Policy principles for attracting international investment

Governments seek a coherent and efficient strategy based on the right mix of policies reflecting the simultaneous importance of several location factors and in direct relation to the characteristics of the host country. To attract international investments in innovation, governments need to implement a broad, horizontal strategy including close co-ordination/integration of innovation policy and inward investment promotion policies. Careful attention has to be paid to direct incentive packages which may give rise to increasing policy competition between countries.