ranked— “mod- projects, E.U. funds were tapped into by
1960s. difference to creativity, research and devel- est innovators,” below 50% of the E.U. 27 entrepreneurs who lacked any particularly
opment continued unchallenged. average—are Bulgaria, Latvia, Lithuania valuable business ideas but knew how to
innovation unwelcome When the going is good, people’s atti- and Romania. negotiate the complicated application sys-
With a political grip that kept at bay all in- tudes change slowly, and for this one to As the report underlines, the countries tem.
novative thinking and design, Poland in- change there were few incentives even at the top of the ranking share a number of “In recent years many firms in Poland
evitably began to decline into a technically after Poland entered the European Union. strengths in their national research and in- were created just in order to tap into E.U.
backward country. In time, innovative, With unlimited access to all E.U. markets, novation systems. “While there is not one grants,” said Szymon Kurzyca, an expert
modern design began to be perceived as Polish exporters realized their products single way to reach top innovation per- with Lewiatan Business Angels, a network
something that could not originate at home were highly competitive on price with formance, most innovation leaders perform affiliated with Poland’s largest employers’
but had to be bought from the West, in the those from other member states. But the very well in Business R&D expenditures organization. “They were getting grants to
form of a production license. Poland’s de- advantage was not a result of more innova- and other innovation indicators related to start their own companies, consuming
pendence on technology developed by the tive production, but of the big gap in wages firm activities,” the report says. “All of the them, and going bankrupt. This is evident
Soviet Union was universally felt in almost earned by workers in Poland and countries innovation leaders have higher than aver- especially in Priority 8.1, which supports
all aspects of industry, from aircraft con- to the west, and other production costs age scores in the Public-Private co-publi- the creation of e-companies. But when
struction to nuclear power (which ulti- such as utilities. This gap was (and still is cations per million population indicator, people know that they can get financing for
mately was never implemented). in many cases) so huge that Polish ex- [which] points in the direction of good 85% to 100% of the cost of setting up a
Even when Poland was able to buy a li- porters found their products cost-competi- linkages between the science base and company, they are for it no matter whether
cense to manufacture products developed tive when sold in the West even though the businesses. All European top innovators there is a reason why the company should
in the West, the designs were outdated by efficiency of their labor force in Poland was also excel in the commercialization of their be established. It is good from the point of
the time they were introduced in Poland. well below the E.U. average. Differences in technological knowledge, as demonstrated view of those people, but not necessarily
For example, the model for the Fiat 125 labor cost, for instance, allowed farmers in by their good performance on the indicator good from the point of view of the econ-
passenger car that Poland bought from Poland to export tomatoes to Greece, de- License and patent revenues from abroad.” omy.”

12 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 13


COVER STORY: Innovative economy

This type of work requires communica-


tion skills in English on a level that allows
driven by a Nobel Prize ethos, and in a de-
sire to be perceived as distinguished scien-
the chemical and expressed its intention to
place an order worth some EUR 1 million a
time and offer “route recommendations”
to drivers so they steer away from traffic Innovation Union Scoreboard 2010
for crystal-clear communication of often tists they focus on publishing as many sci- year, Bieniek realized the institute could jams on the way to their destination. IBM
complex technical and scientific concepts. entific papers as possible. They forget that not cover the necessary cost for increasing also predicts that servers will be used as a E.U. member states’ innovation performance in 2010
The quality of the knowhow available in once an innovative idea is published, it is production capacity. Bieniek quit the insti- heat source to supplement the energy sys- Innovation leaders perform above 20% or higher of the E.U. 27 average; innovation followers from
Polish polytechnics can be disappointing. in the public domain and they may no tute and established a company with the tems in cities. between 20% above to 10% below of the average; moderate innovator perform from 10% to 50%
below the average; modest innovators perform below 50% of the average.
One source complained that when it comes longer be able to patent it. Nonetheless, help of Academic Incubators of Entrepre- While these predictions are based on
to the science of active packaging (packag- they imagine that they would still have an neurship. With a formal structure, he was market and social trends that IBM expects
ing for food products with chemical prop- edge over the potential competition if they able to sign a contract with the drug pro- will change our lives, what they all have in
erties extending the shelf life of the prod- were the first to manufacture their inven- ducer and issue an invoice. That was in common also is that they are in sync with
uct or providing information about the tion. This is an illusion, as every experi- 2008. technologies that are emerging from IBM
quality of the food inside), only the infor- enced entrepreneur knows, because if you But Bieniek wanted to grow his innova- labs around the world that can make these
mation in English is valuable, while the do not have the intellectual rights to the tion to the point that it would support a innovations feasible.
available information on the subject in Pol- product you will soon see it produced bet- full-fledged commercial operation, with a Many scientists in Poland will find it dif-
ish is riddled with errors. ter and cheaper by somebody else. client roster and R&D. He found financing ficult to accept that such great innovations
Another problem comes from lifestyle Another problem is that universities are through Lewiatan Business Angels and de- are not being developed by scholars in
differences between the new generation of infiltrated by companies searching for in- cided to locate his company, Apeiron Syn- ivory towers, driven by lofty ambitions and
university graduates and older, experi- novations and inventions. When they come thesis, at Wrocław Technology Park. The protected by academic tenure. Instead, in-
enced scientists. Individuals with long- across a good idea, they quietly take it away park itself agreed to cover the cost of the novation is being developed by people who
term academic backgrounds and research to develop it further commercially else- equipment necessary for full-scale produc- embrace life in the marketplace—who un- European performance vis-à-vis main competitors
experience often find it difficult to adapt to where. tion of the chemical. Today Apeiron Syn- derstand technology, but also understand The performance of E.U. 27 against selected countries. The values in the graphs represent the
working in the egalitarian environment of a Unlike in the U.S., where universities thesis is one of the rising stars in the people and their consumer needs. relative performance of the country indicated compared to that of the E.U. 27. E.g. the U.S. in
"2010" is performing 49% better than the E.U. 27 and China in "2010" is performing 55% worse
modern company. They find it especially own a stake in innovative companies they Lewiatan Business Angels stable, with a So far many Polish entrepreneurs may than the E.U. 27.
difficult to accept that the person leading a help to establish, and profit from them, value estimated in the millions of dollars. think the innovative economy is something
project they are working on may be much universities in Poland see no incentive to that was invented by the European Union.
younger than themselves. take that approach. Quite to the contrary, a slow dawn But more and more of them are beginning
Scientists in Poland also do not have the they see innovative members of the faculty U.S. companies affiliated with AmCham to realize that economies have always been
kind of culture that would help them think as pain points, rather than assets, due to have long been advocating the need to im- driven by invention. Behind every great
ahead to commercializing the results of the costs associated with turning an inno- prove national policies for cooperation be- brand, there is at least one great invention,
their research. Even those with excellent vative idea into a business proposition. For tween academia and business, as well as properly executed.
innovative ideas do not know what to do instance, patenting costs, which may run state-sponsored mechanisms for pro- George Parker was a teacher who sup-
next to turn them into a business. EUR 100,000–150,000 in the case of global pelling the innovative economy. But along plemented his income as a part-time rep-
The noble aspirations of Polish re- patents, are viewed as a burden huge with educating decision- and policy-mak- resentative of the John Holland Fountain
searchers can even prove a hindrance to enough for many a university to abandon ers, innovative American companies that Pen Company and sold pens to his stu-
development of innovation. Many are commercialization ambitions altogether. established research and production here dents. But his customers frequently com-
Another problem is have had a huge impact on the way innova- plained to him about the poor quality of
that even if scientists tiveness in the economy is understood and the pens. Parker investigated the problem
understand why they approached in Poland. The main message and found out that the feed-shaft needed a
need to patent their is that innovative products are ones that few improvements. With simple tools he
innovations, the per- are anticipated by the market, and when began to make new shafts for the pens he
spective on how they they are actually delivered there is a de- was selling. Soon he decided to manufac-
are going to benefit mand for them. ture a pen under his own name. He Evaluation of selected criteria
from it does not go In December 2010, IBM, a company that patented his fountain pen and founded a The charts below represent member states' innovation performance across selected criteria that
have critical contribution to the effectiveness of the innovative economy.
beyond the idea of has been innovating for the last 100 years, company capable of producing it on a mass
selling a license to it. revealed its annual list of the “Next Five in scale: the Parker Pen Company. The rest is
This is not the best Five”: five innovations that it anticipates a history of constant design change to suit
approach, because will have the “potential to change the way evolving customer tastes.
final control over the people work, live and play over the next five The Parker example—the chain of
product quality lies years.” The innovations were as diverse as events from consumer demand to innova-
within the reach of their areas of application. A technology for tion, patent and production—is character-
whoever buys the li- beaming 3D holograms in real life is sup- istic of nearly every commercially success-
cense, instead of the posed to change not only the way people ful product, whether aimed at the mass
proprietor. use electronic entertainment (with holo- market or a niche market. With the appear-
The systemic fail- gram display technology in mobile phones ance of business angels organizations (see
ure of the academic and computers) but the way participants in the article about the AmCham CEO
system to embrace video conferencing interact. A battery Forum in March, on page 23), as well as
what it does com- technology enabling 10 times longer bat- seed capital providers, global manufactur-
mercially is best il- tery use on mobile phones and laptops ing firms and technology giants (which
lustrated by the story than conventional batteries today, and usually have cooperation programs in place
of Michał Bieniek. A power technologies that use kinetic energy, with polytechnics), more and more entre-
young chemist at the will make electronic devices even more preneurs and aspiring innovators in Poland
Institute of Organic permanent in our lives. New network tech- are learning about the need to be part of
Chemistry of the Pol- nologies will enable sensors and measuring that process in order to be successful.
ish Academy of Sci- devices in our computers to convey data When its hour comes around at last,
ences, his research from real life to data centers where scien- Poland may bring forth an innovative prod-
led him to create a tists will access it in a systematic way, uct that is a game-changer on the global
chemical that is thanks to new algorithms, and use it to marketplace.
sought after by drug learn about important aspects of our envi-
companies. When ronment. Computers, we are told, will also
one company tested be able to analyze traffic conditions in real Tomasz Ćwiok
Charts: Innovation Union Scoreboard 2010

14 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 15


COVER STORY: Innovative economy

Ten tips to consider before you


launch your own startup
Rafał Stroiński, a partner in CMS Cameron McKenna’s Warsaw
Corporate Department who is both a Polish lawyer and a member of the 7 don’t throw
your money away

ww.amcham.pl
Your startup may be your first
New York bar, has studied startups in the Silicon Valley and Poland. He business venture, but it does not mean
combined theory with experience to compile a list of dos and don’ts that you need to have an expensive sofa in
best suit the Polish reality. your office to impress your potential in-
vestors and clients. The ideas your

