This chapter examines investment trends and policies in Poland at the subnational level and explores how policy action can, on the one hand, boost the impact of FDI on regional development and, on the other hand, increase the attractiveness of FDI in regions. The first section examines FDI trends across Polish regions. It then reviews the business ecosystem, and the SME networks, strategies, policies, and institutions related to investment and regional development. The chapter proposes policy recommendations to guide the Polish national and regional governments to boost the contribution of FDI to regional development.
Strengthening FDI and SME Linkages in Poland
Abstract
Foreign direct investment (FDI) plays a vital role not only in promoting economic growth but also in supporting social and territorial cohesion across Poland's regions. The uneven distribution of FDI across the country risks exacerbating existing disparities, leading to regions with lower employment, weaker infrastructure, and limited economic opportunities. This poses long-term risks to national cohesion, as regions left behind may face economic stagnation and growing dissatisfaction.
Poland remains a top destination for FDI in Central Europe, reflecting its strategic location, skilled workforce, and strong integration into global value chains. However, FDI inflows are highly concentrated in specific regions, a pattern also observed in other OECD countries. Beyond the quantity of investments, their quality—particularly high-value, innovation-oriented investments—determines the extent of local spillovers (see Chapter 3). Technology-driven and knowledge-intensive investments create stronger linkages with local SMEs compared to low-tech, cost-driven projects. This underscores the importance of targeting quality investments and strengthening the capacity of local SMEs to absorb the benefits of FDI. For the case of Poland, analysis in this chapter reveals:
A high concentration of FDI flows in Dolnośląskie and the Warsaw Metropolitan Area. These regions also have a greater potential for spillovers into the local economy due to the presence of advanced industries and higher levels of innovation. They have also benefited from significant foreign capital inflows and have stronger ecosystems that facilitate collaboration between foreign firms and local businesses.
In contrast, regions like Warmińsko-Mazurskie and Świętokrzyskie, which receive minimal FDI, miss out on these spillovers, limiting their capacity for growth and innovation. For example, while FDI contributes 2.63% to Poland's GDP on average, in some regions, while in some regions, it accounts for barely 0.14%, illustrating the uneven impact.
FDI flows play an important role in the overall investment portfolio of regions. In Poland, they represent on average around 15% of total regional investments (public and private), but this figure masks considerable variation across regions. For example, in the region of Dolnośląskie, FDI represents 34% of its total investment portfolio in 2021. In contrast, FDI flows in regions such as Świętokrzyskie and Lubelskie it represents less than 2.5% of total investments (public and private).
FDI also has strong multiplier effects. FDI can be a powerful driver of job creation and economic activity. Foreign firms, while representing only 12% of all enterprises in Poland, are responsible for 34% of total employment, highlighting their significant economic role. In regions like Mazowieckie, foreign firms make up 22% of all companies but account for over 42% of employment.
In this regard regional polices can play two important roles. For recipient regions of FDI flows, they can help boost the impact of FDI to their growth and development aspirations. For lagging regions with lower employment, weaker infrastructure, and limited economic opportunities, regional policies can help improve these enabling factors and help attract FDI flows. In this regard, targeted policies can also play a role to mitigate economic inequalities.
Thus, place-based polices can help ensure that spillovers from FDI are fully realised and to enhance regional attractiveness for investments.
In regions where FDI is concentrated, such as Dolnośląskie, strengthening its ecosystems and facilitating the collaboration between foreign firms and local businesses will enhance its impact on the regional economy.
In less developed regions, the key lies in building the necessary infrastructure, improving digital connectivity, and enhancing workforce capabilities to make these areas more attractive to foreign investors.
Poland currently lags behind the OECD average in terms of digital infrastructure, with only 10% fibre optic penetration compared to the OECD average of 13.2%. Enhancing digital infrastructure is critical, as it directly affects connectivity—a key enabler for investment and trade. Improved connectivity facilitates not just faster communication but also enables businesses to engage in digital markets and supply chains, making regions more competitive. This is particularly vital for integrating local SMEs into global value chains, as digital tools can overcome geographical barriers. Moreover, investments in transport and logistics infrastructure will complement digital connectivity by providing physical access to major markets, thus further increasing the attractiveness of underdeveloped regions for FDI. Another area of focus is aligning FDI with the growth needs of local SMEs. In regions like Dolnośląskie, the presence of foreign firms in high-tech sectors has created opportunities for local companies to integrate into sophisticated supply chains. However, in many less developed regions, local SMEs struggle to connect with foreign firms due to insufficient technological capabilities or a lack of skilled workers. Policies that incentivise technology transfers, encourage collaboration between foreign investors and local firms, and support SMEs in adopting digital tools are crucial for turning FDI inflows into broader economic gains (See Box 6.1) if SMEs absorption capacity is sufficient.
Several countries have implemented policies to enhance the benefits of FDI by facilitating technology transfers, fostering collaboration between foreign investors and local firms, and supporting SMEs in adopting digital tools. Below are some notable examples illustrating diverse approaches to incentivising technology transfers and collaboration between foreign investors and local firms. They provide valuable insights for Poland in shaping policies to maximise the benefits of FDI inflows and foster broader economic gains:
Ireland – Knowledge Development Box (KDB): Ireland offers a Knowledge Development Box regime, which provides lower tax rates on profits derived from patented inventions and copyrighted software resulting from R&D conducted in the country. This encourages foreign companies to establish R&D facilities locally, leading to technology transfers and spillovers to domestic firms. To support SME participation, the regime includes incentives for collaborative R&D projects involving both multinational enterprises (MNEs) and local companies (Department Finance Ireland, 2016[1]).
Singapore – Partnerships for Capability Transformation (PACT): Singapore’s PACT programme incentivises collaboration between MNEs and local SMEs by offering grants for joint projects that focus on capability development, such as technology adoption and process innovation. The programme aims to bridge the gap between foreign firms’ advanced technologies and local firms’ capabilities, enabling SMEs to become suppliers to larger firms (Enterprise Singapore, 2021[2]).
Germany – Mittelstand-Digital Programme: This initiative provides SMEs with access to digitalisation and Industry 4.0 technologies through a network of competence centres across the country. The programme offers consulting and training services on integrating digital tools and technologies. In addition, it promotes technology transfer by facilitating partnerships between SMEs, research institutions, and larger companies, including foreign investors (BMWi, 2020[3]).
South Korea – Industry-Academia Collaboration for Technology Transfer: South Korea has established numerous technology transfer offices within universities and research institutes to facilitate collaboration between industry and academia. These offices support technology transfers to local firms and offer incentives for joint R&D projects involving foreign companies. This model helps bridge the innovation gap and encourages the commercialisation of new technologies by domestic firms (KIAT, 2022[4]).
The success of FDI-driven regions like Dolnośląskie and Mazowieckie highlights the potential for growth when foreign investment is aligned with regional strengths. However, the concentration of FDI in just a few regions also exposes vulnerabilities, particularly in the face of global economic changes. Regions heavily reliant on foreign firms could face economic instability if these firms relocate or scale back their operations. A more resilient approach to regional development requires expanding FDI to underdeveloped regions and ensuring that domestic firms, particularly SMEs, have the capacity to absorb the benefits of foreign investment.
Policies should aim to attract FDI to less-developed regions by leveraging their unique assets and improving conditions for investment -through a regional development lens-. However, it may not be necessary or even desirable to prioritise large-scale FDI attraction in all areas. Some regions may benefit more from preserving their current economic and environmental character, which could involve promoting other forms of economic development, such as sustainable tourism or local entrepreneurship. In this context, migration policies and regional development strategies can play a complementary role, helping to balance demographic and economic disparities. For regions like Warmińsko-Mazurskie and Podlaskie, where conditions are favourable, Special Economic Zones (SEZs) could still be a useful tool to stimulate targeted investment, particularly in sectors aligned with local strengths.
Moreover, fostering stronger partnerships between national and regional investment agencies can ensure that FDI attraction efforts are better co-ordinated and aligned with regional development goals. This co-ordinated approach will not only increase the quantity of FDI but also enhance its quality, ensuring that investments lead to tangible improvements in local economies. Strengthening FDI-SME linkages, promoting spillovers through improved infrastructure and workforce development, and adopting place-sensitive policies are key to ensuring more balanced and sustainable economic growth. These efforts will not only enhance regional productivity but also ensure that all parts of Poland can contribute to and benefit from the country’s economic progress.
Attracting high-quality FDI. To increase FDI inflows in less-developed regions, it is important to create favourable conditions by improving infrastructure, offering targeted incentives, and implementing strategies to attract and retain talent. Recommendations to attract FDI include:
Enhance the effectiveness of the Polish Investment Zone reform: Building on the 2018 reform that extended SEZ incentives across the entire country, increase targeted support for underdeveloped regions such as Warmińsko-Mazurskie and Świętokrzyskie, where unemployment is high and FDI levels are low. Adjust incentive levels to ensure that regions with greater needs receive higher benefits. Introduce Monitoring and Evaluation (M&E) frameworks to assess the impact of incentives on regional development and make necessary adjustments to maximise effectiveness.
Attract and retain talent to support FDI growth: Implement strategies to address labour shortages and youth migration in regions like Lubelskie and Podlaskie. Tailor vocational training and upskilling initiatives to meet investor needs while also boosting local employment, reducing out-migration, and supporting long-term regional development.
Leverage Ukrainian refugee integration and eventual post-aggression reconstruction: Facilitate the integration of Ukrainian refugees into the labour market to address skill gaps, particularly in less-developed regions. Consider positioning regions near the Ukrainian border as hubs for post-agression reconstruction efforts, attracting investment in logistics and supply chain sectors.
