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.

Executive summary Chapter 1. International investment in innovation -Steady growth in international investments and the activities of multinational enterprises -International investments in innovation on the rise -A growing market share of international investments for emerging countries -The impact of the recent economic crisis -References Chapter 2. Location factors for international investment in innovation -Attractiveness, location factors and multinational enterprises -The need for differentiated analysis -Attractiveness for innovation: an industry approach -Attractiveness for innovation: a business function approach -References Chapter 3. Attractiveness policies for investment in innovation -The policy priority of attractiveness for innovation -A taxonomy of attractiveness policies for investment in innovation -Direct government incentives for investment -Inward investment promotion -References Chapter 4. Policy principles for attracting international investment -Reference