1 Whose idea was this?


Before any idea finds a fully practi-
cal application for business, we
startup is working to develop into a busi-
ness are the assets your potential in-
vestors will look at. But you may find
share it with friends, talk about it with ac- yourself regretting having bought that ex-
quaintances, take it apart and put it back pensive sofa when you run short of cash
to pay your bills or pay for other services
Download this magazine! together with potential business partners
and other individuals who, we think, will that are vital to your business develop-
ment.
American Investor is available in full give the idea a commercial edge. In time
the idea may look quite different from the
as a pdf for download from the
6 stick to your guts
way it looked at the time of inception. It is
www.amcham.com.pl website. Go to vital to keep control of whose idea you are
talking about and not exclude people
A startup is not a good place for
"About Us" in the horizontal menu, whose intellectual input was critical to its
individuals with a high aversion to
risk in business. You may buy an expert’s
and choose American Investor commercial development. opinion about almost anything these
Magazine from the pop-up menu. days, but don’t get carried away by too
You can download past 2 too many partners
Any extension of ownership in a
many experts’ opinions, especially if you
get them for a discounted price or for
issues of American Investor dating company decreases the value of free. Stick to your guts and remember
back to October 2010. shares held by each partner. But perhaps that a startup is about taking risks.
not everyone who you think deserves a
share in the startup is going to have a
vital input to the startup’s day-to-day de-
velopment. Perhaps they deserve some
remuneration for what they have done,
8 don’t ignore new
sources of money
Entrepreneurs behind startups
maybe some option rights but not imme- are most often determined to make it on
diate ownership. Make sure that whoever their own, according to the original plan,
you choose for your shareholders bring without looking at additional opportuni-
value to the startup. Plus, too many own- ties that may come their way, especially if
ers make a company unmanagable. those opportunities come from highly in-
too-complex stitutionalized sources. But Poland is a
3 legal structure
You may think that setting up your
country where public financial sources
are available through numerous funds,
managed by such institutions as the Pol-
startup in a tax haven is a good idea. Wait ish Agency for Enterprise Development
until you know your startup is a viable (www.parp.gov.pl) and others. Sure, it
business. In fact it is at risk of not taking takes an effort to fill in the application
off. It needs time to mature in the busi- form and show you meet the criteria. But
ness world, and you need to focus on that remember that even a small cash injec-
and not on the least expensive taxation tion into your business may make a big
structure. After all, you may find it irk- difference. Every zloty may be worth its
some to track down the right notaries in weight in gold for you.
Cyprus or talk to the register court in the
Netherlands when your primary goal
should be to develop your startup into a
business. 9 network, network,
network!
People with ideas are often intro-
American Investor 4 keep things in order
A mess, no matter what you do, im-
verts. But they need to remain open to
other people and human networks. A
Your ultimate source to AmCham Poland
pedes your functioning. And effi- lawyer you know may know a financial
cient functioning and fast response to the whizz who could help with the financial
situation, including enquiries from poten- strategy your startup needs—but only if
Call to find out about advertising opportunities +48-22-520-5993 tial investors, is the key to the success of the lawyer knows about your problem.
your startup. If they find your documents Lawyers often can see beyond the legal
are in a mess or you cannot produce aspect and may have a unique grasp of
something that they request on time, it the business side of your startup. A grow-
will only create a negative impression ing number of lawyers in Poland under-
about your startup and the people behind stand risk management and may offer in-
it. It is about people’s psychology and teresting solutions for you. Plus, remem-
common sense and you cannot undo it. ber that if you manage to get someone
onboard with high esteem in the busi-
5 keep things formal
People involved in startups are
often, by their entrepreneurial na-
ness world, the credibility of your startup
will get a huge boost. It is invaluable!
ture, not very sensitive to formal proce-
dures a business requires. The lack of
documentation that, say, your startup has
the IP rights to the things it produces,
10 control
burn rate
your own
Working for your startup should
will surely impede its further develop- give you fun and fulfillment. You have to
ment. Formalities are important and if make sure that what you do is exactly
left unattended may lead to conflicts be- what you want to be doing. Don’t let
tween individuals who have contributed yourself be overridden by emotional
to the development of your startup and stress. If you do you may as well get your-
impede further business growth. self a different, more secure job.

16 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 17


COVER STORY: Innovative economy

Global firms are active globally and see Rzeszów, plastics in Tarnów, IT in Gdynia I think there is a clear need for identify-
business in broader terms than a one-time and Rzeszów, and the maritime industry in ing areas of economy with highest innova-
cash injection to a given R&D project. It Gdynia. On the other hand, R&D centers tion potential and focus support on them.
seems that corporate income tax incentives are developed across Poland without any re- For instance, the E.U.-funded Innovative
for companies that invest in R&D in Poland gard to whether their location will actually Economy Operational Program seeks to
not only could help create more R&D cen- help them tap into the knowledge base cen- support companies’ activities aimed at
ters in Poland, but could also increase tered in the given region. R&D capacities development. Meanwhile,
Poland’s CIT revenue, because such in- the tax system in Poland offers premiums
centives would be available only to compa- at the level of national policy, what is to companies that act to the contrary. For
nies that pay CIT in Poland—which as- missing in poland that would help de- instance, companies can get tax deductions

A government job
sumes that global companies find it prof- velop the innovative economy? if they buy knowhow but they get no tax de-
itable. The European Commission is cur- Innovativeness is a broad term and includes ductions if they invest in R&D. Companies
rently running consultations on how the fi- many sectors of the economy. R&D is only that invest in R&D can only include the
nancial instruments for R&D should look one aspect that defines innovativeness and cost in their overall business costs like any
like after 2013 so that more R&D results competitiveness. Along with R&D, other im- other company. Another problem is that the
are successfully implemented. This may portant aspects are the availability of busi- Innovative Economy Operational Program
American Investor's Tomasz Ćwiok talks with Magdalena Burnat-Mikosz, a be a good occasions also for Poland to re- ness infrastructure, the readiness of scien- promotes the creation of industry clusters

partner at Deloitte who is head of R&D and Government Incentives for Cen- view our strategy. tists to cooperate with business, and adapt-
ing the education system to new economic
on the one hand, but on the other hand it
promotes the creation of R&D operations
tral Europe, about problems with implementation of a coherent policy for What regions of poland are most inno-
vative?
challenges. But the most important thing is
that innovativeness is not perceived as a goal
by companies that create at least 10 jobs
and invest in research infrastructure.I
developing the innovative economy. R&D centers are dispersed in Poland. But
Wrocław is a good example of a city that has
in itself. Without determining the goals that
innovativeness should serve, it is difficult to
think this process should be optimized on
the central level so it is in sync with a na-
the Innovation Union Scoreboard 2010 to R&D is minuscule due to the cost and incorporated R&D into its development determine financial mechanisms that would tional strategy for development of the in-
says that in the long-term perspective the risk factors involved. SMEs have a dif- strategy. It created the EIT+ research cen- help support reaching those goals.I think novative economy. A government czar with
the technological gap between ferent focus, on maintaining cash flow, ter, which promotes cooperation in R&D that today the public funds earmarked for the rank of deputy prime minister to over-
poland and other european countries and if they choose a new technology to between businesses and academia. There supporting the innovative economy are dis- see the implementation of this strategy
will hobble poland’s economic com- grow they tend to use one that has been are some regions in Poland where clusters persed among dozens of programs that are would be the best solution.
petitiveness. does this mean that tried before, to minimize risk on their specializing in certain technology have all aimed at supporting innovation but lack
poland’s relatively low costs of labor way to meeting their business goals. It is been established: aviation technology in one coherent strategy.
and production will lose their signif- nothing Poland-specific, but a strategy
icance? used everywhere. The problem is that big
In a long-term perspective, the advan- concerns centralize their R&D centers, in
tages of low costs of production will not most cases outside of Poland. This is why
play any decisive role in shaping the com- their regional subsidiaries lack formal
petitive aspect of Poland’s economy. Even competencies and scientific potential to
the BRIC countries (Brazil, Russia, India innovate. A thorough analysis of the situ-
and China) seem to realize that their ation will perhaps lead to some conclu-
cheap labor will not last for long, and they sions as to what needs to be changed to
are intensifying their innovative skills. A improve the situation so that we attract
recent study from the World Intellectual R&D to Poland.
Property Organization into the number of Yet another problem is that most of in-
patent submissions in 2010 showed over- centives available for development R&D
all growth of 4.8% in patent submissions works in Poland promote buying
as compared to 2009. But the number of knowhow from third parties. It seems
patents submitted in China grew by over that the lawmakers believe that innova-
56% and in South Korea by 20.5%, while tions developed abroad are more worthy
in the E.U. and the U.S. they dropped. of being put into commercial use in
Today as many as 7.6% of all patents are Poland than innovations developed inside
registered in China. This means that in companies. That really does not make
order to be competitive, Poland has to be sense. But the fundamental thing is that
innovative in many different ways. the decision of corporations to invest in
R&D in a given location is conditioned by
one of the conclusions by the authors is a part of the global economy, and Polish several factors, including financial aid avail-
of the Innovation Union Scoreboard 2010 scientists and scientific centers can pitch able in a given location, the scale of re-
is that polish companies have one of for research business from foreign research search in question, the security of the R&D
the lowest levels of cooperation be- institutes. They have the potential. For in- program. Poland today is not an optimal
tween state-owned r&d centers and stance the International Collegiate Pro- destination of choice for R&D. It has noth-
academia. does this mean that busi- gramming Contest in 2003 was won by a ing to do with the quality of researchers and
ness cannot find good partners to work team of Polish mathematicians headed by scientists available in Poland, but with
with? University of Warsaw professors Jan Madey business conditions for such ventures,
There is no one reason why this does not and Krzysztof Diks. mostly related to tax regulations. Even with
work properly. Academia lacks enough de- Another problem is that there is not the relatively low cost of human resources
termination to work for business, but on enough demand for R&D services in in Poland, the main problem is the lack of
the other hand business also has its stereo- Poland. The economy is comprised in bulk well designed financial incentives for com-
types about academia. For instance, a big of small and medium-sized enterprises. panies who do R&D in Poland and sell in-
company that commissions research will Big companies make up only 0.5% of all novations in Poland and abroad. This is why
usually want to retain the intellectual prop- companies. What is more, among SMEs, companies are more inclined to establish
erty rights to the resulting invention. Sci- over 95% are micro-firms that employ their R&D centers in Hungary or the
entists find that difficult to accept. Poland fewer than 10 people. Their drive to resort Czech Republic rather than in Poland.

18 AMERICAN INVESTOR APRIL 2011


MONTHLY MEETING: Innovative economy and economic policy

rent system of subsidies for innovation must ministration approaches the economy—that tions in the defense sector, are anti-innova-
be improved, and tax incentives must be in- is, how ineffectively and often irrationally it tion. We have to find a way for a coordinated
troduced to a larger degree. Wherever possi- treats economic issues in the lawmaking approach on the part of different ministries
ble, best practices need to be set out and process. “We need to improve general gov- to the process of lawmaking and the innova-
adopted from the countries that excel at ernment policy toward the economy as tive economy.”
leveraging innovation to drive economic such,” Kleiber said. “We have to put in place
growth. better national governance mechanisms at low social capital
the central government level, and we have to
deep-rooted disregard improve the methodology of how we create For Kleiber the importance of the develop-
law. There is not much consolation in the ment of human capital in boosting a nation’s
This problem may be even more difficult to fact that many countries have a similar situ- pro-innovation attitudes seems an obvious
solve than it sounds, because a disregard for ation to Poland. But in Poland it is really ir- point. “The bigger the capital the bigger the
innovative thinking is deeply rooted in the relevant the way we make law generally. The chance that Poland will succeed economi-
Polish culture. According to Prof. Michał execution of the law is another matter, but it cally,” Kleiber said. Meanwhile, when it
Kleiber, president of the Polish Academy of also has an impact. So all those factors play a comes to adult training and education,
Sciences, who was the keynote speaker at very important role.” Poland has one of the lowest ratios in the
the AmCham Monthly Meeting in March, European Union. “When you take the work-
this is the weakest points of all contributing no big picture force in Poland, only 5–7% of employees un-
to Poland’s low innovativeness ratio, which dergo ongoing schooling of any sort,”
is plain to see in a statistical comparison of Another problem that has a negative impact Kleiber said. “Other countries in Europe, a
Poland with other E.U. countries. Poland on the development of innovativeness is the group to which Poland aspires in a sense,
ranks even with the Czech Republic, Hun- lack of a coherent approach to different as- cover up to 50% of their workforce with dif-
gary, Italy, Portugal and Slovakia. Countries pects of innovativeness across different gov- ferent types of education programs at work.
at this level are often referred to as “moder- ernment ministries. While the Ministry of This is an essential message to workers that
ate innovators.” But, Kleiber pointed out, all Economy is the main power center for stim- they have to upgrade their skills and knowl-
these countries are well below the E.U. av- ulating implementation of pro-innovative edge to be productive and progress with the
erage, which means that they are actually solutions in government policy, it does so in overall progress of the economy.”
poor innovators. disregard to the role that the Ministry of When it comes to social capital, Kleiber’s

