Technology Infusion for FDI Attraction; Accelerating Local Economic Development

ATTRACT FOREIGN DIRECT INVESTMENT TO YOUR REGION: In recent times, investors have shifted to research Online Communities, Social Networks, and Search Engines to determine interesting and classified zones for investments. They then choose to follow up their interest in a regions economic offering by a deeper dive to study data available from whitepapers, webcasts, videos and other online educational media.

Herein comes the digital transformation of a destination looking for attracting FDI

In other words, targeting the right investors to accelerate their implementation of the investment process, through technologies and investor facilitation services. This would lead to job generation and economic spillover. These are some of the technology infusion pointers:

1. To begin with, identify the right industries, companies and Investors for your region. Determine the ideal profile of the investor you wish to attract to your region; whether it is industrial, commercial or tourism-focused based on the USP of your destination and other factors such as the business opportunities potential, the infrastructure, the supply chain needs with regional purchasing pools.
2. Secondly identify the best players that match ideal investor profiles on the international arena, including associations and affiliations. Select the top 10 companies and analyze their full profile to determine their area of work and their current scope of operations so that you can showcase the “Unique Value Proposition” of your destination
3. Create a Soft Landing Program to facilitate the investor companies
   Assemble resources and local information that could be of value for the interested company to relocate in your region. Information such as infrastructure, accessibility, connectivity, quality of life, supply base, academic infrastructure, etc. A group of Soft Land service providers with specialization will work well to assist in investor facilitation.
   It is quite advisable to develop an Investor facilitation Incubator Program as it can help cut through the red-tape and fast track the business relocation initiative. Even a local administrative umbrella program that supports the international investors with legalities, customs, human resources, fiscal, accounting, compliance, and so on can go a long way to make your destination a preferred choice.
4. “Investment Opportunity” Seminars, a Book and videos about the region
   A series of webinars, book and videos that highlights the business opportunity and advantages of your region acts as an added information pools for the educated investor to learn about the many aspects that can support in their decision making. These information tools can be used to effectively showcase your local and regional market composition of consumers, distributors, competitors and local suppliers.
   It is also important for the investor to get an overview of the Human resources available in your region along with their cost, turnover, skill set, wages, benefits, productivity and quality; not to overlook on the personal front the Business environment, Infrastructure & Quality of life. This detailed information can then be made into a book and videos to be distributed through Embassies and Business associations.
5. Soft landing services cell
   Another important aspect of facilitating an investor to choose your region as an investment destination is to create a Soft landing services cell that can help them get started with all Operational permits and operational cost models. This cell can also support them with a step by step process to start business operations in the region.
6. A comprehensive Website with a perspective overview
   A detailed website that not only gives a macro view of the investment advantages of you region but also supports in decision making with key information for investment calculation. This key information can be broadly termed as The Investment Opportunity FAQs, Cost calculator, Testimonials and Success Stories along with the local area information such as maps, available infrastructure, connectivity, accessibility and quality of life. The website becomes more effective by showcasing the Companies already successfully established in your region as a testimonial by itself, along with a calendar of the planned trade missions that the investor could join.
7. An online global campaign through social media networks and web media
   The final step of publicizing the destination is to launch a global campaign virtually with a calendar of trade missions. This could be organized in conjunction with the embassies and associations so that when the visitors arrive, the region can be showcased in the most effective way.

Plan and schedule investor meetings with international companies already established in the region, as nothing speaks better to build trust and confidence than an honest testimonial. Organize meetings with government officials for policy and incentives, academia to showcase human resources and skills, golf courses and tourism for experiencing the quality of life and soft land incubators that make it easy to establish business in the region; These are the focus areas for investor facilitation.

This new wave of adopting digital transformation helps to attract OEMs. This in turn helps local manufacturers supply the required components – An opportunity for import substitution and increasing jobs. Technology plays a vital role in integrating and accelerating productivity, impacting Foreign Direct investment and bringing economic development and prosperity to destinations.

Written by Shanker Damodaran.