Innovations in Foreign Direct Investment Attraction

1. The local level is critical for site selection decisions: While investors may conduct 

an initial country-level screening to identify countries to consider for investment, 

the investor will quickly drill-down to the local level, as it is at the local level that the 

availability of land, property, skills, infrastructure, customers and suppliers will be 

assessed by investors. In most countries, incentives are also not standard across the 

country but depend on which location within the country the company invests. The 

quality of investment facilitation services provided at the local level can be critical to 

securing FDI. Once the investor makes an investment, investment aftercare services 

are also ideally provided at the local level, especially in medium and large sized coun-

tries, to be able to meet investors regularly and provide on the ground support and 

networks. The local level is also very important for securing re-investment projects 

by working closely with local management;