Open for Investment: How the Region Competes for Global Capital

In a competitive global economy, regions around the world vie to attract investment from international companies, investment that brings jobs, expertise and growth. The North East has long punched above its weight in this contest, drawing significant inward investment despite the dominance of London.

But in a challenging global climate, the competition is fierce.

What Inward Investment Means.

Inward investment, often called foreign direct investment, refers to investment by overseas companies in a region, whether by setting up new operations, expanding existing ones, or acquiring local businesses. Such investment is highly prized because it brings jobs, capital, skills and connections to global markets.

For a region seeking to grow its economy, attracting inward investment is a key goal. The arrival of an international company can transform a local economy, as the region knows well from its own history.

The Region's Record.

The North East has a strong record of attracting inward investment, securing dozens of projects and thousands of jobs in a typical year. Relative to its size, the region attracts a significant share of the investment that comes to England outside London, punching above its weight in the contest for global capital.

This success reflects the region's genuine strengths, from its skilled workforce and lower costs to its emerging industries and quality of life. The region has shown it can compete for and win international investment.

Built on Strengths.

The investment the region attracts is increasingly drawn to its areas of genuine strength, particularly its emerging industries. The region's strengths in electric vehicles, renewable energy and advanced manufacturing have made it a magnet for investment in these growing sectors.

This points to a virtuous circle, in which the region's success in growing new industries attracts further investment, which in turn strengthens those industries. Building on these strengths is central to the region's investment strategy.

The London Challenge.

The region's success must, however, be set against the dominance of London, which attracts a hugely disproportionate share of the country's inward investment. The capital draws a large share of the investment projects and jobs that come to the country, leaving the regions to compete for the rest.

This concentration of investment in London is part of the wider imbalance in the national economy that the region's challenges reflect. Rebalancing investment towards the regions is a long-standing ambition that has proved hard to achieve.

A Challenging Climate.

The region's efforts to attract investment take place against a challenging global backdrop. The level of investment coming to the country as a whole has been under pressure, affected by economic uncertainty, global tensions and shifting trade relationships.

In this climate, the competition for the investment that is available has intensified, making the region's efforts to attract its share all the more important. Navigating these headwinds is a real challenge.

The Role of Promotion.

Attracting investment does not happen by accident, but requires active effort to promote the region and support investors. A dedicated agency works to attract investment to the region, showcasing its strengths to international companies and supporting them to locate and grow here.

Devolution, too, offers an opportunity, giving the region more ability to shape its own economic destiny and to make the case for investment. Promoting the region effectively is central to winning investment.

Why It Matters.

The investment the region attracts matters greatly, bringing jobs, skills and growth that benefit communities across the area. The thousands of jobs created by inward investment each year are a significant contribution to the regional economy and to the livelihoods of local people.

Beyond the immediate jobs, inward investment brings expertise, connections and confidence that strengthen the wider economy. For a region seeking to grow and prosper, attracting investment is a vital part of the picture.

Winning the Future.

The North East's success in attracting inward investment, punching above its weight despite the dominance of London, is a genuine strength, bringing jobs, skills and growth, increasingly built on the region's emerging industries. In a challenging global climate, the competition for investment is fierce.

Continuing to compete and win in this contest, by building on the region's strengths and promoting it effectively, is central to its economic future. For a region open for investment, attracting global capital is key to winning the future.

Investment and Identity.

The region's success in attracting inward investment is bound up with questions of identity and confidence, as well as economics, reflecting how the region sees itself and is seen by others. For a region that has experienced significant economic decline, the ability to attract investment from international companies is more than an economic achievement, for it is also a vote of confidence in the region and its future.

When a major international company chooses to invest in the region, it sends a powerful signal that the area is a place worth investing in, with the skills, infrastructure and opportunities that businesses need. This can have a confidence-building effect that goes beyond the immediate jobs and investment, helping to change perceptions of the region, both among outsiders and among its own people.

The region's history offers a powerful example of this, with the arrival of major international investors having transformed not just the local economy but the region's sense of itself and its possibilities. Building on this, the region's continued success in attracting investment helps to reinforce a narrative of a region on the up, an attractive and dynamic place to do business.

This matters because perceptions can become self-fulfilling, with a positive reputation attracting further investment and talent, while a negative one can deter them. Promoting the region effectively, and showcasing its genuine strengths and successes, is therefore about more than marketing, for it is about building the confidence and reputation that underpin economic success.

For the North East, attracting investment is both a cause and a consequence of growing confidence in the region and its future, a virtuous circle that the region is working to strengthen. Investment and identity, in this sense, are closely intertwined.

Share your thoughts.

The North East attracts dozens of inward investment projects and thousands of jobs a year, punching above its weight despite London's dominance.

What would make the region more attractive to local/global investors?