2015年-世界发展银行全球_What_Do_Multinational_Firms_Want_from_Cities____Competitive_Cities_for_Jobs_and_Growth_Companion_Paper_5_26页_1mb

报告摘要

Summary of "Competitive Cities for Jobs and Growth: What Do Multinational Firms Want from Cities?"

Core Content

This paper explores the factors that influence the location decisions of multinational corporations (MNCs) and the strategies cities can adopt to attract and retain foreign direct investment (FDI). It is part of the "Competitive Cities Knowledge Base" project by the World Bank Group, aimed at improving understanding of city competitiveness and its impact on economic growth and job creation.

The study highlights that while FDI is a critical driver of economic development, especially in developing countries, the process of selecting a city for investment is complex and involves multiple stages. Cities must understand not only the general factors that influence FDI, such as macroeconomic stability and infrastructure, but also the more nuanced elements that can tip the balance in favor of one city over another.

Main Objectives

To identify the key factors that MNCs consider when making location decisions.
To understand the role of cities in influencing these decisions.
To provide actionable recommendations for city governments to improve their competitiveness in attracting FDI.

Key Findings

3.1 The Fundamentals: Main Decision Factors During Investment Attraction Stage

The fundamental factors that influence location decisions include:

Location endowments: Proximity to major markets/distributors, access to natural resources, and logistics infrastructure.
Relationship with the city: Personal connections, city image, and the responsiveness of local investment promotion intermediaries (IPIs).
General business environment: Macroeconomic stability, regulatory environment, labor availability and costs, infrastructure, and availability of land.
Sector development: Presence of forward- and backward-linkage firms, and similar firms or competitors in the area.

These factors are often weighted differently based on the firm’s expansion motive and sector.

3.2 Individual Perceptions Influence Location Choices

The personal preferences and perceptions of top corporate decision-makers can significantly affect location choices. These include:

Trust in local officials
Cultural and national background
Personal preferences for quality of life
Risk tolerance

These "soft" factors can be as important as tangible ones in the final decision-making process.

3.3 Retaining and Growing Current Investors Is Often Overlooked

While cities focus on attracting new investors, the value of retaining and growing existing ones is often underappreciated. Building long-term relationships with current investors can be more impactful in sustaining FDI than solely focusing on new attraction.

Key Promotion Efforts by Cities

Cities can enhance their appeal to MNCs by:

Identifying and communicating the city's value proposition: Clearly articulating what the city offers in terms of infrastructure, labor, and business environment.
Building a strong city image: Creating a positive perception among potential investors, especially in the early stages of consideration.
Effective cross-unit coordination: Ensuring that different city departments and local networks work cohesively to support investors.
Incentives and aftercare services: Offering both fiscal and non-fiscal incentives, as well as ongoing support to ensure smooth operations and growth.

Investment Lifecycle and City Roles

The investment lifecycle is divided into four key stages:

Investor Attraction: Cities aim to get onto the investor's long list by showcasing their strengths and business environment.
Short-listing and Decision: Cities actively engage with investors to provide detailed information and facilitate their decision-making.
Entry and Operations: Cities assist investors in setting up operations by coordinating with local agencies and providing necessary contacts and information.
Retention and Expansion: Long-term support and relationship-building are essential to retain and grow existing FDI.

Recommendations

Tailor promotion strategies to specific sectors and motives: Cities should understand the different needs of MNCs based on their expansion motives (market-seeking, efficiency-seeking, strategic asset-seeking, resource-seeking).
Focus on the "last mile" of the investment process: After narrowing down to a few final candidates, cities must provide timely, effective, and personalized support to stand out.
Improve local administrative efficiency: Even within a favorable national framework, the performance of local administrative bodies can greatly influence investor perceptions.
Leverage both national and city-level IPIs: Collaboration between national and local investment promotion entities can enhance a city's visibility and attractiveness to international investors.
Prioritize quality of life and cultural fit: These personal factors are increasingly important in final decisions, especially for professional services and high-end firms.

Conclusion

Cities that successfully attract FDI often do so by understanding the specific needs of MNCs and tailoring their strategies accordingly. While macroeconomic and institutional factors are important, the personal and relational aspects of the city-business interaction can be decisive. The paper emphasizes the need for cities to adopt a holistic, proactive, and coordinated approach to investment promotion, with a particular focus on the final stages of the decision-making process.

Appendices Overview

Appendix 1: Deciding factors by MNC expansion motive.
Appendix 2: Deciding factors by MNC sector.
Appendix 3: Example survey results on FDI determinants.
Appendix 4: A typical investment lifecycle, including stages beyond attraction and operations.