This report gathers data from 74 Investment Promotion Agencies (IPAs) worldwide, providing insights into their strategies for addressing global changes and challenges that affect the attraction and targeting of Foreign Direct Investment projects.
The OCO Global - World Association of Investment Promotion Agencies partnership has allowed us to survey 74 IPAs from around the world to learn how they are responding to these changes. This global reach has allowed us to take in different perspectives across every continent from national agencies, regions, and cities. Our respondents have reported a transformation in the global economy over the last few years, and the future remains one of uncertainty and complexity. This is the challenge for IPAs, and as our new research shows, it is a challenge that is already fundamentally changing how they make strategic decisions and operate.
While budgets and staffing are stretched, the investment process is becoming increasingly resource intensive. IPAs are not only dealing with more demanding investors, but policy choices towards quality over quantity require additional work to source and secure the best projects. Talent is now well and truly part of investment promotion and we have discovered how more IPAs are developing talent attraction strategies to complement their existing work.
The role of cities – and their collaboration with companies, universities, and national IPAs - is likely to become crucial to address the talent attraction challenge. Technology and AI have already revolutionized much of the world’s economy. But, with a few exceptions, we found IPAs are still behind the curve. The most successful IPAs in the future will be those able to leverage technology and AI across the whole investment attraction cycle. But how can IPAs demonstrate they are making a difference?
There is no doubt that most agencies are proactively seeking better opportunities linked to environmental and social goals. But it is also clear that no one is using the same performance indicators, sometimes not even the same definition of quality FDI.
How can we sustain high-quality FDI if we can’t measure it? If we can’t compare it? If we don’t speak the same language? Our research shows that the future of FDI requires refining - sometimes a reset - of strategies, operating models, and performance indicators for IPAs.
OCO Global and WAIPA are committed to bringing solutions to these critical challenges. FDI attraction isn’t always about competition. What is needed to make progress is a collaboration between IPAs, to share the most innovative practices and help facilitate FDI projects that benefit everyone. That’s what the OCO – WAIPA IPA Innovation report is about, and we’d like to send our gratitude to the 74 respondents who helped make this happen.
