Monday, December 08, 2008

UK losing out to the new members of the EU in attracting FDI

With the expansion of the EU with ten new members in 2004, and more set to join in 2007, foreign investors have a much broader selection of lower-wage markets and skill sets from which to choose. The UK has positioned itself as a mature market, producing higher-value goods and services and with a highlyskilled workforce, and continues to be the leading investment location in Europe, according to the UNCTAD World Investment Report 2006.

In line with its positioning as a high-value market, the UK attracts more European headquarters and R&D projects than any other European country1. The UK's focus is to attract hi-tech companies, and exploit the wider aspects of innovation in a variety of knowledgedriven industries.

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