Policy Toolkit for Strengthening FDI and SME Linkages

image of Policy Toolkit for Strengthening FDI and SME Linkages

Strengthening linkages between foreign direct investment (FDI) and small and medium-sized enterprises (SMEs) is important to boost productivity and innovation across countries and regions in the OECD and beyond. This policy toolkit offers policy advice to national and subnational governments on how to increase knowledge and technology benefits from FDI on domestic SMEs and the local economy. It presents a conceptual framework for understanding the main enabling conditions and diffusion channels of FDI-SME linkages and spillovers, and a set of diagnostic tools to assess the spillover potential. It also provides an assessment tool for policy and institutional frameworks enabling FDI-SME linkages. This toolkit benefits from insights of a pilot mapping of policy initiatives across the 27 EU Member States, which are described in the second part of the report.


The policy mix for strengthening FDI-SME linkages and spillovers

This chapter reviews the mix of policies that is in place to foster FDI-SME linkages across the 27 EU Member States. It presents the national policy frameworks that support FDI-SME diffusion channels and enabling conditions, and the policy instruments used to strengthen productivity spillovers from foreign investors to domestic SMEs. It also examines various aspects of policy making, such as targeting towards different types of firms, sectors, value chains or regions, and coordination and monitoring.


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