From brawn to brains


Speaker Prof. Michał Kleiber, president of the Polish Academy of Sciences with Rick Lada, AmCham Vice Chairman The key to Poland’s poor innovation score Science and Higher Education plays in the criticism is focused on the lack of under-
lies in the past, Kleiber argued. “For histori- equation. In turn, the allocation of financial standing of how important it is for a society
cal reasons, Poles do not appreciate the sig- support for innovation development from to teach and promote the art of collaboration
nificance of innovation these days,” he said. the E.U. is in the hands of the Ministry of between individuals. “If I were to select one
“It is culture, not politics, that determines Regional Development, which acts on its major problem which Poland faces in terms
the success of the society. We have to praise own priorities without synchronizing its ac- of the development of its economic potential

To find its place in F


or the past few years Poland has come on both micro- and macroeconomic levels.
across as the European Union’s
young economic powerhouse, able to
When the experience of AmCham mem-
ber companies is studied, it indicates that
“It is culture, not politics, that determines the success of the soci-
the innovative crank out positive growth in gross domestic
product at a time when most other
the innovative environment in Poland, de-
spite significant improvement, still has
ety. We have to praise innovators, we must find ways to promote
innovators, we must find ways to become proud of those who
economy of the economies in the E.U. had negative growth.
But this robustness, experts say, has been a
result of the relatively low cost of labor,
quite a way to go. One area in which Am-
Cham sees a great opportunity as a driver of
growth is cooperation between industry and
have succeeded in innovation. The lack of those things is a real
future, Poland which in turn has to do with undervaluation
of the zloty against the euro, rather than any
academia. Compared to other countries in
the European Union, Asia and North Amer-
weakness of the Polish society.”
must change its particularly smart approach to generating
revenues by coming up with innovative
products and services.
ica, this type of cooperation is not utilized to
a sufficient degree. Barriers remain, includ-
ing mental ones, which discourage market
innovators, we must find ways to promote
innovators, we must find ways to become
tivities with other ministries. When it comes
to implementation of IT infrastructure in
in the future, I would probably point to the
low social capital,” he said. “Again, this is

mindset to foster While being commercially creative is not


an easy task, cheap labor will not remain
participants from effective participation in
the system. AmCham believes that support-
proud of those who have succeeded in inno-
vation. The lack of those things is a real
central administration and government-run
agencies, that is the task of the Ministry of
historically conditioned, but that is no con-
solation. We have to change the way we edu-

collaboration, from Poland’s competitive edge forever. In fact,


the business community in Poland is in-
creasingly worried about the country’s
ing entrepreneurship and innovation in
Poland demands systemic changes as well as
institutional environments, such as science
weakness of the Polish society.”
This should prompt questions in the pub-
lic mind about what the competitive advan-
the Interior, which, again, acts on its own. In
general, there is no coordination between
different ministries when it comes to imple-
cate people so they learn how to collaborate
with one another, how to develop the appre-
ciation of working with others and the un-

government growth potential in the years to come.


Poland needs to plan its growth within the
parks and technology transfer centers, that
allow for concentration of resources:
tage of Poland will be 10 years from now and
how Poland will be attracting foreign invest-
menting regulations governing the new
economy.
derstanding of the importance of collabora-
tion.”

ministries context of the world economy, from global


manufacturing to foreign relationships. And
within the broader context of international
human, capital and organizational.
Poland, like other countries in the region,
has to overcome the European paradox:
ment. “There are hundreds of questions
which should be put forward to politicians,
but no journalist asks them,” Kleiber said.
That is only the tip of the iceberg. The
same neglect in the legislative process leads
to creation of laws that ignore the complex-
Kleiber also noted that while the level of
trust is at its lowest today, especially when it
comes to trust in authorities, unlike in the

on down, competitiveness, one of the most critical


factors that must be focused on is innova-
while good at basic research, science has to
go a step further to encourage the right fi-
“This is because of the lack of understand-
ing of the economy and its problems, in-
ity of innovation implementation altogether.
“Ministries responsible for implementing
past there is now no reason why people
should not trust the institutions of a demo-

a leading scientist tiveness.


Experts say that the ability to innovate is
an absolute must to ensure the continued
nancing. In order to do that, Poland needs
an innovative strategy that breaks down
structural and bureaucratic barriers. It must
cluding the issue of innovativeness in the
economy.”
Another impediment to Poland’s success-
innovation do not talk to one another,”
Kleiber said. “The result of this is that
many crucial laws, including public procure-
cratic society, and trust one another. But
they do not. “This is something which has
to be changed,” Kleiber noted. “But this will

tells AmCham growth of the Polish economy. This ability,


however, is shaped by complex relationships
think about how it can develop new legisla-
tion that really drives innovation. The cur-
ful embrace of an innovative economy is
“deeply rooted” in the way the central ad-
ment, public-private partnership, and the
offset law which compensates for acquisi-
take time.”

20 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 21


MONTHLY MEETING: Innovative economy and economic policy AMCHAM CEO FORUM: Business angels

mad money try. Kleiber said that it is natural that cer- The next niche worth investing in, ac-
tain regions are more innovative than others. cording to Kleiber, is carbon-based chem-
Poland has laws that commit both the public “If you look at Europe and the U.S., there istry. Again, the issue is to cut emissions.
and private sectors to invest in R&D. The are places that are highly innovative and Looking ahead at Poland’s plans to de-
problem with the regulations, however, is places that are not. It is a fact of life. We velop a nuclear energy program, Kleiber said
that they do not work. Kleiber said that should not try to make the entire country an that it offers opportunities for innovation in
Poland does distribute huge amounts of innovative village. It is not going to work. We the area of nuclear and coal-based energy
money through grants to R&D, but in fact have to focus on building innovativeness generation. “It is a very sensitive, sophisti-
the money that comes from European where it should be, because there are re- cated, and promising area,” he said. “This
Union cohesion and structural funds is gions that have good links between acade- gives new opportunities for intelligent
squandered. mia and business and financial institutions, power grids and dispersed energy systems.”
Trying to invigorate R&D by offering and there it is relatively easier to establish
grants to selected research programs cannot what it takes for a successful innovative complementary assets
be effective, Kleiber said. “Grants are not a company.”
good way to stimulate the growth of R&D The last stereotype Kleiber identified is a But apart from specific areas in which
projects because behind every grant there is belief that scientists are responsible for in- game-changing innovations would benefit
an administrative decision,” he argued. He novation. “Scientists have to be consulted, the entire economy, the foremost problem is
added that the process of doling out grants invited to collaborate in an innovative that when it comes to boosting innovative-
is a bureaucratic one and by definition is process,” he explained, but the fate of inno- ness there are certain complementary as-
never competent, “even if the bureaucrats vations should be in the hands of those who sets, such as openness of the society, pro-
ask experts for advice.” Instead, business take the risk of inventing things. “Entrepre- motion of openness, and promotion of gen-
should be encouraged to invest in R&D by a neurs are the leaders of innovation.” eral creativity in the society. All of those
system of tax incentives. Such a system has things are important in terms of shaping the
yet to be invented. In order to do so, Kleiber the way forward general attitude toward innovation. The lack
noted, Poland should resort to best practices of positive attitudes about innovative think-
The idea of business angels is slowly taking off in Poland

A life between vision and risk


already developed by other countries. Kleiber made the point that if innovative- ing in Polish society is a problem.
ness is to be meaningful for Poland’s econ- And as a society, Poles need to have the
harmful stereotypes omy, pro-innovation policies should focus on courage to dream of great ideas and prag-
selected areas of the economy. As he ex- matic ways to implement them. “This is
Another systemic problem that impedes the plained, “No single country, not even the something that America has excelled in,”
creation of a good legal framework for U.S., can excel in being innovative in every- Kleiber told the audience of businesspeople
boosting innovativeness is false stereotypes thing.” from American companies. “Making dreams Before they become a force behind the innovative economy business angels have to learn
that lawmakers have when it comes to inno- For Kleiber, the critical sectors of the come true is a symbol of American entre-
vativeness. Among them if a belief that only economy in which innovative breakthroughs preneurship and the freedom of economic to live with risk while aspiring entrepreneurs have to learn to understand their objectives
individual entrepreneurs may be innovators. would make a difference for the entire coun- activity. People there know how to dream.

T
“Big companies are innovators, too,” he try are those connected with the need to re- This is perhaps something that we can learn he institution of business angels— it takes two get for consideration usually lack good busi-
pointed out. “The iPhone was not built in a duce Poland’s emissions of CO2. The coun- from you.” individuals who take the risk of in- In an age when outside-the-box ideas can ness plans. When potential investors crunch
garage.” try is obliged to do so, but being dependent vesting in startups in return for change markets and even the world as we the numbers, they run into a motivational
The next harmful stereotype on Kleiber’s on coal as the primary source of energy for above-average profits if the startup takes off know it, offering financial assistance to a bump when they realize that inevitably they
list is that only sectors of the economy like the power sector, the obligation amounts to commercially—play a recognized role within group of enthusiasts who think they have a will be in the red.
biotech, IT, or nanotechnology can be inno- a dramatic change in the way Poland pro- the economic equilibrium in the U.S. and great business idea—and the only thing they On the other hand, people with ideas com-
vative. In fact, Kleiber said, innovativeness duces energy. “Poland is also a country Western Europe. In Poland, however, the need to prove it is money—may be a very lu- plain that they do not get enough time to run
can bring groundbreaking change to any which sits on coal,” he said, “and therefore concept is in the initial stages of develop- crative proposition. At least, the panelists their presentations to potential investors
sector of the economy, and therefore all sec- is determined to use it as an energy source ment. agreed, that is what the people with the properly, and the expectations that the people
tors should recognize the importance of in- for at least the next 20 years. Everything The AmCham CEO Forum in March was ideas—the would-be entrepreneurs—think. with money have are overoptimistic when it
novativeness and support it. that relates to clean coal technologies devoted to analyzing specific issues sur- But the reality of raising money by startups comes to the risk they should take and the
Another universal illusion is that innova- should be a priority for Poland. Poland will rounding business angels in Poland. The is quite different. As Tomasz Wróblewski profit they should expect. According to Błażej
tiveness has to be spread more or less evenly not give up on coal for the next 10 to 20 panel of experts consisted of AmCham Vice said, it is never a problem to find people with Moder, this is because business inexperience
in geographic terms across the entire coun- years.” Chairman Rick Lada, a Silicon Valley veteran ideas. Nor is it a big problem to find people (represented by the people with ideas) meets
Tomasz Ćwiok who brought Apple computers to Poland and who are willing to put their surplus money up with business experience (in the form of
Motorola to Kraków and is CEO of the inno- into a hot investment prospect that they are the angels), and the result is skepticism.
Meet the speaker Prof. michał kleiber has been the pres-
ident of the Polish Academy of Sciences
Poland in the E.U. Joint Research Cen-
tre as a member of the Board of Gover-
vation-driven company Telesto Mist Sys-
tems; Błażej Moder, vice president of the
positive will bring returns no other invest-
ment mechanism available in the market-
“The people with ideas do not have a vision
of how their ideas may develop commer-
since 2007 and has just begun his second nors and in the Sustainable Growth Łódź Regional Development Agency and place can bring. The real problem is to cially,” Moder said. “It is a difficult process to
term, ending in 2014. Steering Committee of the 5th Frame- head of the Business Angels Guild head- match people with business ideas with peo- explain to them that they need to have this vi-
Kleiber, a mathematician, has headed work Program. ple with extra cash who also share the same
the Department of Computational Sci- In 2001–2005 he was Minister of Sci- quartered in Łódź; and Piotr Wilan, founder sion. So this is a frustration for them.”
ence at the Institute of Fundamental ence and Information Technology in the of the Pascal publishing house and a co- vision of how to best develop the business in As Moder explained, “On the other hand
Technological Research of the Polish Polish government. In 2005, he was founder of Onet.pl, who after exiting Onet question and sell it on at a profit. This can people with money do not want to waste their
Academy of Sciences since 1986. elected a member of the European Re- happen, but it is a long and winding road.
He has lectured and conducted re- search Council and chairman of the Eu- became a business angel and now has stakes money and their time on learning about ideas
search at numerous universities around ropean Materials Forum. in a dozen innovative companies in Poland. that have no commercial potential. They do
the world, such as the universities of In 2008–2010 he was a member of the The panel was moderated by Tomasz Frustration not want to talk about potential business
Stuttgart, Hannover, Darmstadt and Governing Council Steering Committee
Bochum in Germany, Berkeley, the Uni- of the European Science Foundation in Wróblewski, a journalist with significant ex- Wróblewski said that on investors’ blogs on projects that are not prepared or developed
versity of Connecticut, and universities in Strasbourg. He also served as a pro bono perience in the news media in the U.S. who Bloomberg there is a lot of frustration ex- for a kickoff. They also want to see dedication
Tokyo and Hong Kong. science and technology advisor to the is now editor in chief of Dziennik Gazeta pressed by both sides of the equation. People to the commercial success of the project on
In 1998–2001 Kleiber represented President of Poland (2006–2010).
Prawna, one of the largest dailies in Poland. with money complain that the projects they the part of the project authors. Investors ex-