Develop regional branding strategies co-ordinated with national investment promotion: Launch comprehensive branding campaigns for regions such as Warmińsko-Mazurskie, highlighting local success stories and quality of life improvements to reshape investor perceptions and attract FDI.
Maximise brownfield site development: Launch a national brownfield regeneration programme to unlock the potential of over 600 sites across Poland as part of a broader strategy to attract private investment (including FDI) into these areas. The programme should be carefully designed, with flexible financial and tax incentives that can be considered as part of a broader mix of tools to attract private investment. Additionally, empower local governments with the resources and regulatory support necessary to facilitate site redevelopment, ensuring that local conditions and strategic priorities are taken into account in project planning.
Improve infrastructure using blended financing models: Invest in road and rail infrastructure, including maintenance, in underdeveloped regions such as Warmińsko-Mazurskie and Podlaskie to enhance their attractiveness for investors. Financing could be achieved through EU structural funds, public-private partnerships, and municipal bonds. Poland could draw inspiration from Germany’s 'Infrastructure Acceleration Act' to streamline project approvals and encourage private sector participation (BMVI, 2023[5]).
Diffusing FDI. Maximising the benefits of existing FDI requires stronger links between foreign investors and local firms to facilitate knowledge, SME absorptive capacity and technology transfers, fostering economic and social prosperity. Recommendations to foster FDI diffusion include:
Boost productivity through FDI spillovers: Promote collaborations between domestic firms and multinationals, especially in northern Poland (e.g. Pomorskie), where foreign firms exhibit significant productivity advantages. Establish local industry-specific innovation hubs that connect SMEs, large firms, and research institutions to foster technology transfer, taking inspiration from Ireland’s 'Technology Gateways' programme (Enterprise Ireland, 2020[6]).
Strengthen triple helix partnerships (university-industry-government): Expand successful innovation models, such as those in Wrocław and Gdańsk, to other regions like Lubelskie. Encourage academic and industrial collaboration through dedicated R&D funding and incentives for joint projects.
Facilitate SME integration into global value chains: Establish export readiness programmes that support international certification, supply chain compliance, and trade finance. Create matchmaking platforms to connect domestic suppliers with foreign investors, inspired by Finland’s 'Team Finland' network, which supports internationalisation through strategic partnerships (Team Finland, 2022[7]).
Enhance digital infrastructure and literacy for SMEs: Expand broadband access and promote digital literacy in regions such as Podlaskie to that SMEs in all regions can participate in digital value chains, improving SMEs' competitiveness and fully capitalise on any partnerships with foreign investors.
6.2.1. The geography of foreign direct investment in Poland
Poland remains a top destination for greenfield investment in Central Europe, but FDI is unevenly distributed across the country. Certain regions benefit disproportionately from these inflows, while others lag behind, missing out on growth and development opportunities. This disparity highlights the importance of creating more attractive, development-ready regions to ensure FDI is more evenly distributed across Poland (Figure 6.1). In the absence of targeted policies, these disparities are likely to increase. Regions that currently receive little to no FDI may fall further behind unless proactive steps are taken to attract investment. Place-based strategies are explored in this chapter, including enhancing infrastructure, branding, and urban development (such as brownfield regeneration), which will be critical in ensuring these regions become viable options for investors. Key findings include:
FDI is a significant component of regional investments across Poland, accounting for about 15% of total regional investments. However, certain regions stand out:
Dolnośląskie saw FDI constitute 33.78% of its total regional investment in 2021. This demonstrates the potential for certain highly competitive regions outside the Warsaw capital area that represents around 20% of total, to attract substantial foreign investment.
In contrast, regions like Świętokrzyskie and Lubelskie have much lower FDI contributions, at only 2.46% and 2.41% of their total investments, respectively, highlighting the uneven distribution and impact of FDI across the country.
FDI in Poland is highly concentrated in specific regions. The Warsaw Metropolitan Area and Dolnośląskie alone accounted for nearly 40% of the country’s total FDI from 2010 to 2024, with investments reaching USD 32.774 billion and USD 29.099 billion respectively. Yet, some regions like Podkarpackie and Świętokrzyskie have received less than USD 5 billion combined over the same period.
The role of FDI in shaping regional growth is evident when looking at the FDI-to-GDP ratio. While some regions, like Warmińsko-Mazurskie, see limited impact from foreign investment, with FDI contributing just 0.14% to their GDP, others experience far greater benefits. There are strong disparities in FDI contributions to regional economies – in some regions FDI’s impact on GDP is almost negligible, while in the top region it exceeds 13% of GDP.
EU funds play a crucial role in balancing regional investment disparities in Poland. On average, they account for 15% of total regional investments, with higher percentages in less-developed areas like Lubuskie (16.74%) and Podlaskie (18.5%). Between 2021 and 2027, Polish regions will receive 155.4 billion PLN from the EU, representing 44% of all European funds allocated to Poland—the highest share in history. During the 2014-2020 period, Poland was the largest recipient of EU funds, receiving one in every four euros allocated, and is a leader in effectively utilising these funds (Ministerstwo Funduszy Poland, 2024[8]).
Source: OECD based on Financial Times fDi Markets and (Statistics Poland, 2020[9]).
Note: NBP data classify FDI by the firm’s registered headquarters, which may differ from the site of operation. Thus, regions like Mazowieckie (Warsaw) might partly reflect head-office effects.
The regional distribution of FDI in Poland not only mirrors the economic strength of regions like Warsaw and Dolnośląskie but also amplifies the disparities between these regions and less developed areas. In 2023, Dolnośląskie surpassed Warsaw (Mazowieckie), receiving USD 6.669 billion in FDI—80 times more than Podkarpackie, which received just USD 83.2 million. These regions also lead in innovation, with higher patent activity reflecting the correlation between FDI and innovation. FDI-driven innovation in regions like Warsaw and Dolnośląskie is partly due to agglomeration economies and proximity to major markets. This makes these regions highly attractive to foreign investors, while less developed regions remain underfunded and struggle to capture foreign investments. Figure 6.1 highlights key regional investment indicators, illustrating the variation in FDI inflows, EU funds, and local government investments across Poland’s voivodeships. Figure 6.2 (Panel A) shows the aggregated FDI values from 2010 to 2024, emphasising the concentration in key regions like Warszawski Stołeczny and Dolnośląskie. This aggregation reveals how certain regions have consistently outperformed others in attracting FDI over the years. Panel B highlights FDI per capita from 2010 to Q1 2024, further underscoring regional disparities even when accounting for population differences.
Source: Own elaboration, data from Statistics Poland.
FDI is distributed more unevenly across Poland’s regions than GDP, as indicated by a Gini coefficient for FDI per capita of 0.749, compared to 0.608 for GDP. The Gini coefficient measures inequality on a scale from 0 to 1, where 0 represents perfect equality (everyone has the same share) and 1 indicates maximum inequality (one region holds all the investment). The higher Gini score for FDI shows that foreign investment is significantly more concentrated in a few regions, such as Warsaw and Dolnośląskie (Figure 6.3, Panel A), while other areas receive much less. For instance, the bottom 50% of regions contribute to a smaller proportion of cumulative GDP but account for an even smaller share of total FDI, highlighting the unequal distribution of foreign investment across the country.
The gap is notably higher within some regions, where disparities in FDI are much larger than disparities in GDP. This is evident from the Lorenz curves, which show that FDI is more unevenly distributed compared to GDP (Figure 6.3, Panel B). For instance, regions such as Dolnośląskie and Warszawski Stołeczny exhibit significant disparities between their share of FDI and GDP. These figures underscore the need for targeted regional policies that promote a more balanced distribution of FDI to ensure more equitable economic development across all regions of Poland.
Note: Panel A: Lorenz curves for FDI per capita and GDP per capita highlight the greater inequality in FDI distribution compared to GDP across regions in Poland. Panel B: Gini coefficients show significant disparities in FDI per capita compared to GDP per capita.
Source: Own elaboration, data from Statistics Poland.
6.2.2. The impacts of FDI on the labour market are positive but uneven
The Warsaw Metropolitan Area, which exhibits the highest level of agglomeration in Poland, leads in both job creation and capital expenditure (capex), underscoring its position as the country’s economic and industrial hub (Figure 6.4). This is supported by robust infrastructure and proximity to major markets, which attract substantial foreign investments. However, even with significant FDI inflows, the region's economic strength is not solely dependent on foreign investment, but also benefits from diverse local economic activities. For example, Dolnośląskie is another region where foreign investments play an important role in economic development, driven by high-tech industries and a strong manufacturing base. Between 2020 and 2022, FDI stock in Dolnośląskie represented approximately 4.5% of its GDP, compared to 3.6% in Warsaw, highlighting its capacity to attract and leverage foreign capital for economic growth (Annex Table 6.A.1). Śląskie also attracts significant foreign investment due to its industrial base, which continues to bolster the region's economic development.
Less developed regions such as Podlaskie and Świętokrzyskie face significant challenges in attracting FDI, resulting in lower levels of capital investment and fewer job opportunities, which are often of lower quality. These regions have accounted for less than 1% of total FDI stock since 2003, which highlights the uneven distribution of foreign investment across the country. This limited capacity to attract foreign capital reinforces existing economic disparities and hampers efforts to achieve balanced regional development.
Note: The chart shows cumulative capital expenditure (Capex) and jobs created, aggregated from 2003 to 2022, to illustrate disparities in FDI impact across different regions.
Source: OECD based on Financial Times fDi Market and OECD Regional database.
