Template-type: ReDIF-Paper 1.0
Author-Name: Filippov, Sergey
Author-Email: filippov@merit.unu.edu
Author-Workplace-Name: UNU-MERIT and Technical University Delft
Author-Name: Guimon, Jose
Author-Email: jose.guimon@uam.es
Author-Workplace-Name: Department of Economic Structure and Development Economics,
	 Universidad Autonoma de Madrid
Title: From Quantity to Quality: Challenges for Investment Promotion Agencies
Abstract: Most investment promotion agencies worldwide are now placing a higher 
	 emphasis on attracting high "quality" FDI, including R&D centers and 
	 headquarter functions as well as knowledgeintensive industries such as 
	 information and communication technologies, biotechnology or 
	 nanotechnology. We argue that this requires a different approach than 
	 policies focused on the "quantity" of FDI inflows, leading to changes in 
	 the policy mix and in the approach to performance measurement. Targeting 
	 quality entails a shift from a mindset that prioritizes attraction of 
	 greenfield investments towards one where the focus is on subsidiary 
	 development. Another implication is that the interplay between FDI 
	 policies and innovation policies becomes more relevant and needs to be 
	 further nurtured. We focus on the management challenges that investment 
	 promotion agencies face in this transition from quantity to quality, 
	 drawing attention to the consequences for their human capital, 
	 structural capital and relational capital strategies.
Classification-JEL: E61, F23, H83, O38
Keywords: Aftercare, FDI, intellectual capital, investment promotion, R&D,
	 subsidiary development
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 057
File-URL: http://www.merit.unu.edu/publications/wppdf/2009/wp2009-057.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009057