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Optimization of Location Marketing for the Portuguese Investment Promotion Agency
Challenge

Decline in foreign direct investment in Portugal (PT) as a result of the EU eastward enlargement – supporting the Portuguese Investment Promotion Agency (AICEP) in location marketing with a focus on German companies

Approach

Location analysis

  • Expert interviews with associations, clusters, authorities, and Chambers of Commerce, as well as a management survey among German companies with operations in PT

  • Research and evaluation of available metrics (World Bank, WEF, OECD, Eurostat, etc.) to underpin location advantages


Derivation of suitable target sectors ("Who?")

  • Analysis of capital stock development and evaluation of location factors regarding suitability for specific sectors and value-added activities

  • Derivation of promising target sectors (e.g. bioengineering, software development) and value-added activities (e.g. R&D, SSCs)


Derivation of suitable messages ("What?")

  • Selection and prioritization of suitable arguments per sector and identification of pseudo-arguments to avoid "whitewashing"

  • Emphasis on relevant reforms (e.g. corporate tax reform, Simplex Program, labor market flexibilization)


Derivation of suitable measures ("How?")

  • Benchmarks with other successful investment promotion agencies and cost-benefit analysis of lead generation measures

  • Revision of pitch materials to convey relevant, credible, and timely information

Result

Holistic location marketing concept, incl. suitable target sectors, messages, and measures, as well as positioning as an innovation and talent hub rather than a pure low-wage location

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