22 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 23


AMCHAM CEO FORUM: Business angels

pect that innovators are ready to devote their money and investing it,” he explained. “Ven- puters, which was found to violate copyright them on time, it means that everything is business has a valuable product that can be idea is intended to become a part of. “Per-
resources to the successful commercial de- ture capitalists have a fee guaranteed for and finally was outlawed. progressing the way it was meant to sold to a bigger investor.” haps a different type of investor is needed,”
velopment of the project. Having an idea to what they are doing, so they are getting re- Another big question for business angels is progress.” he said, “or some risks are not acceptable to
play with on the marketplace is just not warded no matter what they do. If the venture whether the people behind the new product Wilan said, however, that smooth realiza- trust is a must the business angels who have seen the proj-
enough for them. So they are frustrated is successful, they get a portion of the future really can deliver commercially. Wilan said his tion of milestones does not automatically Along with this comes the issue of the mu- ect. There can be plenty of reasons why, but
about it as well.” fruits of the venture.” concern is always about the individual who is mean that they do not need reconsideration, tual trust between the people with ideas and it does not mean that there is something
But according to Rick Lada, a lot of the According to Lada, there is therefore a big going to be the leader of the project. “Is this because it is always good to think, at every the business angels. Błażej Moder said that structurally wrong with the business pro-
frustration that people with ideas have is be- difference between a business angel and a person really able to devote a part of his or stage of development of a new business, how too often people with ideas fear that when posal. Not every business attracts the atten-
cause of their lack of understanding about venture capitalist: “In extreme cases, their her life to this project?” Wilan said. Lada things can be done in a better and more cost- they reveal them at the presentation with po- tion of every business angel.”
the people they are talking to. “Business an- behaviors can be very different. The venture agreed that the proposed product or service effective way. tential investors, their ideas may be rejected But even when their idea is rejected as
gels, just like any other investors, are out to capitalist can be irrational, because since he is one thing, but there has to be a group of Lada pointed out that even with a well-de- for financing but picked up by the people structurally wrong and one that will never
make a profit,” Lada said. “There is nothing is getting big rewards, he may want to swing people behind it who are willing to take the signed roadmap to success, there may be dif- who rejected them and executed under dif- take off in the real world, the authors of the
necessarily friendly or angelic about business for the home run. The business angel is mission upon themselves and execute the ferent skills needed at different stages of ferent circumstances with different people. idea should not give up if they really believe it
angels.” probably going to be more rational and is plan. project execution. “There are people who “We are still living in a culture where prop- will work. “This is something the innovators
Piotr Wilan said that the problem is that going to be looking for a good exit from the But the will and determination to succeed have the experience to take an idea from the erty rights are perceived as not adequate to often do not want to hear,” Wilan noted. “But
while there are a lot of ideas for business investment, since it is already a high-risk is not all that business angels look for. “It is initial stage and commercialize it,” he said. effectively protect the rights of inventors,” again, a business angel can be wrong.”
around in Poland, bare ideas are not what venture anyway. And the amounts of money really good when the people who are propos- “That is not necessarily an easy thing to do. Moder said. “This is a huge challenge, to Lada said that there are many examples
business angels are looking for. “Every great are different, too. A business angel typically ing a new venture actually have a lot of expe- For the overall success you may need to create an environment where people with where business angels were wrong about
idea for business should go together with a throws in between USD 20,000 and USD rience in the field,” Lada said. “It is nice change the CEO, because the person who ideas can feel secure when they share their ideas that led to the creation of great busi-
person who is capable of executing it,” Wilan 200,000 in the U.S., while a venture capitalist when they have perhaps worked for a big cor- had the idea for the initial stage may not be ideas with potential investors. This is a very nesses. “There was an extremely successful
said. “It is about personal responsibility for looks at investments of a minimum USD 1 poration or were part of a venture in the past. the right person to lead the company to important aspect of developing the innovative company that got started on the 140th try by
developing the idea into a commercial suc- million.” Now they have some new innovation, but they change from a turnover of USD 1 million to, economy as such.” the innovator,” he pointed out. “So 139 busi-
cess. It is about the execution of the idea.” Wróblewski said that according to know the industry the innovation is going to say, USD 20 million.” In other words, it takes But Wilan said that this problem reveals a ness angels told the innovator no.”
Bloomberg, the average angel investment in be a part of. The inside-and-out knowledge different skills, approaches and attitudes, and common misunderstanding among the peo- Lada added that real life is the best verifi-
money 2010 in the U.S. was USD 30,000. of the industry is essential. They have to business angels may demand that change at a ple with ideas about the whole concept of cation of whether business ideas are good or
While would-be entrepreneurs seem to have know what the industry wants.” certain point. business angels. He said that stealing ideas is bad, and innovators and business angels
overrated expectations regarding the impor- Big questions Having said that, Lada pointed out that
tance their business ideas may have for po- When meeting people with ideas, business this requirement also applies to the business Even when their idea is rejected as structurally wrong and one
that will never take off in the real world, the authors of the idea
tential investors, they also seem to over- angels have their ways of finding out whether angels: “When you as a business angel have
charge when it comes to the amount of the people can really deliver commercially. this experience, and you know the industry
money they wish to raise. “It is typical for
people to ask for PLN 2 million when usually
For Wilan the most important aspect of the
presentation is whether or not it embraces
and have the right contacts in the industry, it
helps. One of the responsibilities of a busi- should not give up if they really believe it will work.
they need PLN 200,000,” Wilan said. the strategic direction in which the company- ness angel is to try to help out the guys who
He noted that every business idea has to to-be has to develop in order to succeed run the company you have invested in. It is Another aspect of business control is the not what business angels are after. “They should be ready to take the try. “As many as 9
be developed gradually, with as little cost as commercially. First come questions about the really good when you understand entrepre- exit strategy for business angels. Even those look for people with whom they can form an out of 10 businesses fail, which means that
possible. According to Wilan, “In many cases new product or service: “What need in the neurialism and the workings of it. Then you with a perfect understanding of the business alliance for the mutual benefit of all individu- there are a lot of good ideas that get support
PLN 100,000 or even PLN 50,000 is enough marketplace does the new product fulfill?” become a guardian angel who brings together their company is in do not wish to be involved als concerned,” he said. “It is about finding from business angels but somehow cannot
to start and get to the point of delivering Wilan asked. “Why is this product useful, and all the skills and contacts necessary for the in it forever. Lada said that often entrepre- people who can execute their business idea make it higher,” he said. “If you are a busi-
sound proof of the concept.” He said in- for whom? The answers must be convincing venture to succeed.” neurs may have the intention to start a family commercially.” ness angel, be prepared to lose your money
vestors do not want to put too much money that there is some demand for the product in business that they do not intend to sell. “If Moder admitted that a huge focus of an- too, and select carefully in order to increase
into a startup, because at such an early stage question.” Business under control you invest in that, you have sunk your money gels networks in Poland is on building trust the probability that you are going to see a re-
of commercial development of an idea, risks Lada observed that when it comes to the All panelists agreed that it is in the best in- and lost it. When they just do R&D and do between the providers of business initiatives turn on your investment. If you are an inno-
are everywhere. “They are execution, people, proposed product, special consideration has terest of all sides concerned that they feel not commercialize anything, and no bigger and the providers of financing. For instance, vator, stay away from people who are just
markets, and business,” he explained. “Busi- to be paid to the specifics of the marketplace they are in control of the development of the company is going to buy it out, then you lost many networks check the credibility of indi- throwing away their money and putting a lot
ness angels have to limit the risks, and one of the product is going to be a part of. “It may new venture. For business angels, the con- your investment. So as an angel investor, you viduals who want to become involved as busi- of pressure on you in order to get a quick re-
the aspects of limiting risk is to lead the de- be a wonderfully innovative product, some- cern is obvious. Lada said that business an- have to make sure that potential conditions ness angels. The Business Angels Guild, turn on their investment, when they have no
velopment in such a way that it requires as thing that people want to have,” he said. “But gels know what they want and are ready to for your exit are in place.” which Moder heads, does the same. “Our idea what the industry is all about and the
little money as possible. If you invest in you need to pose a question whether or not have their way in the company they invested Lada noted that one solution is when busi- mission is to build trust between investors situation that your startup is in.”
stages and if you really know what is going on this is a regulated market segment and in. For instance, they may be determined to ness angels have seats on the board of the and innovators,” he explained. “Things will
in the market strategically and in the com- whether or not the regulations allow for inno- interfere with the company’s affairs to the startup. never work out if there are people in the
pany, then you are in a position to limit the vation. There are some segments of the mar- point of running the CEO out of the com- Wilan agreed that an exit strategy for the equation who distrust their business part-
risks.” ketplace that are so regulated that they do not pany if they feel that the CEO is not perform- business angels has to be one of the mile- ners.”
For Lada, entrepreneurs who look for allow for innovation. They have to fit into a ing up to expectations. As he said, “They are stones set up for the company’s develop-
money from business angels have to under- standard. Standards have been created on the determined because they have invested a big ment. It is important for the investors, as rejection is not the end
stand the point of the business equilibrium basis of previous technology, and it can be chunk of their personal savings and want to they never take over the majority stake in the All panelists agreed that people with ideas
they are trying to tap into, and adjust their fi- that if this innovation does not fit into the have the highest probability that they will see company, because the creator of the idea for should apply for financial help to a business
nancial expectations accordingly. “A business standard, even though it is fantastic and the money come back at a much higher rate the business has to own it and be responsible angels network, because such networks offer
angel is a private investor, somebody who is meets the needs of customers, nobody is of return on the investment than stocks and for implementing it. So with only minority the best way to validate the idea and the abil-
taking his or her own money and putting it going to buy it.” other saving options would have given them.” shares in the company, business angels ity of the individuals behind the idea to exe-
into a startup,” Lada said. “The investor has Lada said that despite IT and the Internet For Wilan the fundamental thing is to set should not feel at any point that they may be cute it.
all the risk but will get all the rewards—or being relatively unregulated, even there, milestones for the project. “If the entrepre- outvoted when it comes to the execution of There are two main reasons an idea may
will get zero back from it.” products and services have to fit within the neur wants to change the milestone every the exit strategy devised for them. “What it be rejected. Wilan said that the business net-
Lada added that business angels are not rules of the game—as seen in the case of two months it means that there is something takes is an attitude that in the future there work the innovators applied to may simply
venture capitalists. “A venture capitalist is Napster, a peer-to-peer network that allowed wrong with the idea,” he said. “If the mile- will be the exit,” Wilan said. “It is about the not have business angels who are interested
Tomasz Ćwiok
somebody who is taking other peoples’ for sharing media files between private com- stones are solid and the company arrives at conviction of all people concerned that the in investing their money in the market the

