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Targeting policy as a competitive atrategy for european inward investment agencies

Wilson, Alan (1994) Targeting policy as a competitive atrategy for european inward investment agencies. European Urban and Regional Studies, 1 (2). pp. 143-159. ISSN 0969-7764

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This article provides a framework to assist the target ing activities of European inward investment agencies (IIAs), recognizing that historically inward investment has not fulfilled the desired role of facilitating self- sustaining and innovative economic development in many European regions. While many such agencies do target their promotional programmes, the variables utilized in defining target markets have been in sufficiently directed to the real issues in economic development. Using techniques applied in industrial products' marketing, a new approach is presented, which relates the desired outputs from inward invest ment (based on a segment's level of economic impact indicators and their weighted importance) to the competitive advantages of countries and regions (based on the country's strengths and weaknesses relative to each segment's requirements). In this model, the economic impact indicators go well beyond simply employment creation to consider other employment indicators as well as trade and balance of payments and technology transfer indi cators which are critical to economic development. A matrix of appropriateness is developed which identi fies the segments that should be targeted by the par ticufar IIA based on the attractiveness of the segment and country competitive advantages. Operational considerations are reviewed and policy implications discussed.