Bad news is that UK has lost top position for FDI to France- meant to be the noncompetitive face of the EU.
Good news is that UK outstrips the combination of Germany and France for Digital FDI. And digital acceleration and transformation is the cornerstone of innovation, competitive advantage and growth.
The sting in the tail however is that the investment is concentrated in London, The South East and then certain city/urban areas.
The areas of the UK that lost out to globalisation might loose out again.
"It would be nice to think, too, that the crisis has ushered in a new era for Wakefield, Wigan and West Bromwich. We have, however, to be realistic. Levelling up was always a huge challenge. Now it is even more of an uphill task".
David Smith EconomicsUK.com May 31st 2020
UK lost top spot in 2019, for the first time since 1997. And, to add insult to injury for those who have little time for the entente cordiale, it was lost to France. Our near neighbour had 1,197 projects, the UK 1,109. The good news, for those looking to the future, is that this country appears to be establishing a new comparative advantage in digital technology. Last year the UK secured 30% of all European FDI in digital technology, with 432 projects, which was more than France and Germany combined. Since 2013, digital technology has accounted for the biggest number of UK inward investment projects. Digital technology is much less reliant on single market membership, or existing patterns of trade. The UK suffers from a lack of competitiveness in many sectors, but not in digital technology
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