Innovations in Foreign Direct Investment Attraction

2.6 

MONITORING AND EVALUATION

Best practice in investment promotion includes an accurate system to monitor and 

evaluate investment promotion activities and results. As the scorecard below shows, 

key elements include clear targets for attracting and measuring FDI and its economic 

impact, qualification that investment takes place and measuring the role of the IPA 

in securing FDI, and evaluation of the performance and return on investment of the 

IPA.  

Monitoring and Evaluation Good Practice Scorecard

A. Monitoring

1. 

Are there clear investment promotion activity targets (e.g. number of prospects, meet-

ings, site visits, conversion rates)?

2. 

Are there clear FDI results targets (e.g. number of FDI projects, jobs, capital invest-

ment)?

3. 

Is there systematic and continuous tracking of new and existing foreign investors in the 

location and their economic and social impact?

4. 

Are investors willing to cooperate and share information and support the FDI strategy?

5. 

Is information gathering through monitoring activities used effectively within the orga-

nization and with other stakeholders and the public?

B. Evaluation

1. Are the investment promotion and FDI targets properly monitored and considered 

realistic and effective?

2. Does the evaluation of the investment promotion process include metrics to qualify 

that the FDI is actually taking place and the involvement of the IPA in securing FDI?

3. Is the return on investment of investment promotion activities evaluated to encourage 

value for money and performance improvement?

Source: WAVTEQ based on Loewendahl (2001) “Bargaining with Multinationals”, and Loewendahl (2015) “A new foreign direct investment accounting 

methodology for economic development organizations” (Columbia FDI Perspectives. 

No. 165, January 18, 2015).

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