Framework for Selecting an Investment Promotion Partner

To help economic development organizations (EDOs) make informed decisions about selecting an investment promotion partner, the following framework model outlines key factors to consider. This model is divided into two main categories: “Why” (the motivations behind partnering) and “When” (the optimal timing for partnership).

Why Partner with an Investment Promotion Agency?

• Expertise and Experience
• Definition: IPAs have specialized knowledge and practical experience in attracting investments.
• Evaluation Criteria:
• Track record of successful projects
• Industry-specific knowledge
• Proficiency in investment promotion techniques
• Network and Relationships
• Definition: IPAs possess extensive networks and strong relationships with key stakeholders.
• Evaluation Criteria:
• Quality and breadth of connections
• Influence within relevant sectors
• Ability to facilitate introductions and negotiations
• Market Intelligence
• Definition: IPAs gather and analyze market data to provide actionable insights.
• Evaluation Criteria:
• Access to comprehensive data sources
• Analytical capabilities
• Insightful market reports and trend analysis
• Enhanced Credibility
• Definition: Partnering with a reputable IPA can boost an EDO’s credibility.
• Evaluation Criteria:
• Reputation and standing of the IPA
• Client testimonials and case studies
• Industry recognition and awards

When to Partner with an Investment Promotion Agency?

• At the Inception of Investment Promotion Activities
• Indicators:
• EDO is new to investment promotion
• Need for foundational strategies and processes
• Desire for staff training and capacity building
• During Market Expansion Initiatives
• Indicators:
• EDO aims to enter new markets
• Need for targeted industry expertise
• Requirement for efficient identification and engagement of target investors
• To Boost Specific Investment Campaigns
• Indicators:
• Launch of targeted investment campaigns
• Focus on specific sectors or regions
• Need for amplified impact through tailored strategies
• During Economic Downturns or Crises
• Indicators:
• Navigating economic uncertainty
• Need for risk mitigation strategies
• Desire to maintain investor confidence
• To Achieve Long-term Economic Development Goals
• Indicators:
• Focus on strategic, long-term goals (e.g., diversification, innovation, sustainability)
• Need for a comprehensive and aligned approach
• Desire for consistent progress towards development objectives