24 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 25


COMPANY PROFILE: 3M

Changing the world through R&D


those products, that is OK with us. The new and the people on the sales and marketing Our business departments also collaborate
invention goes to the fridge, where we can teams, in order to make sure you are devel- with academia. Each department at 3M
pick up any ideas in the future. oping the right product. Thanks to this our Poland has a specific program of cooperation
But we also ask people to take risks and corporate research laboratories in the U.S., with academia. So, for instance, we work with
American Investor's Tomasz Ćwiok talks with Xavier Douellou, Managing make mistakes—even in the lab. If your re-
search is not valid, it is not because you made
with contributors from China laboratories,
jointly developed a nanotechnology anti-fog-
the Gdańsk University of Technology on
seminars for students about road safety,
Director of 3M Poland, about how the company manages for innovation mistakes. You make mistakes because you are
entrepreneurial, and we need people to be
ging coating. The basic chemistry was devel-
oped collaboratively in the St. Paul laboratory,
where we teach civil engineering students
about safety requirements in road construc-
and how he sees the challenges facing 3M’s Polish operations entrepreneurial. and 3M China adapted the technology to cre- tion in the European Union. We collaborate

For the general public 3m is perhaps


best known for the post-it® note and
Eventually it was applied to a yellow piece of
paper, and it transpired that by writing some- 3M operations in Poland grew at the average annual rate of 22.9%
scotch® tape. What are 3m’s main inno-
vative products today?
thing on this paper one can communicate
with others at the office or at home. It was a in 2005-2009. The economic downturn in Poland was not so
We provide innovations from 45 different
technology platforms, including adhesives,
brilliant idea!
However, most of the innovations that we strong so we have been able to leverage this and it is not a big
abrasives, light management, micro-replica-
tion, non-woven materials, nanotechnology,
have today are based on customer require-
ments, understanding customer pain points,
issue for us.
and surface modification. A list of our inno- working on them and delivering solutions So we encourage innovativeness and risk- ate a disposable wipe to apply the coating to on adhesives with the Faculty of Mechatron-
vative products therefore has to be a sum- that meet customers’ expectations. taking. In fact, when you work at a 3M R&D the face mask of occupational health respira- ics at the Warsaw University of Technology.
mary. In order to do it right, the people in our lab you have to be creative, because if you only tors to prevent fogging. We have organized seminars with the Białys-
We also have a range of innovative products business labs spend a lot of time with cus- stick to the framework then you just deliver Another example: 3M teams in Sweden tok University of Technology about fiber op-
for the renewable energy sector, including tomers to find out what our customers’ ex- what you are asked to deliver. By being able and the U.S. developed personal protection tics, for instance. So this is how we cooperate
photovoltaic and wind energy. Those are very pectations for solutions are. Our business to experiment freely and use your creativity for welders, using new materials and manu- with academia. We do not use external labs
technology-intensive products. labs, which understand our technology and for thinking of something else, then you can facturing techniques, to create what may be for our R&D, however, as we need to make
In healthcare we have the Lava technology, know what products we can deliver, are also in truly develop some breakthrough technolo- the world’s most lightweight automatically sure we are able to fulfill all the quality stan-
which makes 3D imaging of dental cavities, the position of really understanding cus- gies. darkening filter and shield. This new shield dards that our customers require.
which is used for dentistry. The technology tomers’ requirements. Then they communi- won the coveted Red Dot design award for in- When it comes to staffing our sales depart-
helps dentists understand what really needs cate those requirements to people in our cor- can you give me one of the most recent novation, functionality and ergonomics. ment, we look for people who can work for
to be done. In healthcare we also have the porate labs who are responsible for technol- examples of an innovative success in So collaboration is critical. But another such customers as the medical and dental in-
Littmann stethoscope, which allows general ogy and innovation. In the end, the coopera- this customer-oriented approach? very important aspect of our corporate cul- dustries, for instance. It requires some spe-
practitioners to tune it for high- or low-fre- tion between business labs and customers, Very much indeed! For instance we identified ture is leadership. By the way, good leader- cific sets of skills, and it is not the universities
quency sounds. and business labs and corporate labs, brings a requirement on the automotive market for ship is a must everywhere. In our case we that really deliver those skill sets. We are look-
For aerospace we produce adhesive films about answers where using our technology catalytic converters. There was a pain point have it in corporate labs, business labs, ap- ing for expertise. And when we find experts,
that bind metallic parts of the aircraft. Com- and innovativeness we can deliver products identified with car manufacturers. It was plication engineering, sales and marketing. we still have to invest a lot in those people. It
panies such as Airbus, Boeing, Bombardier, that meet our customers’ expectations. communicated to the 3M automotive busi- By having the right, competent leadership we is not about adding one or two people, but
General Dynamics, Gulfstream and Lock- In most cases we can. For the last 100 years ness lab. People from that lab worked with are able to streamline the process of innova- about making professional teams. We don’t
heed all use our products to manufacture air- we have been focusing on innovativeness, and different corporate labs to look for the tech- tion and make sure that we develop every- want to make it quick; we want to make it
craft to the highest technical standards. Our it has become our way for the company’s or- nology that would be best to solve the prob- thing very quickly. We have processes in place right—to find the right person for the right
honeycomb void fillers are used to reinforce ganic growth. lem. We found out that by using non-woven for acceleration of collaboration and leader- place.
low-weight walls and floor panels in aircraft. So almost everything is linked to what cus- technology we were able to develop the prod- ship.
The products are extremely low-density, easy tomers want. They are in the middle of the uct required by our customers. It is a high But with this comes prioritization. No one 3m poland was established in 1991 as a
to use and very durable, and meet the most light increases and makes the glass go white innovations we do, because otherwise we temperature-resistant non-woven mat that can develop everything at once for every cus- subsidiary of minnesota mining and
challenging fire, smoke and toxicology re- when there is no welding. With this, the work would spend time on products that have no houses the catalytic converter and seals it. It tomer who comes in and asks, “What if...?” manufacturing. today 3m poland has
quirements. of welding is much more efficient. chance to go forward commercially. fulfills all customer requirements. You have to have the right process in place to five production facilities in Wrocław,
When it comes to tapes there it Extreme Another of our innovative product ranges Having said that, I must note that one of So we managed to bring a customer pain make sure that you are working on the prod- one near Grodzisk mazowiecki, and one
Sealing Tape, a single-coated, pressure-sen- is 3M micro-projectors. They deliver quality the principles that we have is that we allow point to the business lab, and, having the uct that your customer really wants, and in a near rabka, and sales offices in katow-
sitive adhesive tape designed for difficult picture imaging for overhead presentations our scientists to spend 15% of their research business lab work with corporate labs, we timely fashion. It is about not promising ice and in kajetany, near Warsaw. What
sealing applications. Then we have the from a device that is not much bigger than a time on their own projects. This is called the managed to solve the problem technically and things you cannot deliver in a reasonable are the main challenges for 3m poland
micro-replication technology, which on abra- mobile phone. You plug it into your PC or McKnight Principle, after William L. develop this idea into a product. time. We either deliver on time or we say, today?
sives helps improve their quality and makes smartphone when you have to make a brief McKnight, who was CEO of 3M from 1929 to I’m happy to say that this product will be “I’m sorry this cannot be done based on your All 3M operations in Poland were able to grow
them more durable. It is used for road signs presentation and do not have a conference 1949 and who introduced this idea. It is about produced in Poland. We have invested USD requirements at that time, but later.” So pri- the company’s revenue at the average annual
and other traffic-control materials. room at your disposal. Considerable demand letting people out of the box so they are able 20 million in a production line here in Poland. oritization is very important. rate of 22.9% in 2005-2009. The economic
Thanks to our non-woven technologies, we for our projectors has been signaled by the to develop things like Scotch tape and others. It will supply all Eastern European markets downturn in Poland was not so strong as it
are the leader in both the small- and large- military in Western Europe, for example. Sometimes you need crazy ideas to turn some and Western Europe too. do you cooperate with the academic was in other countries, so we have been able
particle categories. Our respiratory masks are of them into great business ideas. They can community in poland in the search for to leverage this so far and it is not a big issue
used in the automotive aftermarket: when how do you manage the process of in- spend the time they need to develop products What kind of corporate culture has to be talent to hire? for us.
you repair your car and you polish the body- novation across so many areas? they think make sense to develop. They can in place to connect the dots between Yes, we have to find links between our re- Our challenge is to continue to accelerate
work and use an abrasive, you need a mask to There are two kinds of innovations. One is use the lab, computers and software. what your customers require and your quirements and what universities can pro- while at the same time continuing to invest.
prevent small particles from entering your breakthrough innovations, like the Post-it If their inventions fulfill our customer re- scientists and researchers can deliver? vide. We are very happy with the quality of We have invested over USD 250 million in
breathing system. 3M masks are also used in note, when you come up with a completely quirements, that it is exactly what we want. Collaboration is the principle. We are in a big people we have been able to hire for positions Poland in the last 10 years. Last year alone we
copper mining, coal mining, and automotive new concept and create a new market cate- However, we are also open to pure business matrix which comprises corporate labs, busi- in R&D as well as in sales and marketing. invested USD 20 million. We are investing in
construction, and in the construction sector gory. Before the Post-it note was invented, ideas that so far have no demand on the mar- ness labs, sales and marketing, and cus- When it comes to R&D, our corporate labs in manufacturing and in R&D and plan to in-
by welders. They were also used in some there was no such concept for communicat- ket. They have to be validated, through mar- tomers. You are required to have some very Wrocław cooperate with the Wrocław Univer- vest USD 60 million this year. We also invest
countries during the outbreak of swine flu ing at the office or at home. But the Post-it ket intelligence, marketing research, pilot streamlined processes to bring the customer sity of Technology. We have very good links in sales and marketing people. So, with all the
two years ago. note idea took advantage of a re-positional and marketing tests, whether they are really requirements back to anybody who will be re- with the university when it comes to the investments that we do and that are ongoing,
When it comes to welding, we have the glue that had been invented 20 years before. fulfilling customer requirements. Of course, sponsible for product development. There is process of hiring, which assures that we have we will be able to continue to accelerate at a
Speedglas technology, which is used in hel- After it was invented there was no interest in we will not release a product into the market- a right process for that. the right talent to support in terms of the re- higher rate than we have for the last four
mets for welders. It uses an LCD sensor sys- the re-positional glue. The technology just place before validating its commercial poten- And you need to have the right collabora- quired skill sets. This works pretty well with years.
tem, which makes the glass go dark when the waited in a fridge to be applied to something. tial. But if there is no market demand for tion in place between the different scientists the university.

