"You have to have a long-term vision." says Gene Barton, a partner in Choate Hall & Stewart LLP's business and technology group. "If you're going to go and do business internationally, the key word is patience, and companies that are successful overseas have all done careful business and legal planning at the outset."

A number of government agencies and private-sector businesses exist that provide programs and services to assist companies in planning and executing a successful global strategy.

Exporting

The primary way for businesses to expand globally is through exporting, and despite its relatively small size, Massachusetts is one of the nation's leading exporters.

Massachusetts shipped $21.8 billion worth of merchandise overseas in 2004, the ninth largest figure among the 50 states and a 17 percent increase from the previous year, according to the most current data provided by the U.S. Census Bureau. Exports account for over 6 percent of all employment in the state, and more than one-fourth of all Massachusetts manufacturing workers depend on exports for their jobs.

The Massachusetts Export Center (MEC), a division of the state's Small Business Development Center Network, provides export development services for small to midsize companies. Since its inception, the MEC has provided export assistance to more than 17,000 companies and has organized training programs that have been attended by more than 10,000 companies in Massachusetts.

"We have companies in this state that are producing some of the best products in the world, and there's definitely a demand for these products (internationally)," says Paula Murphy, director of the MEC.

The agency offers technical assistance and counseling for firms to help them develop a customized export strategy and international business plan.Results are tracked by a survey published annually by MEC. Respondents reported a $47.3 million increase in export sales in 2004 -- which they said was a result of assistance from MEC -- and a 39 percent increase in overall sales.

MEC has a sister agency, the Massachusetts Office of International Trade and Investment (MOITI), whose goal is to attract foreign companies to invest in Massachusetts and assist Massachusetts companies in growing through "focused export promotion."

The agency organizes Massachusetts contingents of small to midsize companies looking to promote their products at "about six to eight international trade shows, across all sectors" annually, according to Christa Bleyleben, MOITI's executive director. MOITI provides and sets up booth space, publishes a catalog featuring all the Massachusetts companies at the show, lends on-site support and arranges matchmaking meetings with potential distributors and business partners for the participating firms.

"Companies pay to attend," she says. "We make them more cost-effective by negotiating discounts with the trade show organizers."

In November, the agency organized a trip to Düsseldorf, Germany, to attend "Medica '05," the world's largest medical equipment and diagnostics trade show. Thirteen companies attended under the Massachusetts banner.

"They allowed us to exhibit and take the chance on an overseas show," says Brendan Leonard, director of sales and marketing for Health Enterprises, a North Attleborough-based niche consumer health products manufacturer. "It allowed us to exhibit like a Fortune 500 company without being one."

Private partners

There is help for companies looking to expand overseas from the private sector as well.

Idis, for example, is a U.K.-based middleman that navigates complex regulations to bring treatments to patients in home countries where the drugs aren't yet approved. The company recently set up a two-person office in Dover.

Another company is Waltham-based Parexel, a pharmaceutical service firm that provides, among other things, assistance to biopharmaceutical and medical device companies seeking to get products approved in foreign markets.

"We can be the brains, arms, and legs for companies that lack a presence in markets that are of interest to them," says Alberto Grignolo, general manager of Parexel's drug development consulting practice.

Grignolo says that the expertise that Parexel provides is particularly helpful when trying to get drug approval in the European Union. "We have people who know the E.U. system very well. Using the right expert with specialized knowledge of the approval procedures is an efficient way to seek and obtain approval in all 25 member states in the E.U."

From Boston Business Journal
Michael Hoban  Special to the Journal
Published: January 9, 2006