Overall, inward investment into Europe grew by 5% in 2000 to 2,243 projects. The UK saw an increase of 13%, from 508 projects in 1999 to 575, giving it a 26% share of the European market. Its nearest rival was France at just over 15% with 353 projects. Germany attracted 170 projects and Spain 148. Ireland, Belgium and the Netherlands each hosted over 100 projects.
The UK was successful in targeting high-growth, volatile sectors which increases the UK's vulnerability, but France leads the way in new manufacturing projects.
Mark Hughes, a corporate location adviser with Ernst & Young, says 'Technology sectors are fragile and much of that sector's investment has come from the United States. If the US does retrench as a result of a downturn or a halt in growth, the UK will suffer, probably more so than the rest of Europe because of its dependence on the US and these service sectors.'
To counteract this threat, Hughes suggested the UK should look to widen its investor base. 'The UK would do well to target projects from west European countries as much as it does those from North America,' he says. 'Continental development agencies have already recognised this and heavily target UK companies. The UK should do the same on the Continent.'
The report also highlighted the growth of 'clustering'--the tendency for incoming companies to congregate in the most attractive locations. Twelve European locations secured 32% all projects, a rise from 25% in 1998.
Greater London and the Ile de France attracted 182 and 99 projects, respectively, followed by Catalonia with 91 projects, Amsterdam with 57, Dublin with 47, Bavaria with 42, Berkshire with 41, Provence-Alpes Cote D'Azur with 33, Vienna with 32, Lombardy with 30, Alsace and Hessen both with 27 and Budapest with 26.
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