Success factors in investment promotion strategy : a comparative study for the electronics and IT sectors in Ireland and Malta

Abstract

This document is essentially a comparative study between the Republic of Ireland and Malta in order to identify the critical success factors in investment promotion strategies, focusing mostly on the electronics and IT sectors. The main objective of this research is to establish the determinants of the relative success and failure of countries in attracting FDI projects, thereby providing a framework within which policy towards investment promotion in the electronics and IT sectors can be formulated. In this regard, a survey was carried out in both countries so as to be able to compare the performance of investment in the specific sectors of electronics and IT in both countries. From the analysis carried out, it resulted that success factors in investment promotion strategies pertain to the maintenance of a competitive cost base, the achievement of high levels of productivity, the development of an excellent information and communications infrastructure, the development of an excellent transport access, the development of sub-supply infrastructure, investment in education and training, the development of adequate business support programmes, the maintenance of an attractive business package as well as the development of an all integrated business approach. From the study, it resulted that success factors do not solely pertain to a given set of locational advantages faced by a country, but to the enhancement and management of these advantages over time. Only such a process can ensure the sustainability of a competitive edge.