6.2.3. Place-based strategies for addressing regional disparities in investment and economic performance
Regions with higher FDI shares relative to their GDP present both opportunities and challenges for regional development. Academic literature suggests that regions benefiting from substantial FDI inflows but with limited contributions to GDP often require strategic interventions to realise their full economic potential (Burlea‐Schiopoiu, Brostescu and Popescu, 2021[10]; EIB, 2020[11]; Akram, 2021[12]). In Poland, 62.5% of regions receive a greater share of FDI than their contribution to national GDP, indicating a concentration of investment in specific areas, such as Warszawski Stołeczny, Śląskie, Greater Poland (Wielkopolskie), Dolnośląskie, and Mazowieckie. Conversely, regions like Małopolskie, Łódzkie, and Podlaskie receive less FDI relative to their GDP contribution, highlighting the disparities in foreign investment distribution (Figure 6.5). This unevenness indicates the need for targeted policies to bridge the gap between regions.
Regions that already benefit from significant public investments, such as EU funds, can use these resources to enhance their appeal to private investors, including FDI (EIB, 2020[13]). The strategic use of public investment to improve infrastructure, support workforce development, and foster innovation can help these areas attract complementary private investments. For example, regions with existing infrastructure projects or those implementing institutional reforms may experience a multiplier effect that amplifies the impact of both public and private investments. Tools such as enhancing the effectiveness of the Polish Investment Zone reform, which expanded SEZ incentives nationwide, and offering targeted incentives for technology transfer can further boost these regions' attractiveness to foreign investors (OECD, 2024[14]). Adopting a place-based approach—tailoring policies to leverage each region's unique strengths and adjusting incentive levels to reflect local development needs—will be critical for fostering more balanced and inclusive economic growth across Poland.
Source: Own elaboration with data from Statistics Poland.
6.2.4. Entrepreneurial presence and job opportunities need to expand beyond the capital and western regions
Large regional disparities between and within Poland’s regions are not uncommon, as foreign multinational activity tends to concentrate in specific economic hubs rather than being evenly distributed across the country. In transition economies, regions with well-developed industrial and economic infrastructure, such as Mazowieckie Voivodeship (which includes Warsaw), attract the majority of foreign investment. This results in a concentration of FDI and limits the diffusion of entrepreneurial activity and job creation to less developed areas, despite government efforts to promote balanced development. The agglomeration effects seen in regions like Mazowieckie can hinder the growth of entrepreneurship and job opportunities in other parts of the country, making it crucial to implement targeted policies that extend economic benefits more widely.
The distribution of enterprises and the share of foreign employment further highlight these disparities (Figure 6.6). Regions like Dolnośląskie and Wielkopolskie show a high concentration of enterprises and foreign employment, with Dolnośląskie hosting 5 373 enterprises and a 40% foreign employment share. In contrast, less developed regions such as Warmińsko-Mazurskie and Świętokrzyskie present much lower figures, with Warmińsko-Mazurskie having 1 988 enterprises and only a 13% share of foreign employment. While it is normal for more urbanised and economically active regions to attract a higher share of foreign investment, the significant gap suggests missed opportunities for economic diversification in less developed areas. Targeted efforts to attract investment in sectors suited to local strengths could help to spread economic benefits more widely without expecting uniform levels of industry and FDI across all regions.
Source: OECD elaboration with data from Statistics Poland.
Disparities in FDI impact on productivity and innovation across Poland's regions are driven by sectoral compositions, skills availability, and R&D activity. In regions such as Warsaw and Dolnośląskie, foreign projects are predominantly in skills-intensive sectors like business services and IT, which require a highly skilled workforce. This contrasts with northwestern and central regions, where the FDI impact on productivity is negative, indicating that foreign firms in these regions are less productive than their domestic peers. The data shows that in northern regions, foreign firms are significantly more productive with a productivity differential of 2.598, while central regions show a negative differential of -0.741, reflecting a need for targeted policy interventions to attract productivity-enhancing FDI.
The wage gap between foreign and domestic firms further illustrates these regional disparities. Regions with high productivity differentials in the north and the east, exhibit significant wage gaps, suggesting that foreign firms offer higher wages due to their higher productivity and technological advancements. This trend is not consistent across all regions, as seen in the southwest and centre of the country, where the wage gap is relatively smaller despite positive productivity differentials. This indicates that factors other than productivity, such as local labour market conditions and firm-specific wage-setting policies, play a crucial role in determining wage disparities between foreign and domestic firms. Poland’s manufacturing FDI has jumped 45% in the past two years, compared to before the pandemic, partly due to US chipmaker Intel’s plans to build a new fabrication facility (on hold at the moment of this publication). Due to rising labour costs in ‘traditional’ CEE markets, such as Poland and Hungary, companies are increasingly looking at alternative locations to set up new plants.
6.3.1. Economic geography considerations should be further integrated into FDI-SME policies
Business clusters can facilitate knowledge exchange and other positive spillovers from foreign affiliates within specialised industries or among firms in close proximity. The key challenge for policymakers is aligning FDI attraction strategies, SME policies, and cluster development initiatives to create synergies that boost FDI's potential for SME productivity. Raising investor awareness about regional investment opportunities and enhancing the local business environment through policies tailored to local economic and market features can further strengthen these efforts.
A place-based approach could strengthen FDI-SME ecosystems in less developed regions
The majority of FDI-SME policies (87%) mapped for the purpose of this review apply to all Polish regions equally (Figure 6.7). Approximately 12% of Polish policies and programmes target specific regions through tailored eligibility conditions or amount of support provided to firms. Among these place-based policies, more than half are managed by PARP or the Industrial Development Agency (IDA), pointing towards a significant regional footprint and impact that these agencies have compared to other institutions. Overall, Poland exhibits a lower share of place-based policies than peer EU economies like Czechia, Lithuania, and the Slovak Republic.
Place-based policies in Poland primarily focus on supporting SMEs and promoting innovation, while investment promotion and facilitation initiatives adopt a more place-neutral approach (Figure 6.7). Financial incentives provide higher co-financing rates for investments in less developed areas, however, PAIH’s activities are mainly implemented at the national level. This is likely due to the significant responsibilities that subnational IPAs perform in Poland to attract investments and facilitate the establishment of foreign firms in their territory. While co-ordination between PAIH and these regional entities takes place on a regular basis through both formal (e.g. co-operation protocols, written agreements) and informal (e.g. ad hoc co-ordination meetings) channels, subnational IPAs report to regional authorities and PAIH does not have a formal mandate to co-ordinate subnational investment promotion and facilitation initiatives (see Chapter 6). Better co-ordination and alignment between national and subnational entities involved in investment promotion and SME development could help less developed areas of the country attract FDI in support of regional development and support meaningful linkages with local SME suppliers.
Over the past two decades, Poland’s regional development policies have become more decentralised and focused on fostering regional convergence. Prior to the 1999 public administration reform, policymaking was quite centralised. Decentralisation, supported by EU frameworks enabling of regionally diverse regulatory approaches, has allowed for more tailored approaches to local conditions and priorities (Czaplewski and Klóska, 2020[15]). Local governments now have significant autonomy in developing their strategies and plans, with indirect support from national and regional levels (Brodny and Tutak, 2022[16]). The diffusion of investment and economic opportunities from established growth centres to less developed regions is a key priority of Polish development planning. However, innovation and other development factors continue to vary across regions (Brodny and Tutak, 2022[16]). Both regional and national policies have played an important role in shaping entrepreneurship and investment in these areas (Czaplewski and Klóska, 2020[15]; Roszko-Wójtowicz and Grzelak, 2021[17]). There is room for improvement to foster greater national government involvement in supporting regional and local policy design (Brodny and Tutak, 2022[16]).
Poland’s regional policy is outlined in the National Strategy for Regional Development 2030, adopted by the Council of Ministers in 2019. Building on the Strategy for Responsible Development, it aims to promote a more even territorial development, with a particular focus on regions with lower development outcomes or potential. The Strategy promotes improved co-ordination and co-operation among public sector organisations and other actors. Ensuring coherence under the national strategy is important for addressing regional development goals, such as improvement of quality of life, strengthening local governance (see Chapter 4), promoting equality in opportunities, and realising the potential of less developed regions (Sługocki, 2023[18]). The regional development strategy is complemented by sixteen regional strategies which aim to enhance entrepreneurship in rural regions along with a focus on targeting employment (see Chapter 6). While the strategy makes references to the need to improve the investment attractiveness of less developed regions and improving conditions for entrepreneurship, it falls short of exploring the role that FDI can play in supporting territorial cohesion. Linking the measures outlined in the strategy to specific investment promotion outcomes could help further leverage FDI to address regional inequalities across Poland.
In % of mapped policy initiatives
Note: Comparator economies include Czechia, Germany, Finland, Italy, Slovak Republic, Portugal, and Lithuania.
Source: Experimental indicators based on EC/OECD Survey of Institutions and Policies enabling FDI-SME Linkages (2023).
Cluster development initiatives could focus on fostering synergies in less developed regions where business networks are weak
In addition to investment and SME policies that consider regional specificities, cluster development initiatives can contribute to strengthening FDI and SME ecosystems in specific regions and sectors. Beginning in 2008 and leveraging EU funding, Poland introduced measures for the recognition as well as technical support of cluster organisations, focusing primarily on capacity building (e.g. human capital, organisational management). A Working Group on Cluster Policy was also established to provide recommendations and co-ordinate the national cluster policy (PARP, 2022[19]; ECCP, 2022[20]). As of 2024, 19 organisations had been recognised as “Key National Clusters (KKK)” by the Ministry of Development and Technology based on an assessment of their impact on the Polish economy (e.g. in terms of employment, value added), their innovation potential and alignment with the country’s smart specialisation priorities. The KKK status allows cluster organisations to access dedicated funding schemes to support their innovation and internationalisation activities and provides member enterprises with preferential treatment when they apply for financial support and capacity building programmes.
