Policy Toolkit for Strengthening FDI and SME Linkages
Strengthening linkages between foreign direct investment (FDI) and small and medium-sized
enterprises (SMEs) is important to boost productivity and innovation across countries
and regions in the OECD and beyond. This policy toolkit offers policy advice to national
and subnational governments on how to increase knowledge and technology benefits from
FDI on domestic SMEs and the local economy. It presents a conceptual framework for
understanding the main enabling conditions and diffusion channels of FDI-SME linkages
and spillovers, and a set of diagnostic tools to assess the spillover potential. It
also provides an assessment tool for policy and institutional frameworks enabling
FDI-SME linkages. This toolkit benefits from insights of a pilot mapping of policy
initiatives across the 27 EU Member States, which are described in the second part
of the report.