Aftercare Definition.

UNCTAD considers that “the most complete definition is probably Young and Hood’s, who define Aftercare as ‘comprising all potential services offered at the company level by governments and their agencies, designed to facilitate both the successful start-up and the continuing development of a foreign affiliate in a host country or region with a view toward maximising its contribution to local economic development’

Aftercare a core function in Investment Promotion.
Source of data: UNCTAD (2007). “Aftercare: A Core Function in Investment Promotion”. Investment Advisory Series (A), No.1. New York: United Nations

"Every economy loses about 10% of its jobs annually due to retirements, business closings, product life cycles, etc. Existing businesses are best positioned to replace those jobs."

Source: International City/County Management Association
Kotval et al. (1996). (1996) Business Attraction and Retention: Local Economic Development Efforts.
International City/County Management Association, Washington, D.C

Client retention is key to business growth.

Research done by Frederick Reichheld shows that increasing customer retention rates by 5% increases profits by 25% to 95%. The same logic applies to foreign direct investment; customer retention translates into increased job creation and capital investment, which results in further spill-overs in to the local economy.

Source: Reichheld, Frederick(2001) Loyalty Rules! How todays leaders build lasting relationships, Harvard Business Press.

Transnationality can be complex

The top 100 MNEs in UNCTAD’s Transnationality Index have on average more than 500 affiliates each, across more than 50 countries. They have 7 hierarchical levels in their ownership structure (i.e. ownership links to affiliates could potentially cross 6 borders), they have about 20 holding companies owning affiliates across multiple jurisdictions, and they have almost 70 entities in offshore investment hubs.

UNCTAD (2016). “World Investment Report 2016. Investor Nationality: Policy Challenges”. New York: United Nations

We have interviewed dozens of international promotional agencies, spoken to many practitioners all over the word and have researched over 300 papers and books about the topic.

We know what makes investors get excited and what gives IPAs sleepless nights.

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