How to Compete and Win Over Investors for your Country: Insights from the Investment Promotion Study Tour in Poland
In today’s global landscape marked by post-COVID recovery and geopolitical shifts, foreign direct investment (FDI) remains pivotal for driving economic and social development. Countries worldwide, including those in the Organization for Economic Co-operation and Development (OECD) and the European Union (EU), have leveraged FDI to stimulate economic growth and job creation. Despite challenges like changing geopolitical environments, modest global FDI growth, supply chain disruptions, and production shortfalls, nations continue to strive for favorable business environments and effective investment policies. By adopting best practices in investment policies, promotions, and business environment improvements, countries can lay the groundwork for sustainable development and prosperity.
How can you persuade investors to choose your region for their next investment?
To answer this question, the Investment Transparency Activity, funded by the Economic Development, Governance, and Enterprise (EDGE) Growth Project through the U.S. Agency for International Development (USAID), organized an Investment Promotion Study Tour in Gdańsk and Warsaw, Poland. The tour provided Investment Promotion Agencies (IPAs) and business chambers and associations from nine Europe and Eurasia (E&E) and Central Asian countries with valuable insights and guidance on strategies and action plans to implement successful investment promotion and attract new investment projects.
Over three days, the study tour engaged IPAs and business associations from Albania, Armenia, Bosnia and Herzegovina, Kosovo, Montenegro, and Serbia, Uzbekistan, Kyrgyzstan, and Kazakhstan. Participants learned from IDG investment experts, Invest in Pomerania—a leading European Union regional investment promotion agency, and the Polish Investment and Trade Agency—also known for its success in attracting FDI to Poland. They explored real-world case studies of companies such as Boeing, Wipro, Intel, Amazon, and Visa that have invested in the Pomerania region and other regions in Poland. Through interactive discussions, expert presentations, and visits to major plants, and to FDI ecosystem partners, participants left with valuable insights on effective FDI policy, investor needs and priorities, and promotion strategies.
Invest in Pomerania, with a track record of over 200 projects, managing 1600 inquiries, and creating nearly 25,000 jobs in the past 12 years, identified three effective strategies for attracting investors to their region:
- Shortening the administrative work for managers by helping navigate local laws: facilitating new and existing investors in understanding and dealing with local laws and regulations is an essential function for all investment promotion agencies. This can speed up the establishment of investment projects and enable companies to focus on business development and growth.
- Facilitating connections with existing businesses in the region: the FDI ecosystem is critical for investors as it introduces a network of essential partners, including local suppliers and business partners, potential research and development partners in academia and other institutions, business zones and infrastructural partners, as well as key partners in education, training, and recruitment. Additionally, it connects investors with business, technology, and financial partners, providing the necessary resources and collaborations to thrive in a new market.
- Offering comprehensive aftercare services, from public relations support to community engagement: many countries receive over 50 percent of their new investment from existing investors through expansion projects or the addition of new business functions, such as research and development, technical support centers, regional marketing headquarters, and administrative and business process outsourcing centers. A professional aftercare service is vital to help investors establish and deepen their businesses in a country, fostering expansion and attracting new investment projects.
The insights gained from the Investment Promotion Study Tour underscore the importance of strategic investment promotion. By implementing effective strategies such as streamlining administrative processes, facilitating connections within the FDI ecosystem, and providing comprehensive aftercare support, countries can create a more attractive and supportive environment for investors. These efforts not only help in securing new investments but also in nurturing existing ones, thereby contributing to sustainable economic development.
This article is written by Afua Owusu, Communications and Events Manager at IDG and Investment Expert Declan Murphy.
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