Cluster policies are also implemented as part of regional development strategies (such as the Regional Innovation Strategy for Mazowieckie until 2030); however, these are generally disconnected from policy efforts at the national level and vary significantly across regions. In the European Cluster Collaboration Platform (ECCP), there were 82 cluster organisations registered as of 2024, with many of them being active in ecosystems related to digital industries, mobility and automotive sector as wells as renewable energy (ECCP, 2022[20]). The regions of Śląskie and Warsaw concentrate a large number of these clusters while there are less registered organisations in the rest of the country. Interestingly, certain regions with limited cluster initiatives exhibit a relatively large number of specialisation nodes, i.e. agglomeration of economic activity and employment in specific industries, pointing towards untapped potential for strengthening business networks in these industries. For instance, although the Opolskie region exhibits the highest number of sectoral agglomerations in Poland, it has no cluster organisations registered in the ECCP (2022[20]). Poland’s cluster policy could place further emphasis on ensuring a more even development of business networks across regions, particularly in less developed areas which may face challenges to network and collaborate effectively.
Beyond cluster organisations recognised under the KKK programme, financial and technical support could be further leveraged to support business networks more broadly. This could build upon recent efforts to promote collaboration in emerging value chains. For instance, the Industrial Development Agency has supported the development of business networks in the hydrogen value chains under the Hydrogen Valleys programme. Since 2021, nine such valleys have been established across Poland. In addition to supporting the development of the green economy, these hydrogen valleys aim to strengthen supply chains linking businesses, research institutions, and local administration within industrial parks. Given Poland’s early stage of cluster development, improved planning and monitoring should be emphasised to support growth (Goujard and Guérin, 2021[21]). Moreover, further aligning cluster policies with broader national and regional development strategies will be beneficial for their long-term success (Kuberska and Mackiewicz, 2022[22]).
6.3.2. Poland requires improvements in infrastructure quality, particularly in northern and eastern Poland
High-quality infrastructure is crucial for attracting and retaining FDI. Poland has a lower share of road and motorways in the territory for European standards. Similarly to trends in other European countries, most people in Poland commute by car (77% in 2016 vs. 80% in EU28) (Statistics Poland, 2020[9]). The motorway density in the country (5 km of motorway per 1 000 km2 ) is far below the European average (21 km). Municipal roads represent 59% of Poland’s road network (measured in length of km), followed by county roads (29.5%) and regional roads (6.9%). Poland has scope to enhance quality infrastructure as the country ranks among the bottom ten at the European level in terms of road quality (WEF, 2018[23]). By 2017, only 58.1% of the national roads were in a good condition, with many in poor condition with resistance issues (Statistics Poland, 2020[9]).
While most public roads have a hard surface (paved) (71.0%), a remaining share is still unpaved/soil surfaces (29%). There is a territorial disparity in terms of road quality in Poland. Municipal roads exhibit the greatest share of unpaved roads (54.8% in 2017), in comparison with counties (8% of soil roads) and regional (0.1%) roads. At the regional level, the TL2 regions in Poland with the best road conditions in the country, Śląskie (176.8 km of paved roads per 100 km2 ) and Małopolskie (170.6 km), have more than double the share of paved roads of the worst-off TL2 regions Warmińsko-mazurskie (56.4) and Zachodniopomorskie (61.2) (Statistics Poland, 2020[9]). At the TL3 level, 26 out of the 73 TL3 regions in Poland have more than 50% of their road network unsurfaced (Figure 6.8). Most of them are non-metropolitan regions located in the north of the country. Access to all types of transport infrastructure is also unequally distributed across the territory. As identified by the OECD (2018[24]), approximately 38.2% of the population has access to a major highway and railway stations within a 30-minute drive and an airport within a 60-minute drive, while 17.1% has no access to any of these transport modes within the 30-minute (or 60-minute for air) interval. The remaining share of the population has access to only one type of transport mode in the defined timespan. The voivodeships with the highest percentage of people with access to all three modes are Pomorskie and Śląskie, with about 63%. On the other hand, in three voivodeships (Dolnośląskie, Podlaskie and Warmińsko-Mazurskie), the population does not have access to any of the three transport modes within the given time limits.
Source: Government of Poland, section on Transport and Communications, (Statistics Poland, 2020[9]).
Leverage proximity to Central Europe to attract investment and establish cross-border co-operation
Enhancing market access through cross-border co-operation can significantly boost a region’s attractiveness to investors. Poland's geographic proximity to Central Europe (Table 6.1) offers significant potential for attracting foreign investment and enhancing market accessibility for SMEs and FDI. Key regions like Dolnośląskie, Lubuskie, and West Pomorskie Voivodeships are strategically located near affluent European markets, providing a unique advantage. For example, Dolnośląskie's capital, Wrocław, is only about 200 km from both Berlin and Prague, highlighting its pivotal role as a connector in Central Europe. Several key corridors enhance Poland's strategic position:
North-South Corridor: Connecting the Baltic ports with Central Europe, facilitating trade flows between Scandinavia, Germany, and Southern Europe.
East-West Corridor: Linking Poland with Ukraine and Western Europe, crucial for logistical operations and trade.
V4 Connectivity: The Visegrád Four (V4) countries—Poland, Czechia, Slovak Republic, and Hungary—benefit from enhanced transport and infrastructure networks, fostering regional trade and investment.
Source: Google maps engine.
Poland can effectively showcase its strategic locations to attract businesses aiming to leverage proximity to affluent European markets. This approach appeals to foreign investors and benefits SMEs by facilitating access to cross-border supply chains, expanding customer bases, and fostering collaborative opportunities with foreign partners. For example, the Lombardy region in Italy has successfully attracted foreign investors by emphasising its connectivity to major European markets, especially in sectors like fashion, technology, and manufacturing.
Educational and Vocational Training Programmes. Beyond market access, leveraging cross-border educational and vocational training programmes is essential to prepare the workforce with skills required by international businesses. Collaborations with educational institutions in neighbouring countries will be instrumental in developing a workforce that is both multilingual and culturally adept. Initiatives like the University of the Greater Region consortium, encompassing parts of Belgium, France, Germany, and Luxembourg, enable students and professionals to gain diverse skills and language proficiencies, making regions more attractive to multinational companies.
6.3.3. Digital infrastructure plays a key role to close regional gaps
Expanding high-speed internet access across Poland is essential not only for improving connectivity but also for enhancing business productivity and public sector efficiency. For domestic firms in Dolnośląskie and foreign enterprises in Warsaw, better digital infrastructure can strengthen competitiveness, while public administrations across the country can benefit from more efficient service delivery and digital transformation. With the current fiber optic penetration at only 10%, significantly below the OECD average (13.2%), there is a clear need for improvement (OECD, 2023[25]). Increasing internet coverage aims to bridge the geographical divide, enabling companies throughout Poland to leverage digital tools essential for modern business operations and compete on a global scale. For instance, broadband access varies significantly across regions, with Mazowieckie enjoying coverage for over 85% of households, whereas regions like Podlaskie and Warmińsko-Mazurskie lag considerably behind, with only about 55% and 60% of households covered, respectively. Such disparities highlight the need for targeted investment in these underdeveloped areas (OECD, 2023[26]). To complement this infrastructure expansion, implementing digital literacy programmes is imperative. Such programmes will ensure that workers, especially those in SMEs, are well-equipped to engage in the digital economy through practices like e-commerce and the integration of digital tools into their business models.
Fostering digital literacy to narrow technological adoption gap between SMEs and MNEs
Parallel to infrastructure enhancements, comprehensive digital literacy programmes are crucial for ensuring that workers and SMEs are well-equipped to navigate the digital landscape. These initiatives aim to prepare the workforce and businesses, particularly SMEs, to effectively utilise digital tools, thereby unlocking new opportunities in the digital transformation era. The approach to digital literacy in Poland seeks to promote inclusivity in digital participation across all regions, highlighting a relatively uniform level of internet utilisation compared to the varied digital adoption landscapes seen in other countries. Figure 6.9 indicates that while there has been significant progress in the adoption of digital technologies by SMEs between 2019 and 2023, notable gaps remain compared to larger multinational enterprises (MNEs). For instance, the use of cloud computing among SMEs increased from 14.6% in 2019 to 51.9% in 2023, showing substantial growth. However, there is still a considerable gap of 34 percentage points between SMEs and MNEs in the adoption of cloud computing. Similarly, while the adoption of AI technologies by SMEs is starting to gain traction, it remains minimal at just 2.4% in 2023, reflecting a gap of 16.6 percentage points compared to MNEs. The data also shows that basic technologies like internet access and website adoption are relatively widespread, but more advanced technologies, such as ERP/CRM systems, still have significant adoption gaps, particularly in sectors like construction and manufacturing. Some key insights from the sectorial composition:
Digital Leaders: The Information & Communication sector is at the forefront of digital technology adoption, with high usage of cloud computing, AI, and web presence, reflecting its reliance on advanced digital tools for operations and growth.
Traditional Laggards: Sectors like Transport & Storage, Construction, and Real Estate lag significantly in adopting digital technologies, particularly AI and ERP/CRM systems, indicating a need for targeted interventions to enhance their digital maturity and competitiveness.
Opportunities for Growth: Across most sectors, there is a substantial gap in AI adoption, presenting a critical opportunity for improvement. Increased focus on integrating AI and advanced digital tools could drive efficiency and innovation, particularly in manufacturing and construction.
Source: OECD Regional database, 2024.
