EU RDAs
ATTRACTING
FOREIGN INVESTMENT
___________________________________________________________________________
The enlargement of the European Union will obviously bear a sizeable impact on regions in
the current EU 15 when it comes to attracting foreign investment. For a few years now,
investors have actually been anticipating on the advantages they can draw from the new
European geography. Indeed, since 20001, the Central and Eastern European Countries have
been attracting investors in growing numbers, notably in the manufacturing sector. In 2002,
on a manufacturing market that shrank by 4%, the CEECs' share grew to 18%. A few
countries, including the Czech Republic, Hungary and Slovakia, already hold larger shares of
the manufacturing market than some Member States such as Belgium, Ireland and Italy, for
example. Nevertheless, EU 15 Member States retain their competitive edge when it comes to
attracting businesses operating in the services and services to industry sectors.
Of course, EU 15 regions have reacted to protect their competitiveness and attractiveness
and to leverage their strengths.
In this context, the issue is: "What can EU regional development agencies do to attract
foreign companies?".
First, they can adjust the range of services they provide to match new business settlement
criteria and tailor provision to the requirements of specific industries identified as preferential
targets.
Examples of this are found in action taken to promote regional assets, abilities or
attractiveness in fields including research and innovation, labour quality, proximity of
subcontractor networks and infrastructure accessibility and quality—namely when it comes
to innovation technologies. Obviously, biotech or pharmaceutical companies will not be
looking at the same criteria to evaluate regional attractiveness as manufacturing industries,
call centres or logistics companies.
Second, RDAs aim to provide quality after-sales services, namely by helping foreign
companies comply with