Incentive Alignment

Crafting an Investment Promotion Action Plan is about aligning key stakeholders around a defined strategy and mutually accepted targets.

An investment promotion Action Plan provides key decision-makers with a plan for attracting both domestic and foreign direct investment (FDI). It identifies important categories of key constituencies that should be involved in developing the strategy and the mechanisms for involving these constituencies. It takes into account the national and/or regional IPA’s investment promotion strategy as well, in an effort to leverage the capabilities, resources and incentives of existing IPA targets. It defines objectives KPIs and standardized metrics for evaluation. 

Incentive Alignment

The IPAs role in aligning public-private incentives.

By aligning a promotion strategy to incentivize shared value creation, the public sector can signal its commitment to achieving social objectives.

Setting Targets for an Investment Promotion Action Plan.

It is at this point that targets for attracting inward investment are set (e.g. number of projects, number of new jobs, amount of investment etc.) as well as targets for the IPA in focus (e.g. number of new and existing investors contacted, specific marketing actions to be completed, number of leads to be generated).

The target volume of inward investment.

A regional IPA should set an annual target for how many inward investment projects it aims to attract to the city. Many regions publish an annual report, outlining their annual results in attracting inward investment. This is an important element of good governance and policy advocacy.

The number of prospects required to achieve this aim.

Inputs lead to outputs, and unless there is enough activity to generate an investment, the end results may not be achieved. To calculate what an activity target needs to be, an IPA can work back from its inward investment targets, applying the rough 20% rule in investment promotion.

Target Graphic/Numbers

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