Digitalising public administration can enhance its capacity and efficiency
The modernisation of public services through digitalisation aims to simplify administrative procedures and foster inter-municipal co-operation, enhancing process efficiency for SMEs and attracting FDI. This approach is especially pertinent at the municipal level, where challenges posed by limited human capital and bureaucratic red tape can hinder FDI attraction. Drawing inspiration from Estonia’s e-Government initiatives, Poland’s strategy involves a comprehensive digitalisation of government services to improve public sector efficiency. Estonia’s initiatives cover several fields such as e-identity, cybersecurity, interoperability services, e-Health, e-Governance, and ease of doing business, serving as a model for Poland to enhance its digital public administration services (e-estonia, 2025[27]).
There is room to further support SMEs in the digital transition particularly for non-metropolitan regions
Access to advanced digital infrastructure and the adoption of digital tools are imperative for SMEs to streamline operations and expand market reach. Emphasising digital literacy and the integration of digital technologies, such as e-commerce, is crucial for maintaining SME agility in the fast-evolving business environment (OECD, 2023[28]). The example of Singapore’s “SMEs Go Digital programme” illustrates a successful national strategy to support SME digitalisation, providing a model for Poland’s efforts in this direction. Singapore’s “SMEs Go Digital programme” is a comprehensive national strategy aiming to support small and medium-sized enterprises in embracing digital technologies. This campaign includes the provision of high-speed internet infrastructure even in rural areas, training programmes for digital skills, and subsidies for SMEs to adopt digital tools for e-commerce (IMDA, 2022[29]).
Notes: Regions are defined at NUTS II level.
Source: EUROSTAT (2023[30]), https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Digital_society_statistics_at_regional_level; Regional statistics, Regional digital economy, and society (accessed 31 March 2023) Impact on Regional Development.
6.3.4. Tailored branding strategies can enhance FDI attractiveness in eastern Poland
Location of FDI is influenced not only by objective factors but also by perception. This is particularly true for regions in the eastern part of Poland. Academic literature highlights the significance of agglomeration effects and the behavioural approach in location theory as key determinants for attracting FDI. The imitation effect suggests that once initial investments are made, they encourage subsequent investments, creating a positive feedback loop (Procher, 2009[31]; Lundan, 2016[32]). However, regions in the eastern part of Poland, such as Warmińsko-Mazurskie, Świętokrzyskie, and Lubelskie, face unique challenges, including higher unemployment rates and a perception of skill mismatches, which can create a "bad image effect" deterring potential investors (Adamczyk, Tokarski and Włodarczyk, 2009[33]) .Furthermore, these regions often lack the agglomeration benefits seen in more developed areas, such as Warsaw or regional capitals.
The regional branding in Eastern Poland has significant room for improvement. This is particularly true for regions with a traditional industrial base and migration legacy. For instance, enhancing the region’s branding could not only bolster interregional and international inward migration of qualified individuals and investors but also counteract and prevent brain drain. The strategy must, therefore, be implemented through a multifaceted approach and can also be developed by forums involving local stakeholders. Such an approach should include efforts aimed at showcasing the region’s unique benefits. Enhancing the region’s appeal could involve marketing campaigns, showcasing success stories, and improving living standards and quality of life. For example, building an attractive ecosystem for investors extends beyond the availability of land; the presence of qualified professionals plays a significant role too. These professionals seek environments that offer opportunities for development, competitive salaries, and high life satisfaction among other benefits, often grounded in the assets a community can offer. Regions compete for this qualified labour, leveraging their strengths and mitigating weaknesses to enhance their appeal as destinations for talent.
To increase the supply of qualified professionals, two key strategies should be pursued: first, making regions appealing places to live, and second, encouraging labour mobility by attracting individuals seeking better opportunities. Developing a distinct brand identity that highlights each region's unique strengths can help achieve this goal. For instance, regions in Eastern Poland could draw inspiration from Asturias, Spain, which successfully rebranded itself from a mining region to a vibrant cultural and natural destination through the 'Asturias, Natural Paradise' campaign (Regional Government Asturias, 2024[34]). This approach effectively showcased the region's stunning landscapes and cultural richness, attracting investment and talent. Similarly, Warmińsko-Mazurskie could emphasise its natural beauty and tourism potential, while Świętokrzyskie could focus on its cultural heritage and historical significance, leveraging these attributes to attract new residents and economic activity.
Highlighting local success stories can build a positive image and attract further investment. Showcasing successful businesses and foreign investments in regional media and international platforms can create a favourable perception. By promoting the high quality of life in these regions, including affordable living costs, scenic landscapes, and cultural activities. Emphasising these aspects can attract skilled professionals looking for a balanced lifestyle. This approach has been effective in regions like Asturias, which marketed its stunning landscapes and cultural richness to shift its image and attract investments (Regional Government Asturias, 2024[34]).
6.3.5. An equitable presence of Special Economic Zones (SEZs) across all Polish regions
Special Economic Zones (SEZs) were introduced in Poland in the mid-1990s as part of the economic reforms aimed at transitioning from a centrally planned economy to a market-based system. The first SEZ was established in 1995 in Mielec, a region that had been heavily industrialised under the communist regime but faced severe economic challenges following the collapse of state-owned enterprises. The main goals of SEZs were to attract FDI, create jobs, stimulate economic activity in underdeveloped regions, and facilitate the transfer of technology and managerial know-how. To achieve these objectives, SEZs offered various incentives, including tax exemptions, duty-free imports, and simplified administrative procedures, to offset the perceived risks of investing in a post-communist economy and make Poland an attractive destination for global capital.
Over the past three decades, SEZs have played a crucial role in Poland's economic transformation. Initially, they were concentrated in regions with high unemployment and structural economic problems, primarily in the eastern and southern parts of the country. As Poland's economy grew and integrated into the EU, the SEZ programme expanded to include more zones across the country, even in more developed regions, which helped attract significant investments in sectors such as manufacturing, automotive, and electronics. These investments, in turn, generated thousands of jobs and facilitated the transfer of advanced technologies and modern business practices, contributing to the modernisation of the industrial base.
However, in 2018, the SEZ policy underwent a significant reform with the introduction of the Polish Investment Zone, which aimed to modernise the existing framework and address regional disparities. Under the new approach, SEZs will remain in place until 2026, after which they will be fully replaced by the Polish Investment Zone, extending incentives across the entire country. This reform introduced a more flexible and inclusive system, offering tax breaks ranging from 10 to 15 years, depending on the region's level of development. The highest rates—up to 70% of the investment value—are available in less developed regions such as Lubelskie, Świętokrzyskie, Podlaskie, Podkarpackie, and Warmińsko-Mazurskie, with the goal of making these areas more competitive in attracting investment.
Despite these efforts, the benefits of SEZs have not been evenly distributed. Regions like Dolnośląskie and Mazowieckie, including Warsaw, have consistently attracted a large share of FDI, while less developed regions such as Warmińsko-Mazurskie and Świętokrzyskie continue to struggle. This uneven distribution has exacerbated regional disparities and raised concerns about the long-term sustainability of economic growth. To ensure that the modernisation of the SEZ policy effectively reduces these disparities, there is a need to not only offer greater incentives in lagging regions but also adapt the approach to attract investments in high-tech and innovative sectors, which require different incentives and infrastructure compared to traditional industries.
The evolving global economy necessitates a more strategic approach that leverages the unique strengths of each region. Ensuring that SEZ policies remain flexible and responsive to changing economic needs will be crucial for sustaining Poland's appeal as an investment destination while promoting balanced regional development.
Poland should refine its SEZ policy to address the challenges outlined above by strategically enhancing the Polish Investment Zone (PIZ) framework, with a particular focus on underdeveloped regions that have not fully benefited from the economic transformation. The key components of this strategy include:
Targeting incentives to underdeveloped regions: The reform has already introduced a more inclusive approach by covering the entire country under the Polish Investment Zone, with higher incentives in less developed regions like Warmińsko-Mazurskie and Świętokrzyskie. The focus now should be on maximising the impact of these incentives by further prioritising investment in sub-regions with high unemployment rates and low levels of FDI. This will help stimulate economic activity, attract investment, and create jobs, thereby reducing regional disparities (Burlea‐Schiopoiu, Brostescu and Popescu, 2021[10]).
Modernising infrastructure and incentives to attract high-added value industries: As part of the ongoing reform, it is essential to continue upgrading infrastructure and adapting incentives to align with the needs of high-tech sectors such as renewable energy, IT, and biotechnology. This modernisation effort will help Poland remain competitive in a global landscape where SEZs and investment zones increasingly focus on fostering innovation and sustainable development (EIB, 2020[11]).
Expanding sub-zones in adjacent less developed areas: To further spread the benefits of economic growth, the strategy should include creating sub-zones in adjacent less developed areas, particularly around existing high-performing regions like Mazowieckie (excluding Warsaw). By extending the benefits of the PIZ to neighbouring regions, this approach can help alleviate economic concentration and stimulate development in historically under-invested areas (Procher, 2009[31]).
Standardising procedures and fostering co-operation across investment zones: The PIZ framework should implement uniform guidelines for operational procedures, investment incentives, and performance monitoring to ensure consistency. Promoting co-operation across different regions can also help distribute resources and expertise more equitably, supporting a more balanced and co-ordinated approach to regional development (Lundan, 2016[32]).
To maximise the impact of these efforts, continued investment in improving physical and digital infrastructure, as well as training and skill development for the local workforce, will be essential. Such measures will not only enhance the attractiveness of underdeveloped regions to foreign investors but also ensure that economic benefits are more evenly distributed. Effective co-ordination between national and regional governments, coupled with continuous monitoring and evaluation, will be crucial for adjusting policies based on outcomes and promoting sustainable development across all regions of Poland.
Source: OECD elaboration with data from FDI intelligence and OECD Regional database.
