Estonia returns to investment promotion summit

This year's investment promotion summit saw Estonia reclaim the top spot in a ranking of 31 investment promotion agencies (IPAs) from Central and Eastern Europe, the Balkans, Baltics, Caucasus, and Central Asia. Estonia, a frequent winner in the ranking's early years, now leads Latvia, which dropped to joint third place, behind Moldova.

The ranking, which uses a new methodology emphasizing reinvention, evaluates IPAs based on seven categories: foresight, identity, choice, reallocation, adaptability, execution momentum, and reinvention culture. Moldova claimed second place, surprising some but likely due to its focus on Ukraine's reconstruction and its relatively low wages.

Romania scored the lowest, just 30.88 percent. The new ranking highlights the importance of adopting new ways of thinking in investment promotion, moving away from traditional methods such as location, talent, cost, and incentives. These tools, while beneficial, do little to differentiate countries from one another. The ranking suggests that countries asking and answering the question, "What would investors miss most if my country disappeared from the map?" are more likely to succeed.

Estonia's success is attributed to its minimal bureaucracy, digital state, and quick implementation of changes to boost investment.