26 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 27


Expert: Corporate law Expert: Office leases

Raise your capital, lower your tax The art of the lease
There are cost- the par value represents only 1%
of the contribution for the
tions to cover share capital are
not included in the company’s Renting office maintenance costs
Provisions governing mainte-
claims of the landlord is to re-
quire the tenant to present a
effective ways shares. In that case, the transac- revenue for CIT purposes). This
view used to be shared by the ad-
space may seem nance fees, which usually con-
stitute a separate category of
bank guarantee or deposit equal
to several months’ rent (often
of raising the
tion tax will be applied to only
1% of the contribution, and 99% ministrative courts as well. straightforward, fees, are very elaborate in office
leases, specifying the types of
gross rent plus gross service
charges). The claims of the ten-
share capital of of the contribution will be free
from transaction tax as a contri-
However, in a resolution is-
sued on 24 January 2001 (Case but details can costs to be borne by the tenant, ant are rarely secured, as the

your company
and, if the space is in a multi- tenant’s main claim—for deliv-
bedevil
bution assigned to the supple- No. II FPS 6/10), the Supreme
By Aleksandra Faderewska- By Monika Sitowicz, Advocate, unit building or office complex, ery of the premises—should
mentary capital. Administrative Court relaxed its
Waszkiewicz previous position and held that Counsel at Salans law firm the tenant’s percentage share of arise at the very beginning of
A capital increase with agio
tax adviser, Łaszczuk & Partners will not be satisfactory, however, only expenditures that are ab- maintenance fees (usually re- the term. Nonetheless, it is pos-
for companies that need to in- solutely essential to the capital flecting the ratio of the leased sible to include security for the

I
premises to the total floor tenant’s claim for delivery of the

T
ncreasing the share capital is ing debt to equity. crease the share capital as such, increase cannot be deducted as
revenue-earning costs. (The he purpose of an office lease for a few more years. How- space). Another special yet typi- premises (e.g. the landlord’s
a common method for share- Under the rule of single taxation rather than the supplementary
case involved CIT treatment of lease drives the terms. ever, the situation is now changing cal feature of an office lease is voluntary submission to en-
holders of a limited-liability of contributions to a company, an capital. (An example of this situ-
expenses connected with an Since the tenant seeks to because, in 2009, businesses were the “add-on factor”: a specifica- forcement to compel delivery, or
company to give the company a increase in share capital covered by ation would be where the com-
issue of new shares in a joint- use the landlord’s space for busi- finally given the legal opportunity tion of the lease space for the a guarantee to cover a possible
cash transfusion. Below are some an outstanding shareholder loan pany wants to raise the share
stock company, but the court’s ness purposes, the tenant’s per- to sign leases for periods of up to purposes of calculating the rent contractual penalty in the event
tips on how to reduce the tax ef- which was previously subject to the capital to avoid thin capitaliza-
holding should apply by analogy sonnel will mainly need to be 30 years. For instance, longer and maintenance fees as gross of failure to deliver the premises
fects of a capital increase and re- tax on civil-law transactions, or a tion problems.)
to a capital increase in a limited- present during business hours. terms are now being provided in space, increasing the area of the on time), if, for example due to
duce the costs of the operation. tax on capital contributions in an- It should also be pointed out
liability company as well.) Other Nonetheless, 24-hour access is leases for large office spaces re- premises by a factor correspon- fit-out work, the delivery is
other E.U. member state, will be that contributions by sharehold-
expenses that are only indirectly now becoming standard practice. quiring considerable upfront ex- ding to the tenant’s share in the scheduled to take place several
First check the articles of exempt from the Polish transaction ers in cash or kind to cover share
related to the increase in share This also means that tenants ex- penditures. common area. months after the lease is signed.
association tax. It is important to bear in mind capital, as well as agio in cash or
kind assigned to the supplemen- capital may thus qualify as de- pect to be able to do business
As a rule, increasing the share that this exemption will not be onsite without interruption. The standard and beyond
available if the shareholders resolve tary capital, do not constitute ductible revenue-earning costs. securing claims
capital of a limited-liability com- technical standard of the prem- A typical standard lease for a large
to cover the increase in share capi- revenue of the company for pur- In light of this resolution by In the office market, there is
pany requires an amendment to ises must satisfy the tenant, with office space includes highly de-
tal in cash, and then the share- poses of the Corporate Income the Supreme Administrative usually a standard package of
the articles of association in the an uninterrupted supply of utili- tailed provisions concerning the
holder’s claim for repayment of an Tax Act. Court, it should be recognized security for the claims of the
form of a notary deed. However, ties and good telecommunica- relations between landlord and
outstanding loan is set off against that the expenditures on a capi- parties to the lease. The most
the Polish Commercial Compa- tions connections. tenant and the parties’ obligations.
the company’s claim for payment of take deductions from the tal increase that are excluded popular way of securing the
nies Code provides the option of The agreement often varies the
increasing the share capital cash to cover the capital increase. basis for transaction tax from deduction as revenue-earn-
ing costs include the court fee, specific requirements off-the-rack provisions of the Civil
through an ordinary sharehold- As mentioned, the basis for the
tax on civil-law transactions in the publication fee, and (if appli- Tenants such as banks frequently Code, or, if permissible, even
ers’ resolution in writing, without think about an increase require special interior design or waives them altogether. Some
amending the articles of associa- with agio the case of an increase in share cable) the notary fee and trans-
action tax, because the capital safety features (often standard- clauses must be stated in all
tion. This means the company In a typical capital increase, share- capital is the amount by which ized across the corporation), leases: identification of the prem-
can skip a visit to the notary and holders take up shares at par value, the share capital is increased. may not be increased without in-
However, before calculating the curring those costs. However, in- which means high outlays for the ises, the term of the lease, the rent,
reduce the costs of the increase i.e. the contribution (in cash or in fit-out work required in the rent adjustment if any, collateral if
accordingly. In order to take ad- kind) is equal to the par value of tax, this value should be reduced direct costs such as fees for
lawyers, auditors and other ad- premises. The upshot of this in any, and grounds for termination.
vantage of this option, it must be the shares taken up in the capital by (1) the notary fee (including
visers, and costs of preparing practice is that delivery of the Beyond these, a standard office
provided for in the articles of as- increase. Then the entire value of VAT) for preparing the deed that
analyses, opinions, valuations or premises may not happen for a lease should also provide for an
sociation, stating the maximum the contribution is subject to the includes the shareholder resolu-
tion on increase of the share translations related to the capital number of months after the lease exact indication of the standard
amount by which the capital may tax on civil-law transactions, be- is signed. It is common practice and technical parameters of the
be increased without amending cause that is the amount by which capital, (2) the court fee for increase, will be deductible as
the articles as well as the dead- the share capital has been in- amending the company’s com- revenue-earning costs.
line for such increases. creased. mercial register entry in the Na-
However, it is possible to follow a tional Court Register to reflect
The tax authorities take an
even more liberal approach to The most popular way of securing the
consider how the contribu-
tion will be made
construction in which the share- the new amount of the share
holders make contributions that are capital (currently PLN 400), and
deduction of input VAT on in-
voices documenting expendi-
tures connected with an increase
claims of the landlord is to require the
tenant to present a bank guarantee or
An increase in share capital is worth considerably more than the (3) the fee for announcement of
subject to the tax on civil-law par value of the shares they take up the entry in Monitor Sądowy i in share capital. Even though an
transactions, at the rate of 0.5% in exchange. The excess contribu- Gospodarczy (currently PLN increase in share capital is not an
of the amount of the increase.
The capital may be increased
tion, beyond the par value of the
shares, which is also referred to by
250). operation that is subject to VAT,
the tax authorities take the view deposit equal to several months’ rent.
either by creating new shares or the term agio, is assigned to the cit treatment of expendi- that the taxpayer has the right to
by increasing the par value of the company’s supplementary capital. tures on capital increase deduct the full amount of input
existing shares, and the contribu- Because the agio does not increase Previously the tax authorities VAT on expenditures for serv-
ices related to a capital increase, for landlord and tenant to split premises, basic insurance require-
tion to cover the increase may be the amount of the share capital, it had taken the view that any and
so long as the taxpayer itself the fit-out costs between them, ments, and possible relocation of
made in cash or in kind. A com- is not subject to the transaction tax. all expenditures incurred by a especially in long-term leases. the tenant should the premises or
mon practice when there are out- There are no regulations specifying company in connection with an conducts business that is subject
to VAT. It is irrelevant in this re- building become unfit for use.
standing shareholder loans to the how great the agio may be in rela- increase in share capital could
spect whether or not such ex- long lease at last An office lease usually provides
company is to cover the capital tion to the par value of the shares not be deducted as revenue-
penditures also qualify as de- Office leases usually cover sev- exact rules governing alterations to
increase through an in-kind con- that are taken up. Thus the tax au- earning costs of the company eral years (typically 3 or 5). The the premises by the tenant and
tribution in the form of the thorities will accept a capital in- because they are related to the ductible revenue-earning costs
for CIT purposes. parties commonly include an op- sets out procedures for arranging
shareholder’s claim for repay- crease even where the agio repre- company’s non-taxable income
tion for the tenant to extend the alterations with the landlord.
ment of the loan—thus convert- sents 99% of the contribution and (as mentioned above, contribu-

28 AMERICAN INVESTOR APRIL 2011


APRIL 2011 AMERICAN INVESTOR 29
EXPERT: Computer forensics EXPERT: Problem-solving

Electronic investigators in action Managing the tough conversation


computer forensic specialists is
Corporate miscon-
data erasure. It is estimated that
within the next few years com- a detailed report containing in- Enlightened the conversation. Enormous re-
spect is conferred upon leaders
gain credibility by carefully lis-
tening to different perspectives.

duct can be traced,


puter forensics will become a
permanent element of security
formation about the data found
that are relevant to the case leaders know who are honest and upfront. Leaders who already have the

there are planned


answer will usually get superfi-
policy in many big Polish com- being investigated. Establishing
documented and
determine the cause cial compliance, but not mean-
panies and some SMEs. It is the chain of key events should
very important to build aware- also constitute an element of methods for Rather than engaging in blame, ingful change from the other
person.
proven in court
what is highly productive is to
defusing
ness about the use of electronic the report. Because the con-
tents of the report must closely determine what the multiple
evidence for the purpose of By Peter Strupp causes of the problems were so Question and listen
By Marek Suczyk
Managing Director of the Polish
fighting dishonest practices in
business.
correlate with the case, close
cooperation between specialists a conflict president of the supervisory board
United Business Development
they do not happen in the fu-
ture. It is important to recog-
As participants are using the
conversation for the purpose of
subsidiary of Kroll Ontrack The role of company proce- in the laboratory and the people
nize that often there are mutual discovery, it is important that
dures in the computer forensics investigating the case is neces-

T
reasons for why a bad circum- clarifying questions do not
process should be to discover sary. Another element of the co- here are several major well understood. There are also