6.3.6. Brownfield sites have the potential to be redeveloped into business hubs
Poland has a significant stock of brownfield sites, which present substantial opportunities for redevelopment. These brownfields, remnants of past industrial, agricultural, mining, residential, or military activities, are widespread across the country, with over 20.000 hectares identified as potential brownfield land. Regions like Upper Śląskie, Łódzkie, and the Śląskie Voivodeship are particularly affected, with Upper Śląskie alone accounting for approximately 600 brownfield sites covering nearly 10 000 hectares. Similarly, the Łódzkie Voivodeship has identified several hundred brownfield sites, particularly concentrated in areas formerly dominated by textile and industrial manufacturing.
However, the current state of these sites is hindered by inadequate legal frameworks and limited local government capabilities. Municipalities often lack the necessary instruments and authority to participate effectively in redevelopment processes, resulting in inefficient use and regeneration of these areas. The main barriers to effective brownfield revitalisation include the lack of a leading sectoral programme, insufficient legal instruments, and the absence of comprehensive co-ordination among local, regional, and national authorities. Local governments often lack the administrative bodies and expertise necessary to handle complex conversion processes, leading to fragmented infrastructure and decapitalisation of post-factory resources.
Creating a national programme dedicated to brownfield regeneration: Develop a national programme dedicated to brownfield regeneration, similar to the brownfield programme implemented by CzechInvest in Czechia. This programme should include the creation of a National Brownfield Database to identify and promote suitable sites for development projects. Additionally, the programme should support regeneration efforts through state and EU funding. Organising property tours, seminars, and conferences on brownfield redevelopment would also help attract investors and raise awareness about the potential of these sites. Similar initiatives in other countries have significantly enhanced the efficiency and success rates of brownfield redevelopment. CzechInvest's National Brownfield Regeneration Strategy has been instrumental in revitalising numerous sites across Czechia (Sroka, 2019[35]). Additionally, the successful example of Accolade's investment in Konin, Poland, where over EUR 15 million were invested to transform a former logistics centre into a modern A-class industrial park, demonstrates the potential impact of targeted brownfield redevelopment initiatives.
Strengthen Local Government Capacity and Co-ordination: Empower local governments to lead and co-ordinate brownfield redevelopment initiatives. Local authorities, supported by regional governments and national agencies, should facilitate permitting processes, provide fiscal incentives, and reduce bureaucratic barriers to attract private investment. For instance, regions like Śląskie and Łódzkie, which have a high number of brownfield sites, could benefit significantly from such streamlined processes. Enhancing the capacity of local governments to manage these projects would lead to more effective and timely redevelopment efforts. The case study of the former Aluminium Works in Skawina highlights the need for robust local governance frameworks to manage brownfield sites effectively. The lack of co-ordination and inadequate legal frameworks have been significant barriers to the successful revitalisation of this site (Sroka, 2019[35])
Source: Figure extracted from the paper ‘’Specificity of Brownfield's Revitalisation in Polish Legal Framework’’ (Sroka, 2019[35]).
6.4.1. Productivity gaps among regions and firms hinder regional balanced development
In Poland, the overall composition of firms and job distribution between domestic and foreign enterprises reveals significant contrasts. Nationally, foreign firms constitute approximately 12% of all enterprises but provide nearly 34% of total employment, with foreign firms employing 2 062 032 people out of a total of 6 105 951 jobs. Conversely, domestic firms, which account for 88% of the firms, employ about 66% of the workforce. This disparity indicates that foreign firms, while fewer in number, have a substantial impact on job creation, particularly through large enterprises. For instance, in Mazowieckie (including Warsaw metropolitan area), foreign firms make up roughly 22% of the total number of firms but contribute to over 42% of regional employment.
The composition of Poland’s business landscape, heavily influenced by the presence of large foreign enterprises, underscores the critical role of FDI in regional development. Foreign enterprises often bring in advanced technologies, better management practices, and capital, which can drive productivity and economic growth. Regions with higher foreign investment, such as Mazowieckie and Śląskie, tend to exhibit stronger economic performance and infrastructure development. However, this also suggests potential vulnerabilities, as regions heavily reliant on foreign firms may face economic instability if these firms relocate or reduce their operations.
Analysing job creation intensity reveals notable differences between domestic and foreign firms. On average, foreign firms exhibit higher job creation intensity, with approximately 246 jobs per firm, compared to 65 jobs per firm for domestic enterprises. This trend is particularly pronounced in regions like Wielkopolskie and Dolnośląskie, where foreign firms significantly outnumber domestic firms in job creation per enterprise. For example, in Wielkopolskie, foreign firms average about 389 jobs per firm, highlighting their substantial employment impact. These findings underscore the importance of attracting and retaining foreign enterprises to bolster regional employment while also supporting domestic SMEs to increase their job creation capacity.
Note: Data refers to all enterprises with the share of foreign capital, not only to foreign affiliates.
Source: Own elaboration with data from Statistics Poland.
From 2003 to 2023, the sectoral composition and capital expenditures (capex) in Poland have exhibited notable shifts. Manufacturing has experienced significant growth, while sectors like business services have seen declines. This shift highlights changing priorities and investment patterns across regions.
Manufacturing, the leading growth sector: Manufacturing has emerged as a primary growth sector, evidenced by substantial capex increases across various regions. For instance, in the Dolnośląskie region, manufacturing capex rose from EUR 388 million in 2010 to EUR 5 340 million in 2023, representing a remarkable 1 276.8% increase. Similarly, Opolskie saw manufacturing capex increase from EUR 101 million in 2010 to EUR 1 917 million in 2023, reflecting an extraordinary rise of 1 797%. This sector's growth is driven by strong industrial bases, effective policies, and successful attraction of FDI.
Business services, the declining investment: Conversely, the business services sector has experienced declining investments. In Wielkopolskie, the capex in business services dropped from EUR 2.3 million in 2010 to EUR 0.2 million in 2023, a decline of 91.3%. The Warsaw Metropolitan Area saw a decrease from EUR 455 million in sales, marketing and support in 2010 to EUR 207 million in 2023, a reduction of 54.4%. These declines highlight the shifting focus away from services towards more industrial and manufacturing activities.
Source: OECD based on Financial Times fDi Markets.
Source: OECD based on Financial Times fDi Markets.
Sustained economic growth, generated mainly by industry and services, contributed to the gradually improving labour productivity. Compared to 2011, the gross value added per employee increased in all regions, while only in 4 it was higher than the national average (i.e. Warszawski Stołeczny, Dolnośląskie, Śląskie and Pomorskie). In the regions of eastern Poland, productivity oscillated around 81% of the national average, with the lowest value in Lubelskie. Intra-regional variations indicate that the sub-regions of large urban agglomerations continued to be characterised by the highest productivity – the highest rates were found in the city of Warsaw (by 46.0% higher than the value for Poland in general), Poznań (higher by 21.0% respectively) and areas with significant business activities (e.g. Płock – higher by 72.2% respectively). The lowest rates (below 70% of the national average) were on the other hand recorded in the eastern subregions.
6.4.2. Productivity and wage disparities between foreign and domestic companies are significant
Disparities in productivity between foreign and domestic firms across Poland’s regions are pronounced, reflecting the sectoral compositions and local economic conditions. In northern regions, foreign firms show a significant productivity advantage with a differential of 2.598, indicating that these firms are substantially more productive than their domestic counterparts. Conversely, regions in central and northwestern Poland exhibit negative productivity differentials (-0.741 and -0.635, respectively), highlighting that foreign firms in these areas are less productive than domestic firms. This pattern mirrors broader trends observed in countries like Latvia and Lithuania, where certain regions such as Vidzeme & Latgale and Kaunas & Klaipeda also show higher productivity premiums for foreign firms (7.078 and 0.937, respectively). The productivity gap underscores the need for targeted regional policies to enhance the operational efficiency and technological adoption of foreign firms in less productive regions (OECD, 2022[36]).
When looking at the territorial type of the regions, labour productivity in large metropolitan areas is on average 17% higher than in other metropolitan areas and 35% higher than in non-metropolitan regions. Although productivity in all Polish regions remains well below that of comparable OECD regions, the gap is wider in non-metropolitan areas, where productivity is 32.3% below OECD levels, and even more pronounced in remote regions, with a 40.1% shortfall. Addressing the low labour productivity in non-metropolitan regions should be a national policy priority to enhance overall well-being and reduce the income gap with OECD countries. This productivity challenge is largely linked to the economic structure of non-metropolitan economies, which tend to have a limited industrial base, lower levels of technology adoption, and smaller markets. As the next section will illustrate, these factors play a significant role in shaping productivity outcomes.
The wage gap between foreign and domestic firms in Poland further underscores regional economic disparities. Northern and eastern regions show substantial wage differentials, with foreign firms offering significantly higher wages. For example, in the north of the country, the wage differential is 40%, while in the east, it is 13%. This trend is consistent with other CEE countries, where regions with higher foreign productivity premiums also see greater wage disparities. In contrast, central and southwestern regions exhibit smaller wage gaps, despite having positive productivity differentials. This suggests that local labour market conditions, firm-specific wage-setting policies, and the presence of high-skilled labour influence wage disparities. These findings align with broader European patterns, where regions with high foreign investment in high-tech and services sectors tend to have higher wage premiums.
6.4.3. Bridging the innovation gap between foreign and domestic firms is a key driver of economic development
Innovation disparities between foreign and domestic firms in Poland highlight the uneven distribution of technological advancements. In northern regions, foreign firms are significantly more innovative, with a positive differential of 2.598. This suggests that foreign firms in these regions are leading in product development and innovation. In contrast, central and northwestern regions show negative innovation differentials (-0.833 and -0.556, respectively), indicating that domestic firms are more innovative than their foreign counterparts. In regions with high levels of innovation output, local SMEs tend to have higher innovation output partly due to exposure to MNEs; yet, weaker outcomes are observed in eastern regions, as SMEs there are less integrated into MNE supply chains.
