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Competing for High-quality FDI: Management Challenges for Investment Promotion Agencies

Author

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  • José Guimón*

    (Department of Economic Structure and Development Economics, Universidad Autónoma de Madrid, Madrid)

  • Sergey Filippov

    (Faculty of Technology, Policy and Management, Delft University of Technology, Delft)

Abstract

Competition for FDI is intensifying and changing in scope as governments of developed and developing countries alike place a higher emphasis on the quality rather than on the quantity of FDI. Against the backdrop of contemporary international business trends, we argue that shifting from quantity to quality in FDI promotion entails a new policy mix and a new approach to performance evaluation. We examine the challenges that investment promotion agencies targeting quality are confronted with from an intellectual capital management perspective, drawing attention to the implications for their human, structural and relational capital. This study offers a broad framework to better guide FDI policy reform and evaluation.

Suggested Citation

  • José Guimón* & Sergey Filippov, 2012. "Competing for High-quality FDI: Management Challenges for Investment Promotion Agencies," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 25-44, July.
    • Handle: RePEc:umk:journl:v:4:y:2012:i:2:p:25-44
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    References listed on IDEAS

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    Cited by:

    1. K. I. Grasmik & A. A. Nesterov, 2016. "Corporation for development as a tool to attract foreign investment," Studies on Russian Economic Development, Springer, vol. 27(3), pages 262-268, May.
    2. Elena Poliakova & Liesl Riddle & Michael E. Cummings, 2020. "Diaspora investment promotion via public–private partnerships: Case-study insights and IB research implications from the Succeed in Ireland initiative," Journal of International Business Policy, Palgrave Macmillan, vol. 3(1), pages 23-37, March.
    3. Guimón, José & Salazar, Juan Carlos, 2014. "Collaboration in innovation between foreign subsidiaries and local universities: evidence from Spain," Papers in Innovation Studies 2014/5, Lund University, CIRCLE - Centre for Innovation Research.
    4. Sardor Tadjiev & Pierre-Yves Donze, 2021. "The Development of the Automotive Industry in Post-Soviet Countries since 1991," Eurasian Journal of Business and Management, Eurasian Publications, vol. 9(2), pages 164-183.
    5. Gustafsson, Robin & Aalto, Eero, 2020. "Inward Foreign Direct Investment Promotion – A Review of Policy Rationales and Impacts," ETLA Reports 103, The Research Institute of the Finnish Economy.
    6. Nicolas Papadopoulos & Yara Ibrahim & Alessandro De Nisco & Maria Rosaria Napolitano, 2018. "The Role of Country Branding in Attracting Foreign Investment: Country Characteristics and Country Image," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2018(2), pages 85-108.
    7. Marta Götz, 2016. "Policies towards the OFDI and IFDI in the European Union after the 2008+ crisis," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 93-103.
    8. Knoerich, Jan & Vitting, Simon, 2021. "The distinct contribution of investment promotion agencies’ branch offices in bringing Chinese multinationals to Europe," Journal of World Business, Elsevier, vol. 56(3).
    9. Filippov, Sergey, 2012. "European investment promotion agencies vis-à-vis multinational companies from emerging economies: Comparative analysis of BRIC investor targeting," MERIT Working Papers 2012-076, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    FDI; intellectual capital; investment promotion; multinational companies;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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