Incentives are part of the landscape of investment strategy. Love them or loathe them, they are often a decisive factor in corporate decision-making. Economic development agencies have at their disposal a mix of grants and subsidies, preferential borrowings and credit, tax rebates and other nonfinancial incentives which might include access to clusters of supply chain partners.
When it comes to financial incentives, the US in recent years has led the way offering a broad range of incentives for both foreign and domestic companies, with some states having more than 30 programmes in play at once. For example, in 2018, the Indiana Economic Development for a Growing Economy (EDGE) handed out 224 financial packages to expanding companies, while the European Regional Development Fund recorded 151 deals. This large contrast between a state and continent is representative of how far Europe has lagged behind the US in the past.
Over the past year, Wavteq has seen an increase in European incentives, partly due to better transparency by European countries. Given this recorded increase and a recognized interest from clients, we have released our Incentives Briefing: Uncovering Investment Incentive Trends & Insights from EU-27. The briefing provides Wavteq's view on what is happening in Europe from an incentives point of view, and what the future could look like.
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Wavteq is a global strategy consulting firm advising governments & public sector institutions in building resilient economies by offering creative solutions around new job creation & accelerating capital investment. We've been a strategic thought leader in economic development for over a decade, bringing unrivalled capabilities, tools, technologies, and talent to every client partnership. Over 1,000 governments, multilateral organizations, professional services firms and academic institutions subscribe to Wavteq-developed products. Wavteq's consulting team has helped economic development organizations secure over $50 billion in greenfield investment projects in the last ten years. The firm has a global footprint across 12 countries.