Foreign direct investment has undergone a sea change as digital economies, geopolitics, and factory automation spark declines in FDI inflows. To attract investment, governments need to create value propositions that don’t just resonate but differentiate.
Some countries are already on this path. With strategies to spur local innovators, ecosystems, and talent, they’re creating assets—and opportunities—that help them stand out in a heated FDI environment. Success requires a holistic, end-to-end approach to drawing and facilitating investment. For many countries, that will be a sea change, too.
BCG’s Approach to Foreign Direct Investment
With many products now taking digital form, andIndustry 4.0technologies making it more practical to reshore certain work, governments need to create an effective—and sustainable—engine for foreign direct investment ininternational business.
Our foreign investment consultants work with key stakeholders—such as investment promotion agencies (IPAs) and ministries of development—to create strategies and structures that drive FDI, job creation, andeconomic developmentfor the long term.
And because we can call on a global network of experts, covering a full range of topics and capabilities, we can help at every step along the FDI journey:
- Diagnosis.We assess a country’s FDI readiness: analyzing the quantity and quality of FDI inflows; measuring the effectiveness of current enablers, policies, and incentives; and identifying roadblocks.
- Value Proposition.We help countries identify ways to leverage their existing, nascent, and potential strengths to meet important market needs—and stand out in a crowded FDI landscape.
- Enablers.We work with governments to develop policies, incentives, and resources that support their value propositions and accelerate investment. This includes everything from streamlining bureaucratic processes to creating full-fledgedinnovation centers.
我们的经验方程a的另一边ssisting global companies with their location and sourcing strategies for foreign direct investment—is another key asset we can call upon. By understanding business requirements and challenges, in industries as varied asagricultureandtechnology, we help countries develop the kind of compelling value propositions that generate FDI opportunities. And keep generating them.