This is where we evaluate your strategy
ResearchFDI understands that economic developers need to have current data and up-to-date information on their regions’ targets, assets and trends to successfully position their region to interested investors. By putting a formal plan in place, communities can take control of their investment attraction strategy, set clear and attainable objectives, and design policies and programs to achieve them. Without a plan, your economic future is reactive at best. At worst, it’s in the hands of others – especially in this time of uncertainty.
Awareness of brand, image and perceptions are critical factors in determining the final destination of FDI. A company’s site selection process is based on information about a location’s advantages and a sound understanding of the location’s investment offering. Investment Attraction is therefore an important tool to attract inward investment and a framework that Agencies can use to improve their effectiveness in attracting FDI and maximize the benefits to their local economies. The most successful IPAs are those that have developed an integrated investment attraction strategy that is aligned with national development goals. The strategy should clearly define the sectors, subsectors and target markets, as well as detail the marketing, aftercare and product development approaches that would be undertaken.
EFFECTIVE INVESTMENT ATTRACTION STRATEGY:
10 COMPONENTS
1. Vision & Strategic Objectives
Your vision is a generalized statement on what you hope to achieve in the sector through the attraction of FDI. Your objectives are the identified deliverables and the actions that will contribute to the realization of that vision.
2. Benchmarking
Benchmarking is the process of comparing one’s business climate and performance metrics to other regional or global competitors. A benchmarking study provides an objective and realistic ‘picture’ of your location compared to competing alternative locations in the region.
3. Image-Building
Image building is meant to encourage investors to learn more about your location’s business potential and can only be successful if there is a relatively good business environment. The objective is to create positive perceptions of your location’s investment market among domestic & international firms.
4. Sector and Market Strategies
As part of the continuing process of market research and intelligence, one of the stages that require detailed collection of information, structuring and analysis is the identification and selection of sectors and subsectors with potential to attract foreign investment. This stage is one of the most important inputs for the design and development of your investment attraction strategy.
5. Investor Targeting and Lead Generation
Investor Targeting and Lead Generations is the process of actively pursuing investment leads and ideally promoting these to actual investment projects.
6. Marketing and Promotion Strategies
The strategy should identify the main marketing and promotion initiatives to be undertaken by the IPA.
7. Product Development
Product development are the activities taken to improve the underlying competitiveness of the region for FDI and inward investment. These can include activities such as skills development, linkages with local companies, infrastructure development, property development, improving quality of utilities, etc
8. Budgets and Resource Allocation
The strategy should provide a detailed budget plan for the organization.
9. Key Performance Indicators (KPIs) for monitoring and evaluation.
For each strategic objective, measurable performance indicators should be provided. These typically include targets such as Number of investor inquiries, Number of investment projects attracted, Value of the investment projects being targeted, Direct jobs created by investment projects.
10. Action plan: short-, medium-, and long-term
Actions required to meet each target and goal, outlining investment attraction tools and budgets.
