Brad McDearman and Ryan Donahue - Economic development organizations often talk of competing for foreign direct investment. But arguably, the best form of FDI requires little competition at all. Instead, firms are drawn to a metro area not by low costs or incentives, but by the region’s unique specializations—including supply chains and customers, skilled workforce, trade relationships, and research institutions. For many foreign-owned firms—especially those in advanced industries, which rely on these highly specialized inputs—decisions about where to invest are often driven more by necessity than choice, because only a few regions truly offer the right combination of assets for their industry."

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