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Attractiveness for Innovation

Location Factors for International Investment

image of Attractiveness for Innovation

Attractiveness for investment in innovation is high on the policy agenda in many countries as innovation is a key factor of growth and competitiveness in OECD countries. Virtually all governments are keen to attract international investment by multinational enterprises (MNEs) as a means to promote growth and employment, create new jobs and bring in new technologies.

While all countries and regions have some policy measures in place that are aimed at increasing their attractiveness for innovation, it is less clear if these policies are effective.

This report analyses the current trends in international investment in innovation and the attractiveness policies already implemented. These are often based on the more traditional instruments for attracting international investment. The book also explores in more detail the role of investment incentives that governments tend to give to international investors: their rationale, their impact and their usefulness.

The evidence presented in this report raises clear policy issues and questions existing policies. A number of policy principles are formulated to guide policy makers.

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Attractiveness policies for investment in innovation

Attractiveness for international investments in innovation is a policy priority in most countries as almost all governments currently target international investments in high-technology industries and in innovation and R&D. The typical policies used by governments are broader innovation policies, investment promotion complemented in several countries with direct government incentives.

English

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