Capital has never been more mobile, more selective, or more contested.
A crowded and uneven global marketplace
International businesses considering expansion today are not choosing between a handful of obvious destinations; they are weighing options across Europe, North America and increasingly Asia, benchmarking locations on cost, risk, speed, talent availability and long-term resilience.
UK regions are firmly part of this competition, whether they actively participate or not. Yet too often, inward investment strategies implicitly assume that credible opportunities will surface organically through national pipelines or ad-hoc enquiries. In reality, regions that are not visible, proactive and commercially compelling are rarely considered at all.
The challenge for regional leaders is therefore not simply how to attract investment, but how to compete intelligently in a global market where attention is scarce and competition is intense.
How investor behaviour has fundamentally changed
Investor decision-making has shifted markedly over the past decade, accelerated by Brexit, Covid-19 and ongoing geopolitical uncertainty. Businesses expanding internationally are now more risk-aware, more time-sensitive and more evidence-driven.
Where once longlisting exercises might have taken years, many firms now move from exploration to decision in a matter of months. They expect clarity early, and tolerance for ambiguity is low. Unclear planning frameworks, opaque governance or slow responses can remove a location from consideration almost immediately.
At the same time, investors increasingly prioritise resilience: access to skills, energy security, supply chain robustness and political stability. Regions that cannot articulate how they mitigate risk struggle to compete, regardless of cost advantages.
This places new demands on regions. Generic narratives about connectivity or quality of life are no longer sufficient. Investors expect tailored propositions that demonstrate a clear understanding of their sector, market and operational needs.
The limits of promotion-led competition
Many regions continue to approach inward investment primarily as a promotional exercise. Marketing campaigns, sector brochures and generic messaging play a role, but they are rarely decisive.
In a crowded global marketplace, being louder does not equate to being more competitive. Investors compare dozens of locations that all claim strong connectivity, skilled workforces and supportive ecosystems. Without specificity, differentiation is lost.
Worse still, over-reliance on promotion can mask underlying weaknesses. If sites are not ready, skills pipelines are uncertain or governance is fragmented, promotion simply accelerates disappointment. Regions that outperform understand that competition is not about visibility alone. It is about credibility.
Competing on factors within regional control
While regions cannot control global macroeconomic conditions, they can control how they respond. The most competitive regions focus on a small number of factors that consistently influence investor decisions:
- Speed and responsiveness: Clear points of contact, rapid answers and timely decisions signal delivery confidence.
- Clarity of proposition: Defined sector priorities supported by evidence, not aspiration.
- Certainty: Planning clarity, site readiness and transparent governance reduce perceived risk.
- Partnership quality: Investors value regions that act as partners, not just hosts.
- Track record: Evidence of previous delivery builds trust.
These are practical, operational issues rather than branding exercises. Improving them requires coordination, discipline and leadership.
The strategic value of market intelligence
Smarter competition starts with better intelligence. Regions that understand where demand is emerging, which firms are expanding and what is driving their decisions can target effort far more effectively.
This intelligence-led approach allows regions to prioritise specific markets and sub-sectors, tailoring engagement rather than spreading resources thinly. It also enables regions to anticipate investor needs rather than reacting late in the process.
Intelligence is not static. Markets shift, technologies evolve and corporate strategies change. Regions that treat inward investment as a continuous market-facing activity, rather than a reactive service, are better positioned to adapt.
Being present before the decision point
A significant proportion of investment decisions are influenced well before a formal enquiry is submitted. Relationships, perceptions and familiarity often shape longlists long in advance.
Regions with in-market presence – whether through partnerships, representation or sustained engagement – are more likely to be considered early. They are able to test propositions, refine messaging and build credibility over time.
Without this presence, regions often find themselves competing late, responding to compressed timelines with limited ability to shape outcomes. By that stage, choices may already be narrowing.
Proactive engagement is therefore not about chasing every opportunity but about positioning the region so that opportunities arise in the first place.
Competing smarter, not harder
For most UK regions, the objective is not to compete head-to-head with London or global megacities on scale. It is to compete effectively within a clearly defined space.
This requires honesty about strengths and constraints, discipline in prioritisation and confidence to say no. Regions that attempt to be all things to all investors rarely succeed.
Smarter competition is targeted, evidence-led and delivery-focused. It aligns inward investment with broader economic priorities, ensuring that effort expended internationally translates into tangible local outcomes.
A strategic question for regional leaders
If international investors do not actively know, are aware of or understand your region, how can they choose it?
In an era of mobile capital, proactive global engagement is no longer optional. Competing smarter – through intelligence, readiness and partnership – is now a core responsibility of regional economic leadership.
