Innovations in Foreign Direct Investment Attraction

1.  IMPORTANCE OF INVESTMENT PROMOTION

The following sections provide a framework for understanding the different activities 

of an investment promotion agency and why investment promotion can increase the 

quantity and quality of FDI a country attracts. 

1.1 

WHAT IS INVESTMENT PROMOTION?

Investment promotion refers to all the activities that economic development orga-

nizations (EDOs) and investment promotion agencies (IPAs) undertake to attract 

FDI to their jurisdiction and encourage foreign investors to continue to invest and 

expand. The activities of an investment promotion agency can be categorized into 

four main areas, as Figure 1 shows.

FIGURE 1.

 Framework for Investment Promotion

Source: Loewendahl, H. ‘A Framework for Investment Promotion’ TNCs, UNCTAD (April 2001).









 













• Setting National Policy Context 

• Setting Objectives

• Sector and Market Strategy 

• Setting the Organization

• Product Development 

• After-Care

• Suppliers development 

• Monitoring & Evaluation

• Competitive positioning 

• Image Building/Breaking 

• Create Awareness

• Investment Prospecting 

• Competitive positioning 

• Image Building/Breaking 

• Create Awareness

• Investment Prospecting 

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