These disparities are similar to those seen in other European countries, where certain regions, such as Western Slovak Republic and Eastern Slovak Republic, show positive innovation differentials (0.126 and 4.575, respectively), while others lag behind. The innovation gap emphasises the need for policies that support R&D activities and technological adoption in lagging regions to enhance their innovation capabilities (Crescenzi et al., 2023[37]).
Note: Our study utilises in this chart the territorial divisions in the World Bank's Enterprise Surveys. This approach mirrors the aggregations used in peer countries like Latvia, Lithuania, Slovak Republic and Portugal, allowing for a meaningful comparative analysis beyond absolute figures to assess relative performance of Poland.
Source: (World Bank, 2022[38]).
6.5.1. Poland has a relatively skilled workforce across its regions.
Poland's workforce is well-qualified compared to other Central and Eastern European countries, with notable achievements in education and vocational training. Around 33% of adults aged 25-64 have attained tertiary education, which is close to the OECD average of 39% (OECD, 2021[39]).The country also performs well in international assessments like PISA, where Polish students consistently achieve high scores, particularly in mathematics and science. Additionally, Poland's vocational education system is robust, with approximately 49% of upper secondary students enrolled in vocational programmes, surpassing the EU average, and a strong base of graduates in STEM fields that support industries such as IT, manufacturing, and engineering (EUROSTAT, 2023[30]).
However, significant regional disparities persist in workforce qualifications and access to opportunities. Major urban centres like Warsaw, Cracow, and Wrocław attract a high concentration of skilled workers due to well-established universities and research institutions. In contrast, rural regions and smaller cities, particularly in eastern Poland, such as Podkarpackie and Lubelskie, struggle to attract and retain talent. These areas have lower levels of educational attainment and fewer high-skill job opportunities, resulting in "brain drain" as skilled workers migrate to more developed regions (Nowak, A, 2021[40]; Górny and Kaczmarczyk, 2018[41]).
This issue is further exacerbated by Poland's high attrition rates, with approximately 100 working-age individuals and 49 higher education students per 1 000 people leaving metropolitan regions each year (OECD, 2024[42]). This pattern reflects the difficulty in retaining talent in less-developed areas, where there is often a mismatch between the skills produced by the education system and the demands of employers. Regions like Mazowieckie and Dolnośląskie enjoy higher employment rates and more diverse job markets, while less developed regions face higher unemployment and limited high-skilled job opportunities. These skills mismatches not only hinder local economic development but also limit the ability of these regions to attract FDI.
Research indicates that regions with a higher concentration of skilled labour are more successful in attracting FDI, particularly in high-tech and knowledge-intensive sectors (Burlea‐Schiopoiu, Brostescu and Popescu, 2021[10]). This dynamic contributes to economic polarisation, with developed regions like Mazowieckie benefiting more from FDI inflows, while less developed regions lag behind. Addressing these disparities will require targeted policies to improve education and vocational training in underdeveloped regions, alongside efforts to retain talent and attract investment. Ensuring that all regions can benefit from Poland’s overall strengths in education and skills is essential for promoting more balanced and sustainable economic development.
6.5.2. Triple helix collaborations can help in the context of low innovation capacity
The innovation capacity of a region is significantly influenced by the collaboration between universities, the private sector, and government entities, a model often referred to as the Triple Helix. This collaborative approach fosters an environment conducive to R&D, leading to increased patenting activities and overall regional economic growth. This section explores successful examples of such collaborations, analyses their impact on regional innovation capacity, and provides recommendations for enhancing regional innovation in Poland.
One notable example of successful Triple Helix collaboration in Poland is the Wrocław Research Centre EIT+. This centre brings together academic institutions, industry partners, and government support to drive research in fields such as biotechnology, materials science, and nanotechnology. The centre's efforts have significantly contributed to the region's innovation capacity by facilitating numerous patents and attracting substantial private investment. The success of Wrocław Research Centre EIT+ demonstrates the potential of co-ordinated efforts in driving innovation and economic development. Similarly, the Gdańsk Science and Technology Park exemplifies the Triple Helix model's effectiveness. The park supports collaboration by providing a platform where universities, businesses, and government bodies can work together. This environment has helped incubate startups and facilitate technology transfer, leading to increased patent filings and the commercialisation of research outputs. The impact of the Gdańsk Science and Technology Park highlights the importance of creating dedicated spaces for innovation and collaboration.
Despite these successes, several challenges remain. One major issue is the lack of clear delineation of roles and responsibilities between the various entities involved, which can lead to overlapping efforts and inefficiencies. Additionally, communication channels between different levels of IPAs and other stakeholders are often underdeveloped, resulting in poor information flow and limited sharing of best practices. Addressing these challenges is crucial for maximising the potential of the Triple Helix model in Poland. Data from the Polish Patent Office indicates that regions with strong Triple Helix collaborations tend to have higher patent filings. For example, in 2023, the Dolnośląskie region, home to the Wrocław Research Centre EIT+, reported a 15% increase in patent applications compared to the national average. This data underscores the positive impact of effective collaboration on innovation outcomes. Moreover, regions with active science and technology parks, such as Gdańsk, have seen a significant uptick in startup activity and venture capital investments, further enhancing their innovation ecosystems.
Countries that have adopted integrated innovation strategies involving the Triple Helix model have reported higher levels of investor satisfaction and better regional investment distribution. This is evident in Poland, where regions like Dolnośląskie and Mazowieckie, which have effectively attracted investments through tailored strategies, show a stronger innovation performance. These findings suggest that fostering closer collaboration between universities, industry, and government can lead to substantial improvements in regional innovation capacity.
Strengthen university-industry partnerships to facilitate collaborative research projects between universities and industry partners.
Strengthening university-industry partnerships is crucial for facilitating collaborative research projects between academic institutions and industry partners in Poland, which are essential for driving regional socio-economic development (Gorzelak, 2019[43]). Establishing dedicated liaison offices within universities can effectively promote and manage these partnerships, ensuring that both academic and industry needs are addressed. The role of technology transfer in Poland’s innovation ecosystem has been well-documented, highlighting the importance of these collaborations (Jarzynowski, 2020[44]).
Providing funding incentives for joint R&D initiatives can significantly drive innovation, particularly when government programmes match private sector investments in R&D, thereby sharing risks and rewards. Poland’s Strategy for Responsible Development outlines specific measures aimed at boosting R&D investment and enhancing university-industry collaboration across the country (Polish Ministry of Science and Higher Education, 2017[45]).
Promoting Public-Private Partnerships (PPPs) focused on strategic sectors like biotechnology, information technology, and renewable energy is another crucial step. The successful implementation of PPPs in Poland’s energy sector demonstrates the potential for expanding these partnerships to other high-impact industries. Developing regional innovation hubs that bring together academic institutions, businesses, and government agencies is also vital for fostering local economic development.
Supporting the Triple Helix model involves implementing policies that facilitate knowledge exchange and resource-sharing among the three sectors. Regular forums and workshops can enhance communication and collaboration, as evidenced by the success of regional initiatives in Poland. Enhancing patent support services is also essential for fostering innovation. Establishing patent support offices within universities to assist researchers in the patent application process can streamline efforts, a crucial component of effective intellectual property management in Poland (Jasinski, 2000[46]).
Investing in R&D infrastructure is crucial for long-term innovation capacity. Increasing funding for university research labs and facilities ensures they are equipped with state-of-the-art technology, which is vital for sustaining Poland’s innovation momentum. Additionally, supporting the development of shared research infrastructure that can be used by universities and industry partners alike, and promoting the creation of interdisciplinary research centres that tackle complex societal challenges, can significantly enhance innovation (Polish Ministry of Science and Higher Education, 2017[45]).
6.5.3. Decentralisation has shaped Poland’s policy and institutional framework on investment
The policy and institutional configuration for investment promotion and regional development in Poland is complex and has evolved significantly over time. This configuration is largely shaped by the level of centralisation of economic policy and the governance mechanisms between central and subnational governments or authorities of regions, provinces, and cities. Some countries centralise investment promotion at the national level, while others, often with more decentralised systems, establish subnational investment promotion agencies (IPAs) or economic development organisations (EDOs) that operate independently of the central agency. Poland, with its mixed approach, offers a nuanced case study of decentralisation in investment promotion and regional development (OECD, 2019[47]).
Poland’s decentralisation began in the early 1990s, significantly reshaping its administrative and governance structures to enhance regional autonomy and efficiency. This transformation aimed to devolve substantial decision-making powers to subnational governments, fostering local economic development and investment promotion tailored to regional strengths and needs.
Structure of decentralisation in Poland
Poland is divided into three main administrative levels: 16 voivodeships (regions), 380 powiats (counties), and approximately 2 477 gminas (municipalities). Each level has varying degrees of self-governance:
Voivodeships: Established in 1999, replacing the 49 former voivodeships, these regions are led by a regional council elected by direct universal suffrage, with a regional executive board headed by a marshal (marszałek). They serve as the primary administrative regions, aligning with the EU’s NUTS2 classification to determine regional aid distribution. Voivodeships can establish regional development agencies (RDAs) and manage regional development strategies, including investment promotion. They range from 982 600 inhabitants in Opolskie to around 5.4 million in Mazowieckie, with significant economic disparities. For instance, Lubelskie, the poorest region, has a GDP per capita equivalent to 44% of Mazowieckie, the richest region.
Powiat: These counties are led by a county council with members elected by direct universal suffrage and an executive board led by the starosta (head of the county). There are 314 land counties and 66 city counties, which include large cities and have the same responsibilities as land counties. City counties, such as Warsaw, perform both legislative and executive functions through their councils and directly elected mayors. The average population size of counties is about 101 000 inhabitants, ranging from 19 900 in Sejneński to 1 790 700 in Warsaw.
