Centre for Entrepreneurship, SMEs, Regions and Cities


Policy Toolkit for Strengthening FDI and SME Linkages

Strengthening linkages between foreign direct investment (FDI) and small and medium-sized enterprises (SMEs) is important to boost productivity and innovation across countries and regions in the OECD and beyond. This policy toolkit offers policy advice to national and subnational governments on how to increase knowledge and technology benefits from FDI on domestic SMEs and the local economy. It presents a conceptual framework for understanding the main enabling conditions and diffusion channels of FDI-SME linkages and spillovers, and a set of diagnostic tools to assess the spillover potential. It also provides an assessment tool for policy and institutional frameworks enabling FDI-SME linkages. This toolkit benefits from insights of a pilot mapping of policy initiatives across the 27 EU Member States, which are described in the second part of the report.

Available from March 30, 2023


Executive summary
Policy toolkit2 chapters available
Conceptual framework and diagnostic tools
Tools for policy, regulatory and institutional assessment
EU country approaches to FDI-SME policy: Lessons from a policy mapping3 chapters available
Policy mapping methodology
The institutional environment and governance of FDI-SME policies
The policy mix for strengthening FDI-SME linkages and spillovers
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