This report also attempts to highlight the pandemic induced operation model transformation of IPAs including investment sustainability, investment inclusivity, inclusive regional development and knowledge sharing across the spectrum of stakeholders.
The report identifies that most countries are focused on actively attracting foreign and domestic investments with the help of highly proactive IPAs that have strong investment promotion policies in place.
In general, majority of the investment promotion policies encompass various facets of the investment promotion lifecycle. IPAs are becoming more and more agile by regularly upgrading their policies and reforms while, also undertaking various technological interventions to streamline operations and enhance their capabilities.
Countries and their respective IPAs have recalibrated their strategies and are leveraging sector specific investment promotion incentives to attract global investors. There is a strong focus on non-fiscal incentives which are being prioritised over the fiscal incentives, tiered across economy type. The lower middle-income economies are more inclined towards incentives. However, as these economies mature, the focus on incentivisation declines.
The impact of FDI on economic development and the role of IPA therein, are heterogeneous and subject to political and economic realities in the respective countries. With IPA’s gaining global relevance, their mandates vary from being pureplay marketing agencies for locations to largescale evolved institutions that support a plethora of services from lead generation to aftercare for businesses.
The report further identifies the outcome orientation followed by IPAs during and post pandemic era. Earlier, the IPAs followed a knowledge-based, coordination-only model which involved a pure matchmaking approach.
However, over the years, the traditional IPA model has undergone transformation and has now assumed a fullscale advisory role that guides investment decisions globally for a specific region, with razor sharp propositions.
The IPAs are increasingly collaborating with the governments to pull together the ecosystems for their innovation efforts, which help facilitate long term success within their economies. The wider impact of this kind of collaboration is facilitating implementing of fiscal and non-fiscal reforms, and the overall approach and methodology towards investment promotion, facilitation, business retention and expansion is undergoing a systematic change.