Gminas: These municipalities, led by a municipal council and chaired by a mayor elected by direct universal suffrage, are the basic administrative units responsible for local governance. Gminas are divided into urban, rural, and mixed municipalities. The average size is about 15 500 inhabitants. Municipalities have significant autonomy, including managing local budgets and establishing local economic development bodies.
Implications of decentralisation for investment promotion and regional development
Decentralisation in Poland has several implications for investment promotion and regional development:
Enhanced local governance: Subnational governments in Poland have significant autonomy in decision making and management over a wide range of policies, including economic development. They can adopt general acts for their internal organisation, manage their budgets independently, and engage in national and international co-operation to attract investment. This autonomy is crucial for tailoring investment strategies to regional strengths and needs.
Resource allocation challenges: Despite the autonomy, subnational governments often face challenges related to resource allocation. The bulk of funding still comes from the central government, creating a potential mismatch between the powers transferred and the resources allocated. This issue, known as “unfunded mandates”, can hinder the effectiveness of decentralisation by limiting the financial capacity of local governments to implement their policies (Rodríguez-Pose and Vidal-Bover, 2022[48]). When local governments lack the financial capacity to implement their policies effectively, it can hinder regional development efforts and exacerbate regional disparities, as wealthier regions can leverage their own revenues to supplement central funds, while poorer regions struggle to meet basic needs.
Economic disparities: Decentralisation has enabled regions like Śląskie and Dolnośląskie to develop tailored investment strategies that leverage their unique strengths. However, significant economic disparities remain, with some regions benefiting more from decentralisation than others. For example, economically influential cities like Warsaw have more resources and better infrastructure to attract investment, whereas less developed regions struggle to compete.
Co-ordination and efficiency: The multi-layered governance structure can create challenges in co-ordination and efficiency. With numerous agencies involved in investment promotion, overlapping responsibilities, and dispersed administrative oversight can lead to inefficiencies. Ensuring effective co-ordination between national and subnational entities is crucial for streamlined and cohesive investment promotion strategies.
When compared to other OECD countries with similar decentralised systems, such as the Czech Republic and Slovak Republic, Poland's approach is distinguished by its extensive network of self-governing entities at the county and municipal levels. This structure allows for more locally adapted investment promotion efforts but also requires robust mechanisms for co-ordination to avoid fragmentation and inefficiencies.
1. Copenhagen Capacity serves greater Copenhagen, an urban area that covers 2 out of the 5 provinces of the Capital region of Denmark.
Defining the “right” territorial division for effective regional planning is a central but complex issue that goes beyond the scope of this report. However, it is crucial to examine the implications of Poland’s territorial divisions on policies at the intersection of investment and regional development. Subnational governments have the autonomy in decision making and management over a wide range of policies, including economic development, and the autonomy in establishing independent bodies to implement these policies. They independently manage their own income, can adopt general acts for their internal organisation and that of their administrative bodies, and can co-operate at the national and international levels – an aspect that is potentially significant for investment promotion. State control over subnational governments is limited to verifying the constitutionality and legality of their actions.
The process of decentralisation in Poland has implications on the capacity of subnational governments to deliver effectively on their economic priorities. Dispersed funding, administrative and oversight responsibilities across different agencies, and the large number of subnational governments spreads capacity thinly, creates inefficiencies and adds to the challenges of co-ordinating and monitoring policy (OECD, forthcoming). Large Polish cities are economically influential as attractive investment hubs but politically they depend on their voivodeships, except for Warsaw, which has a special administrative status. Furthermore, the bulk of budget continues to come from the central government. In general, decentralisation processes with unfunded mandates, that is, a mismatch between the powers transferred to subnational governments and the resources allocated to them, can represent a serious drag on the positive economic effects of decentralization (Rodríguez-Pose and Vidal-Bover, 2022[48]). For the benefits to materialise in Poland, it is crucial to ensure that finance adequately follows mandates.
6.5.4. Role of national and regional governments in FDI attraction and management
Poland's national government plays a significant role in shaping the overall investment climate. It establishes broad policy frameworks and regulatory environments that define the country’s attractiveness to foreign investors. Key aspects include the creation of favourable tax regimes, the provision of financial incentives, and the establishment of Special Economic Zones (SEZs) that offer benefits such as tax exemptions and grants. These policies are designed to make Poland a competitive destination for FDI, providing the stability and predictability investors seek. The national government also engages in international agreements to protect foreign investments and offers promotional activities through agencies like the Polish Investment and Trade Agency (PAIH).
Regional governments complement national efforts by tailoring strategies to local conditions. Each voivodeship can develop its own economic development plans that leverage unique regional strengths and address specific challenges. For example, regions with strong industrial bases may focus on attracting manufacturing FDI, while those with rich natural resources might target investments in tourism or agriculture. Regional authorities also play a crucial role in facilitating the establishment of SEZs within their jurisdictions, providing localised support and incentives to attract foreign enterprises.
Policy frameworks at both national and regional levels are pivotal in creating a conducive environment for FDI. These frameworks include streamlined administrative procedures, improved infrastructure, and enhanced workforce skills. The Polish government has implemented reforms to reduce bureaucracy, making it easier for foreign companies to start and operate businesses. Infrastructure development, such as improving transportation and digital connectivity, is also a priority, ensuring that regions are well-equipped to support FDI. Moreover, investment in education and vocational training programmes ensures that the local workforce meets the needs of foreign investors, thereby enhancing the overall investment climate.
Regulatory environments are crucial in maintaining investor confidence. Poland's regulatory framework aims to protect foreign investors' rights, ensuring transparency and fairness in business operations. The country adheres to international standards for corporate governance, intellectual property protection, and dispute resolution. Additionally, regional governments often provide tailored regulatory support, helping investors navigate local regulations and offering assistance in obtaining necessary permits and licenses. This dual focus on national and regional regulation ensures that Poland remains an attractive destination for FDI while addressing the specific needs of different regions.
Incentives play a significant role in attracting FDI to Poland. The national government offers a range of financial incentives, including grants, tax reliefs, and subsidies for research and development activities. These incentives are often enhanced by regional governments, which may provide additional benefits tailored to local industries and priorities. For instance, regions with a focus on high-tech industries might offer grants for innovation and technology transfer. Such incentives not only attract new investments but also encourage existing investors to expand their operations, contributing to regional economic development.
6.5.5. Improve co-ordination mechanisms between national IPAs and subnational agencies
The co-ordination between national and subnational Investment Promotion Agencies (IPAs) is a critical component for effective FDI facilitation. The national IPA, the Polish Investment and Trade Agency (PAIH), primarily promotes Poland as an investment destination globally, offering comprehensive support such as market information, location advisory, and assistance with administrative processes. Subnational IPAs focus on attracting and managing investments at the regional level, tailoring their efforts to local conditions and opportunities.
However, several issues hinder the effectiveness of co-ordination. There is often a lack of clear delineation of roles and responsibilities between national and subnational IPAs, leading to overlapping efforts and inefficiencies. This results in a fragmented approach to investment promotion, with potential investors receiving inconsistent information and support. Additionally, communication channels between different levels of IPAs are underdeveloped, which hampers the flow of information and limits the sharing of best practices. The situation is further complicated by overlapping responsibilities, different legal structures (public, private, or mixed) among IPAs, and the absence of a co-ordinated strategy. These factors collectively undermine Poland's overall attractiveness as an investment destination, as investors seek streamlined, coherent, and unified support from host countries.
Developing integrated investment strategies
National and subnational IPAs should collaboratively create integrated investment strategies that leverage regional strengths. This involves establishing a national-regional task force from PAIH and regional IPAs to conduct joint market research and develop cohesive investment promotion plans. Regular strategy meetings and joint marketing campaigns ensure a unified approach. A report from 2021 in Education from the OECD highlights that countries with integrated strategies see higher investor satisfaction and better regional investment distribution (OECD, 2021[39]). For instance, regions like Dolnośląskie and Mazowieckie have effectively attracted investments through tailored strategies (Steenbergen, 2021[49]).
Enhancing communication and information sharing
Implementing shared information systems and regular co-ordination meetings can improve communication and data sharing between national and subnational IPAs. Developing a centralised database accessible to all IPAs and scheduling quarterly co-ordination meetings will streamline information flow and align strategic initiatives. The World indicates that countries with robust inter-agency communication frameworks report a 25% increase in investment project efficiency. Such mechanisms significantly enhance investment facilitation, leading to more efficient project management and higher investor satisfaction (World Bank, 2023[50]).
Mechanisms for streamlining investment facilitation and skill development
Streamlined processes for investment facilitation and robust skill development programmes are key to maintaining investor interest and maximising FDI benefits. Poland has a number of mechanisms for inter-municipal co-ordination, such as inter-municipal agreements and inter-municipal unions. Since 2016, local authorities can also create so-called shared service centres. The national government has also established a framework for inter-municipal collaboration through the new Metropolitan Association Act in Śląskie voivodeship (Chabrot and Pyka, 2023[51]). However, inter-municipal co-operation has developed only slowly in Poland. “Territorial agreements” were introduced to strengthen partnerships among SNGs and improve co-ordination among voivodships in areas that affect several territories at once.
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Note: Total Regional Investment (2021) (USD bn): Sum of Total Local Government Investment, FDI Received (2021), and Annual Average EU Funds. FDI as % of Total Regional Investment (2021): Calculated as (FDI Received 2021 / Total Regional Investment (2021)) * 100. Divide the total EU funds for the 2021-2027 period by 7 to get the annual average.