This chapter is a country case study. It looks at specific ways to enhance a country’s productivity levels through focusing on boosting the competitiveness of selected economic sectors. The chapter also looks at other elements likely to affect the general attractiveness of the business environment, such as a new Tax Code. Ukraine’s size, qualified labour force and natural endowments combined to make it one of the fastest growing economies in Europe between 2000 and 2008. Following its deeply-felt recession of 2009, Ukraine resumed positive growth in 2010. However, the recession exposed severe structural weaknesses in the economy, especially with regard to the underused potential of many of its economic sectors. Among the key challenges it must address to improve competitiveness and embed sustainable economic growth are: a low level of FDI per capita, an unfavourable business climate, high external debt, inadequate implementation of laws and the lack of a long-term strategy for investment policy and promotion. For optimum effectiveness of FDI it must be both diversified and its investment policies and promotion must be made sector-specific. Investment and promotion strategy and recommendations must focus on how to differentiate Ukraine and show its uniqueness for investment, how to identify sector-specific policy reforms, how to promote specific sectors, how to implement and monitor reform, how to evaluate progress and how to enhance its policy convergence with OECD investment instruments. The sectors identified for further study of their competitive advantage are Ukraine’s grain and dairy sectors, energy production based on biomass and the civil aviation manufacturing sector.