Many of the country’s most dynamic innovation ecosystems benefit largely from the critical contributions of outside practices, new technologies, and ideas brought by foreign companies.įor example, Wichita, Kan., with its rich aviation history, hosts a significant concentration of expertise in aerospace-appealing to foreign aircraft companies.

metro areas are developing FDI strategies to solidify their established industry clusters. And they acknowledge the importance of mergers and acquisitions (M&A) and the fundamental connections between FDI and exports. They intentionally target foreign markets. They are now better connecting their international outreach strategy in service of local priority sectors. As we explain in this brief, EDOs have gained a more sophisticated approach to FDI. Foreign activity can also catalyze additional foreign investments by signaling the region’s attractiveness globally.Įight years into the Global Cities Initiative, many EDOs have developed plans to mainstream FDI into broader economic development strategy.

Foreign investment contributes to-and in some case drives-economic, innovation, and exports growth by infusing knowledge, technology, and global supply chain connections into local communities. EDO leaders invest the time, expertise, and resources required to recruit foreign businesses because they acknowledge the innate advantages of attracting foreign-owned firms. This represents an increasing trend in which regional EDOs proactively seek FDI and make it an integral part of their mission.

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