S
stance or outcome occurred. It come across as a cross-exami-
tealing company docu- use the services of computer fraud early enough and then to operation between the forensics competencies that dif- feelings and perceptions of inten- is the role of the leader to look nation. When there are points of
ments, illegal data copying, forensic investigators, who help implement actions aimed at se- laboratory and the client is ferentiate senior leaders tions tied to the issue. In fact, the at a wide range of influences issue, it is important to seek
or sending classified to conduct an internal investiga- curing evidence, making sure presentation of the results in from lower-level leaders. One of feelings may be the main issue, that may have caused a problem specific information or evidence
clauses and contracts to the tion by analyzing company hard- not to obliterate the traces. If court. Computer forensic inves- these key competency differen- rather than the actual known con- to arise and to explore this to back up a participant’s claim.
competition: these are just a few ware and then provide electro- this is not handled properly, tigators summoned by a prose- tiators is that senior leaders flict which is requiring the con- openly with the person in the Leaders are able to acknowl-
examples of misconduct by dis- nic evidence which the company many traces of improper con- cutor or a court to issue an possess strong interpersonal versation. In addition, the self- conversation. The critical issue edge the other person’s point of
honest employees at thousands will be able to use in court. duct, some quite obvious (like opinion present the body of evi- skills, rather than simply the image of each participant in the here is not to let each individual view even if they do not agree
of domestic and international e-mails or posts to social net- dence as ad hoc expert wit- ability to complete tasks. These discussion is sensitive. All of this get away with simply their own with it. They are able to confirm
companies. Unfortunately, in What is computer forensics? working sites) cannot be used nesses. Despite the fact that problem-solving people skills needs to be taken into considera- viewpoint, but to understand that they understand the per-
Poland as well, instances of Computer forensics consists in later as electronic evidence. not all cases come up for trial can be learned. Often they re- tion. where both parties may have ception. There are a lot of prac-
fraudulent activity by competi- providing electronic evidence to Typical measures taken in (only about 20%), all activities quire new perspectives when Equally valuable is to under- contributed to an unfortunate tical tools on the market that
tors or former employees intent enterprises, institutions or indi- corporations operating in most conducted in a computer foren- dealing with problems and con- stand that participants in any dis- outcome and how to avoid such can work business professionals
on revenge, using company viduals which will then be used developed countries would in- sic process must be carried out flict. Leaders sometimes need pute may have different levels of situations in the future. through the root cause of a
computers or other electronic by certain law enforcement bod- clude securing data from a in such a way that the eviden- to expose their feelings in a information and different inter- Excellent leaders are able to problem or aid in sequenced
devices, are on the rise. The ies. It is a set of activities by computer of an employee who tiary value of the materials is given situation. It may be a diffi- pretations of the subject being take responsibility early in the decision-making based on facts
best solution to protect a com- specialists that involves secur- changes jobs. This is aimed at unquestionable. cult skill to acquire for some, discussed, and may have personal conversation for any role they rather than emotions. These
pany against serious financial ing, locating and uncovering ev- protecting the interests of both but it is much better than re- life experiences that have an enor- may have played that caused the tools can benefit the discovery
losses as a result of such wrong- idence of abuse and offences the company and the employee. more threats, more prob- sorting to the “blame game” and mous effect on their reactions and problem under discussion. This process tremendously and also
doing is to cooperate with com- committed using a computer or It also captures the current lems… non-productive arguments, behaviors. This also needs to be allows both parties to map out add further objectivity to the
puter forensic experts. other electronic device. With state of affairs as of the time the Computer forensic activities are which are still common within understood before the conversa- the causes and look at how to fix situation.
According to data collected computer forensics the chain of employee ceases to cooperate particularly important at times many workplace environments. tion takes place.
when layoffs in various sectors the problem. It should also be
globally by Kroll Ontrack, 43% events of the user’s activity over with the company, and reliably Leaders are required to go Bring about action
of the economy intensify. An ex- noted that many leaders make
through sometimes awkward separate result from intentions the mistake of going for a quick Now it is the leader’s role to
ample of such a period was the and difficult conversations with Before you meet for your conver- frame the conversation in a way
The computer forensic process consists of five recent global economic crisis, fix of the problem, without un-
employees. Whether it is giving sation, make sure you are able to derstanding that the causes may that can bring about a solution
which had an impact on nearly a poor performance review, pro- separate the action (for example a be deeper and more process-re- to the problem. Take the time to
stages: gathering information, calculating the every industry. When the num-
ber of laid-off employees was
viding sensitive feedback, or ob- mistake that was made) and the lated, which means they will re-
jecting to certain types of behav- intentions of the person. You may turn again and again unless the
look at multiple options that are
able to directly allay the con-
control sum, recovering data, analyzing data, increasing every day, companies
that were not protected faced
ior, these conversations need to make an assumption as to what
happen. The best leaders con- you think the intentions were, but
root cause is fixed. cerns and interests of the other
party. List them all on a
and preparing a report outlining the actions the loss of key resources. An-
other problem was the risk of
front difficult issues head-on,
since they know the problem
it is healthy to treat that as an un- Gain perspective
proven hypothesis rather than a
flipchart, if necessary, to look at
a wide frame of potential solu-
taken. wrongdoing by employees who To gain insight, try to look at
will only get worse if left unat- fact. the conflict as a disinterested tions for how the problem can
stayed onboard but whose tended. At the beginning of the conver- observer would look at it. What be overcome.
salaries were cut. Are there roadmaps to such sation, it is a powerful action to is the real story—not simply Look for mutual actions and
The global crisis is only the conflicts? Here are some practi- articulate your feelings that you your take on the problem. Write measurable objectives from
of enterprises worldwide have time can be recreated, drawing documents his or her activities most striking example. A simi- cal areas of advice on framing have attached to the situation and down how an outside party both sides on what should
fallen victim to electronic infor- on information inaccessible to for the organization. lar situation occurs anytime a these types of conversations: let the other participant open up would view the situation. This change the situation. Focus on
mation abuse. Over half of them system users and administra- single company has financial or on how they feel. Strong feelings is not easy, since we have our the mutual obligations required
also suffered irreversible finan- tors. As a result, it should be computer forensic process staff problems. In such cases, define dimensions (such as anger and fear) are often own self-interest tied into any in order to solve the dispute.
cial losses, in the millions of possible to answer the key ques- The computer forensic process enterprises are not only vulner- Obviously, before a tough con- wrapped around difficult subjects. disagreement. However, if there Let the employee know that fu-
dollars, and a third of such of- tions: Who? What? Where? consists of five stages: gather- able to the loss of resources, versation, preparation is needed. Self-confident leaders recognize is to be a resolution, there is a ture communication is available
fences were committed by an When? How? ing information, calculating the but they also jeopardize the What are the purpose and the that they have emotional disci- need to look at all of the diverse within the context of construc-
employee. These data concern control sum, recovering data, image and reputation that they optimal outcome sought from pline, but also are able to show viewpoints. What is important tive solutions (not just griping
not only the most developed data security policy—the analyzing data, and preparing a have been building for years. the conversation? Planning and how they feel emotionally about a for both parties is to understand or blaming).
western countries, but also key to success report outlining the actions preparation make for better out- given conflict. They are able to Einstein said, “Insanity is
how they perceive the situation
countries where professional When thinking about security in taken. Each stage must be prop- comes. look at their emotions as part of doing the same thing over and
as objectively as they can. This
data protection is not imple- a company, the place to start is erly documented so that the It is important to understand the issue that is on the table. This requires mutual respect and the over again and expecting differ-
mented to a degree that fully se- with creating a proper data se- material retains its evidentiary that there are several different exposure of feelings, done the ent results.” If you are seeking
ability to listen and not inter-
cures digital data—a group that curity policy. That will make it value, which is why the pres- things going on within one con- right way, helps tremendously in better conflict outcomes, a well-
rupt the other party while they
includes Central & Eastern Eu- possible to protect against data ence of professionals using versation. First, there is the ac- building trust and solving the thought-out plan is key.
are communicating their per-
ropean countries like Poland. leaks caused by dishonest em- state-of-the-art tools is so im- tual issue at hand. But there is issue. It is a sign of both trust and spective. It should be noted that
In the case of suspected em- ployees, but also in the event of portant. also what is not being verbally strength that people are able to the senior leader holds more
ployee misconduct, it is best to hardware failure or accidental The result of the work of articulated, and this needs to be articulate how they feel as part of power in a conversation and will

30 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 31


EVENT: AmCham Monthly Meeting EVENT: AmCham CEO Forum

Taking about the innovative economy Between inventors and investors


T T
he future of 1 2 he AmCham 1
innovativeness CEO Forum
was on the in March was
agenda of the Am- devoted to the intri-
Cham Monthly cacies of being
Meeting in March. business angels.
The keynote speaker
was Prof. Michał The venue for the
Kleiber, president of event, AleGloria
the Polish Academy Restaurant in War-
of Sciences. The saw, was filled to the
event was hosted by last seat. For more
the Hemisphere about the event read
Restaurant at the In- the article on p. 23.
terContinental War-
saw. For more read
the article on p. 18.
3 4 5 2 3 4

5 6 7
6 7 8

8 9 10
9 10 11

11 1. Tomasz Wróblewski, Dziennik Gazeta Prawna; Rick Lada, AmCham Vice Chair-
man; Piotr Wilam, business angel; Błażej Moder, Łódź Regional Develop-
ment Agency. 2. Błażej Moder; Richard Kałużyński, Kałużyński & Madeja. 3. Peter
Święcicki, Squire Sanders Święcicki i Krześniak; Stan Popow, AmCham Board Mem-
ber. 4. Alon Redlich, International Technology Sourcing; Agnieszka Walter, Richard
1. Joseph Wancer, AmCham Chairman; Rick Lada, AmCham Vice Chairman; Prof. Michał Kleiber, president of the Polish Acad- Baker, Kelly Services. 5. Beata Pawłowska, Royal Unibrew Polska; Tomasz Kra-
emy of Sciences. 2. Hemisphere at the InterContinental Warsaw was the venue. 3. Paula Wąsowska, Cezary Krasodomski, janowski, Richard Żabiński, Focus Research Polska. 6. Janusz Przeorek, Express
Cisco; Piotr Marczuk, Microsoft; Michał Kleiber. 4. Thomas Kolaja, AmCham Board Member; Lucyn Reyno, U.S. Embassy. Map Polska; Piotr Wilam. 7. Paweł Pudłowski, Marathon Oil; Adam Kapitan
5. Józef Sobolewski, Jacek Błocki, Hewlett-Packard; Jacek Stryczyński, Lionbridge. 6. Maria Kowalska, U.S. Commercial Serv- Bergmann. 8. Małgorzata Opalińska, Euromoney Polska; Adam de Sola Pool.
ice; Lucyna Jaremczuk, Ministry of Economy; Barbara Grabowska, U.S. Commercial Service. 7. Paweł Racis, UPS; Peter Kay, 9. Matthew Tebeau, Heidrick & Struggles; Judith Gliniecki, AmCham Vice Chair.
AmCham Board Member. 8. Paweł Wideł, General Motors; Bartłomiej Morzycki, 3M. 9. Agnieszka Jankowska, GE; Joseph 10. Alan Capodanno; Tomasz Wirth, Société Générale. 11. Dorothy Hansberry,
Wancer. 10. Judith Gliniecki, AmCham Board Member; Adam Kapitan Bergmann, Bergmann Associates. 11. Magdalena Burnat- Hansberry Competition; Peter Dembiński; Beata Balas-Noszczyk, Hogan Lovells.
Mikosz, Deloitte Poland; Tony Housh, AmCham Board Member.

32 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 33


EVENT: St. Patrick’s Day Business Mixer

Once a year on St. Patrick’s Day


I
n a grand tradi- 1 2 3 13 14 15
tion, AmCham
celebrates St.
Patrick’s Day together
with the Irish Cham-
ber of Commerce in
Poland. This year the
venue was the
Lemongrass restau-
rant. And what a party
it was!

