This snapshot taken on 08/01/2008, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
 
 08 January 2008
Confident Consumers - A Fair Deal creating Prosperity & Success for All
 
You are here:
 

Getting the most from foreign direct investment

Purpose

To increase the contribution of foreign direct investment to economic activity in the UK, including Research and Development (R&D).

How will this be achieved?

By providing strategic engagement with overseas owned companies about initial investment or partnerships, or continued growth and development of business based in the UK – for example, through partnerships, capital investment and supply chain linkages.

Why offer public sector support?

Knowledge spillovers from inward investment contribute productivity benefits to the UK which are not fully internalised. Inward investment, in the UK, would also be hindered by network and intermediation failures which act as barriers to entry for overseas firms.

What will be offered?

A mechanism for gaining understanding of inward investors’ perceptions and concerns about the UK as a place to do business, and give inward investors a ‘voice in Government’ on policy issues affecting their business.

Information, advice, and tailored help would be provided for potential and existing inward investors, to help them with the decision to invest in the UK and, once invested, to develop their UK based business. This can relate to any aspect of business relevant to the high level aim of increasing the contribution of foreign direct investment to economic activity in the UK, including R&D.

The types of assistance to be provided are as follows:

  • provision of persuasive value propositions tailored to the overseas headquartered company’s own development plans seeking to persuade the company of the benefit of locating in and growing from a UK base internationally, including visits overseas to make business case for investing.
  • provision of general or tailored information specific to influencing a favourable investment decision – including detailed property searches.
  • facilitating access to the huge R&D resources present in the UK, as well as technology best practice schemes, to bring added value to both UK and international operations.
  • brokering links between inward investors and UK university and FE colleges to facilitate more effective partnerships in developing demand-led training courses and work placement schemes, and opportunities for graduate recruitment.
  • ongoing strategic discussion with companies to help existing inward investors businesses develop and grow. Advice on the regulatory framework in the UK, and how best to work with legislative bodies; as well as a selective 'trouble-shooting' to help investors with specific UK regulatory or legislative concerns that are impacting adversely on their competitiveness.
  • assistance with immigration issues; i.e. assisting client transit through UK borders and occasional selective direct intervention with immigration authorities.
  • introduction to national and regional process improvement initiatives and innovative production techniques to help clients remain internationally competitive (to be consistent with the support provided under the Business Expertise product).
  • provision of advice to identify available labour with appropriate skills, achieve successful recruitment and develop and retain clients workforce, including aassistance with relocating of staff.
  • provision of information and signposting to services that contribute positively to perception of the UK as a place in which to grow an inward investor’s business, addressing information market failures.
  • provision of advice to attract overseas based entrepreneurs and early stage technology businesses to the UK.
  • organisation and hosting of tours/visits to regions/UK by potential inward investors and overseas multipliers to demonstrate location strengths.
  • understanding of inward investors’ perceptions and concerns about the UK as a place to do business, and providing inward investors with a voice in Government on policy issues affecting their business.
  • help and assistance to overcoming language and cultural barriers to investing in the UK.
  • liaison with private sector companies including property and construction firms and financial and professional services to help inward investors to start successfully.
  • provision of information and advice on financial assistance, funding or support grants and access to private venture capital - and assistance in applying for these.
  • developing exports – market information and introductions to potential partners.
  • supply chain development and manufacturing efficiency (to be consistent with the support provided under the Business Expertise product).
  • connecting and communicating with Government and its departments.

Who will be eligible?

All types of assistance will be available to sources of Foreign Direct Investment which have not established a foothold in the UK.
Those who already have a foothold in the UK should not receive assistance additional to that available to UK based companies, as provided through other products.

 

© Crown copyright 2007