Abstract
Both emerging and OECD markets are constantly making efforts to attract foreign direct investment (FDI). Over the past few decades, investment promotion has steadily become more professionalized. This chapter identifies best practice by the investment promotion agencies, which that integrate sustainability most effectively into their FDI promotion policies. The environment for investment promotion agencies is currently undergoing rapid changes, which are giving rise to new business models and practices. At present, the latest generation of IPAs can only be found sporadically around the world: These fourth-phase IPAs take sustainability criteria into account more or less explicitly in their investment promotion activities. Such sustainability criteria relate to economic, social, and environmental factors.
Sweden is one of only a few countries worldwide where investment policies are actually based on strategic requirements set out in a national action plan for businesses and human rights. In line with this action plan, the Swedish IPA also implements a strategy of excluding potential projects that do not fulfil the requirements relating to human rights.
The Austrian IPA, the Austrian Business Agency, does not focus explicitly on sustainability targets, as this is currently not part of its mandate. As with all other regional investment promotion agencies, its primary goal is to maximize the level of investment.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
This refers to new digital business models under which operations can be either fully or partially dispersed. WhatsApp is a well-known example. A leading global digital communication company, it has around 50 employees and more than a billion users. It was sold to Facebook for over USD 10 billion.
- 2.
A current example is the extension of the broad gauge rail line from Kosice, Slovakia, to Austria. As the plans and calculations show, this could generate commercial benefits for Austrian freight companies. It could also possibly result in increased value added in Austria, although there would be at least a partial decrease in added value at the current end of the line in eastern Slovakia. From a European viewpoint, faster connections to production facilities in China might lead to increased pressure on Europe as a business location.
- 3.
See www.waipa.org (accessed 7 Oct. 2017). WAIPA’s objectives do not (yet) contain any references to sustainable development. For capacity reasons, Austria is not a member of WAIPA.
References
Bertelsmann Stiftung, SDS Network (2017) Global responsibilities: international spillovers in achieving the goals. SDG index and dashboards report 2017. https://www.sdgindex.org/assets/files/2017/2017-SDG-Index-and-Dashboards-Report%2D%2Dfull.pdf
Breinbauer A, Schuh A (2011) Headquarterstandort Österreich: Infrastruktur, Innovationskraft, Interkulturalität. IDM Info Europa 2011:5
CDP (2016) Out of the starting blocks: tracking progress on corporate climate action. Carbon Disclosure Project. https://b8f65cb373b1b7b15feb-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/cms/reports/documents/000/001/228/original/CDP_Climate_Change_Report_2016.pdf?1485276095. Accessed 25 Feb 2019
Dressler A (2018) Competition for investment. WAIPA presentation “FDI Essentials”
Dunning JH (1980) Toward an eclectic theory of international production: some empirical tests. J Int Bus Stud 11:9–31. https://doi.org/10.1057/palgrave.jibs.8490593
Dunning JH (1988) The eclectic paradigm of international production: a restatement and some possible extensions. J Int Bus Stud 19:1–31. https://doi.org/10.1057/palgrave.jibs.8490372
Homlong N, Springler E (2016) Ökonomische Ansätze zur Erklärung der Attraktivität Europäischer Staaten für Chinesische Direktinvestitionen. Working paper series by the University of Applied Sciences BFI Vienna. 92/2016
Jäger J, Springler E (2015) Eigentumsstrukturen, grenzüberschreitende Investitionen und Entwicklungsdynamiken. Working paper series by the University of Applied Sciences BFI Vienna. 87/2015
Lim S-H (2008) How investment promotion affects attracting foreign direct investment: analytical argument and empirical analyses. Int Bus Rev 17:39–53. https://doi.org/10.1016/j.ibusrev.2007.09.001
Meissner H (2013) Der “Ressourcenfluch” in Aserbaidschan und Turkmenistan und die Perspektiven von Effizienz- und Transparenzinitiativen. Lit, Berlin
Musil R (2013) Wien in der Weltwirtschaft: Die Positionsbestimmung der Stadtregion Wien in der internationalen Städtehierarchie. Lit, Wien
Nachbagauer AGM (2015) Internationalisierungstheorien und sozioökonomische nachhaltige Entwicklung von Headquartern. Working paper series by the University of Applied Sciences BFI Vienna. 86/2015
Nachbagauer AGM, Waldhauser B (2017) Standortkriterien zur nachhaltigen Ansiedlung von regionalen Headquartern. Working paper series by the University of Applied Sciences BFI Vienna. 93/2017
OECD (2018) Mapping of investment promotion agencies in OECD countries. http://www.oecd.org/investment/investment-policy/mapping-of-investment-promotion-agencies-in-OECD-countries.pdf
Sofka W et al (2015) Foreign divestment: what stays when multinationals leave? In: Perspectives on topical foreign direct investment issues. Columbia Center on Sustainable Investment. No. 155, New York
UNCTAD (2015) Investment policy framework for sustainable development. United Nations, New York
UNCTAD (2017a) Investment facilitation: a review of policy practices. United Nations, New York
UNCTAD (2017b) World investment report 2017. United Nations, New York
WAIPA (2016) 2015–2016: WAIPA report of activities, Geneva
WAIPA (2019) Overview of investment promotion: report of the findings from the WAIPA annual survey of 2018
WAIPA, VCC (2010) Investment promotion agencies and sustainable FDI: moving toward the fourth generation of investment promotion. Report of the findings of the VCC—WAIPA survey on foreign direct investment and sustainable development, Geneva
Wells LT, Wint AG (2000) Marketing a country: promotion as a tool for attracting foreign investment. Revised edition. Foreign investment advisory service occasional paper no. FIAS 13. The World Bank, Washington, DC
World Bank (2017) Investment policy and promotion diagnostics and tools: maximizing the potential benefits of foreign direct investment (FDI) for competitiveness and development (English). World Bank Group, Washington, DC
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Breinbauer, A., Leitner, J., Becker, K. (2019). Sustainable Location Development: How Do Investment Promotion Agencies Go About Attracting Sustainable Foreign Direct Investment?. In: Breinbauer, A., Brennan, L., Jäger, J., Nachbagauer, A.G.M., Nölke, A. (eds) Emerging Market Multinationals and Europe. Springer, Cham. https://doi.org/10.1007/978-3-030-31291-6_9
Download citation
DOI: https://doi.org/10.1007/978-3-030-31291-6_9
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-31290-9
Online ISBN: 978-3-030-31291-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)