16 17 18
4 5 6

7 8 9 19 20 21

10 11 12 22 23

22. Guests at a tasting of Jameson whiskey. 23. Interior of Lemongrass Oriental Restaurant & Bar.

1. Lee Feinstein, U.S. Ambassador to Poland. 2. Eugene Hutchinson, Irish Ambassador to Poland. 3. Con Murphy, PM Group.
4. Dorota Dabrowski, AmCham Executive Director; Kenneth Morgan, Chairman of the Irish Chamber of Commerce. 5. Randy
Mott, Ceeres. 6. Kenneth Morgan; Eugene Hutchinson; Lee Feinstein; Joseph Wancer, AmCham Chairman. 7. Victor Jerez,
Wyborowa Pernod Ricard, with his wife; Ambassador and Mrs. Hutchinson. 8. Lee Feinstein; Rick Lada, AmCham Vice Chair-
man; Joseph Wancer. 9. Con Murphy; Joanna Bensz, AmCham Wrocław; Joseph Wancer. 10. Eugene Hutchinson; Kenneth
Morgan; Mrs. Hutchinson; Dorota Dabrowski. 11. Richard Lada; Beata Gabor. 12. Waldemar Saniewski, Warner Bros Entertain-
ment Polska; Davide Odella, Grupa Trip, and his wife. 13. Kenneth Morgan, Jacek Wasilewski, OCSC. 14. Randy Mott; Marek
Matraszek, CEC Government Relations. 15. Marzena Drela, AmCham; Lucyna Jaremczuk, Ministry of Economy. 16. Joanna
Bensz; Katarzyna Wojciechowska, Procter & Gamble. 17. Marcin Rogulski; Christopher Smith. 18. Irish musician John Illis.
19. Loic Fretard, Medicover; Adam Kapitan Bergmann. 20. Guests having a good time. 21. Shade cider from Royal Unibrew.

34 AMERICAN INVESTOR APRIL 2011 APRIL 2011 AMERICAN INVESTOR 35


SUMMARIES: in Polish AMCHAM: Guide to Committees

W tym numerze:
For the most recent information about the work of AmCham Committees, and upcoming events: www.amcham.pl

COVER STORY Agri & Food European Union Affairs Pharmaceutical


www.amcham.com.pl/agri_food www.amcham.com.pl/eu www.amcham.com.pl/pharmaceutical
Polskie firmy coraz bardziej zdają Mission: To provide a plat-
form for discussing and
Mission: To provide
members with relevant
Mission: To discuss and
identify common interests

sobie sprawę, że bez innowacyj-


solving issues and identify- information on E.U.-re- and exchange information re-
ing opportunities for com- lated issues, including garding Poland’s pharmaceu-
panies in the agricultural E.U. funds, and to repre- tical market; to act as a repre-

ności nie będą mogły konkurować


and food sector by creat- sent American investors sentative body and collective
ing a base for dialogue and expertise leveraged before the Commission and the Polish govern- voice of pharmaceutical companies before governmen-
among producers, sector professionals, experts and ment. Co-Chairs: Magdalena Burnat Mikosz, De- tal institutions. Co-Chairs: Peter Koetsier, Bristol-Myers

na rynku. Jednak stare przyzwycza-


decision-makers. Co-Chairs: Andrzej Pawelczak, loitte; Jerzy Thieme. Squibb Polska; Roberto Servi, Eli Lilly Polska.
Animex; Maciej Łubieński, Universal Leaf Tobacco
Poland. Financial Services
Political Discussion Forum
jenia środowisk akademickich oraz
www.amcham.com.pl/financial
Consumer Products www.amcham.com.pl/pdf
Mission: The Financial
www.amcham.com.pl/consumer Services Committee aims Mission: To build relation-

brak regulacji wspomagających in- to identify and promote is- ships with key players in
Mission: To provide a
sues related to and in sup- Polish politics, regardless of
forum to share knowl-
port of the financial serv- whether within the govern-
edge and exchange ex-

nowacyjność są skutecznym hamul- ices sector, as well as to ment or not, in small groups
perience in all areas
provide a forum for dialogue among sector profes- and in private settings, to
common and relevant to
sionals and decision-makers in government. Co- serve as a vehicle into the
manufacturers and dis-

cem rozwoju innowacyjnej gospo-


Chairs: Andrew Hope; Adam Michon, MetLife. world of Polish politics behind official curtains. Co-
tributors of goods. Co-Chairs: Małgorzata Surdek,
Chairs: Robert Koński, Kulczyk Holding; Marek Ma-
CMS Cameron McKenna; Agnieszka
traszek, CEC Government Relations.
Dzięgielewska-Jończyk, HP Polska. Health
darki, str. 12; 10 porad dla osób, Corporate Social Responsibility
www.amcham.com.pl/health
Mission: To provide a
Real Estate Committee
www.amcham.com.pl/real_estate

które myślą o założeniu własnej in-


united forum for U.S. com-
www.amcham.com.pl/csr panies to share their ex- Mission: To discuss issues
pertise on the healthcare regarding the complexities
Mission: To encourage and
system and exchange of the real estate market in

nowacyjnej firmy, str. 17.


facilitate responsible busi-
knowledge and experience Poland, and exchange infor-
ness practices among Am-
with national counterparts, contribute to the positive mation. To be an educa-
Cham members to support
developments in the sector and promote the U.S. ex- tional and networking forum
them to improve the quality
perience and capital while establishing the best con- for members and to lobby and influence legislative
and effectiveness of their
ditions and opportunities for investments. Co- departments of the Polish government. Co-Chairs:
CSR programs. Co-Chairs: Wojciech Arszewski,
Chairs: Elisabeth Asirifi, IBM Polska; Jolanta Halina Więckowska, K & L Gates; John Bańka, Col-
UPS Polska; Anna Jawor, IBM Polska.
Chlebicka-Dominiak, Johnson & Johnson. liers International.

Monthly Meeting sztuka leasingu Wynajem biur może wydawać się prostym bizne-
sem jednak kiedy zagłębimy się w szczegóły może wyłonić się zu-
Defense & Security
www.amcham.com.pl/defense
Infrastructure
www.amcham.com.pl/infrastructure
Small & Medium-Sized Enterprises
www.amcham.com.pl/sme
pełnie inny obraz, str. 29
od zera do innowacyjnej gospodarki Aby odnaleźć się w Mission: To serve as a Mission: To discuss is-
Mission: To provide a forum
globalnej gospodarce opartej na innowacyjności, w Polsce musi elektroniczne śledztwa Uchybienia w firmie, zaniedbania, oraz platform for defense indus- for exchange of ideas/best
sues of the development practices to improve the per-
zmienić się nastawienie administracji i instytucji państwowych przypadki łamiania przepisów i innych regulacji obowiązujących try issues and exchange of infrastructure; to pro-
relevant information. The formance of SMEs; to iden-
do współpracy z sektorem prywatnym, str. 20 firmy mogą być udokumentowane w formie danych komputerowych i mote infrastructure solu-
committee creates a net- tify and promote solutions to
wykorzystane w sądzie, str. 30 tions for cooperation be- facilitate and support the
working forum and fosters tween private and public
CEO Forum a positive working relationship with the government managerial and operational
trudne rozmowy Dobrzy menadżerowie znają metody rozwiązywa- partners. Co-Chairs: Krzysztof Wierzbowski, efforts of SMEs through educational, networking or lob-
nia trudnych konfliktów, str. 31 and people of Poland. Co-Chairs: Paul Zalucky; Wierzbowski Eversheds; Andrew C. Kapusto,
Stan Prusiński, Sikorsky Europe. bying efforts that leverage the resources and knowl-
Raytheon Homeland Security. edge of AmCham and its membership. Co-Chairs:
pomiędzy wizją i ryzykiem Zanim anioły biznesu staną się
Alain Bobet; Cezary Krasodomski, Cisco Systems.
RELACJE ZDJĘCIOWE
ważnym elementem w tworzeniu sukcesów rynkowych nowych Employee & Labor Relations
firm, osoby podejmujące się tej roli muszą nauczyć się podej- www.amcham.com.pl/labor
Intellectual Property Rights
mować ryzyko a autorzy innowacyjnych pomysłów, muszą www.amcham.com.pl/ipr
nauczyć się rozumieć prawa rynku, str. 23 Spotkanie Miesięczne, str. 32 Mission: To create an infor- Mission: To advocate for Tax
mation exchange forum of IPR protection and provide www.amcham.com.pl/tax
CEO Forum, str. 33 HR professionals and so- leadership that will bring
Mission: To provide a platform

PROFIL FIRMY cial policy experts from together interested part-


Mikser Biznesowy, str. 34-35 for identifying tax issues and
ners; to share information
multinational and local create an educational forum to
with decision-makers and
companies to share, dis- keep AmCham members in-
zmieniając świat przez innowacje Tomasz Ćwiok, redak- law enforcement. The police, judiciary, prosecu-
DZIAŁY STAŁE cuss and learn about the latest trends in HR man- formed on current and up-
tor magazynu “American Investor”, rozmawia z Xavier Douel- tors, customs officials, legislators and journalists
agement and collectively influence local policy and coming legislation. To create a
lou, dyrektorem zarządzającym 3M Poland, na temat strategii are among the target groups, while the curriculum
decision-makers for modern solutions in labor leg- network to share information, comments and best prac-
of law schools should have more emphasis on IPR.
firmy w zarządzaniu procesami innowacynymi, oraz wyzwani- Briefing redakcyjny, str. 2 tices. To lobby decision-makers in the government.
islation. Co-Chairs: Jolanta Jaworska, IBM Poland; Co-Chairs: Agnieszka Wyszyńska-Szulc, Philip Mor-
ami dla firmy w Polsce, str. 26 ris; Anna Lasocka, Łaszczuk & Partners.
Co-Chairs: Peter Kay, KPMG; Piotr Bartuzi, Bank BPH.
List Dyrektor Zarządzającej AmCham, str. 4 Peter Strupp, United Business Development.

Informacje o firmach członkowskich Izby, str. 5 Telecom


EKSPERCI Informacje o działalności Komitetów Izby, str. 8 Environment & Energy
Outsourcing/High Tech
www.amcham.com.pl/outsourcing
www.amcham.com.pl/telecom
zwiększ kapitał firmy, zmniejsz podatek Istnieją sposoby www.amcham.com.pl/environmental Mission: To create a platform
Podsumowanie zawartości numeru w języku polskim, str. 36 Mission: To provide a plat- under the AmCham umbrella
na zwiększenie kapitału firmy, dzięki którym zapłacimy Mission: To help members form for discussing, identi- for the exchange of members’
mniejszy podatek, str. 28 Przewodnik po Komitetach Izby, str. 37 develop their environmental ideas and views on trends in
fying and addressing com-
and renewable energy busi- mon SSC/BPO issues re- the telecommunications sec-
ness and help learn about, lated to high-tech opera- tor in Poland; to take steps to
identify and overcome any tions; to maintain contact influence decision-makers in telecommunications legis-
© American Chamber of Commerce in Poland 2011. All rights reserved. difficulties connected with with local authorities, educational and governmental lation, policy and practice; to promote innovative
environmental laws, and develop a discussion forum institutions to present a unified business perspective trends in telecommunications; to modernize communi-
American Investor to oficjalny magazyn Amerykańskiej Izby Handlowej w Polsce. Magazyn reprezentuje głos środowisk międzynarodowego biznesu w Polsce. Celem magazynu jest among members about environmental issues and and to suggest ways of possible cooperation. To cations technology for business and the average Polish
dostarczanie członkom Izby i innym czytelnikom aktualnych informacji na temat działalności Izby a także trendów biznesowych i polityce społecznej firm. maintain contacts with Polish authorities responsible identify the possibilities/areas of state assistance, to consumer. Co-Chairs: Jarosław Roszkowski, Crowley
for making and implementing environmental policies. share experience and leverage knowledge. Co- Data Poland; Piotr Muszyński, TP SA.
Co-Chairs: Adam de Sola Pool, Jerzy Chlebowski, Mit- Chairs: Marek Suczyk, Kroll Ontrack; Jacek
listy do rekacji prosimy wysyłać na adres poczty elektronicznej: tomasz.cwiok@amcham.pl subishi. Stryczyński, Lionbridge.

36 AMERICAN INVESTOR APRIL 2011