IBM Annual Survey: Europe Regains Number One Position for Inward Investment

IBM Annual Survey: Europe Regains Number One Position for Inward Investment

IBM’s (NYSE: IBM) annual survey of countries receiving investment from multinational companies in the areas of manufacturing, services and R&D reveals Europe regained from Asia its top position in 2005, attracting 39 percent of all projects. Asia attracted 31 percent of all projects. In 2004, both regions tied at 35 percent. The survey by IBM-Plant Location International (IBM-PLI), the global location strategies service within IBM Global Business Services, reports a slight rebound by mature economies due to strong economic growth while some leading emerging markets cooled after a number of years of very strong investment.

Business services ranked as the most popular type of inward investment project, accounting for 20 percent of all global projects, while manufacturing investment decreased globally on average by 20 percent — to some 800 projects per quarter in 2005. Investment in new R&D centers remained fairly stable in 2005 at 200 projects every quarter globally. Additionally, the survey found 15 countries again receiving 70 percent of overall inward investment. Four countries entered the top 15 in 2005 — Poland, Romania, Singapore and UAE, replacing Hong Kong, Hungary, Spain and Sweden. Notably, the United Kingdom, France and Poland won considerably more investment and increased their market share.

“Even though mature economies have caught up slightly, the survey illustrates multinational companies can increasingly seek talent pools anywhere in the world,” said Roel Spee, co-leader of IBM-Plant Location International. “Global competition for new jobs and capital investment is increasing continuously; developed and developing regions must continually define and implement new strategies to attract investment. Competitiveness in innovation and technology-driven strategy will play a vital role in creating new economy jobs.”

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