Global foreign investment activity returned to growth in 2014. The United States remains the world’s top destination for investment, with China second and India third. Ireland continues
to attract investment projects with the highest average value, while a number of smaller countries in Eastern Europe, the Middle East and Latin America receive high levels of
foreign investment relative to their size.
With global supply chains becoming increasingly complex, particularly for manufacturing activities, a country’s unique competitive advantages —particularly combined sectoral and functional capabilities — become more important. In services, companies are continuing to adapt their approach to shared-service centers, and overall investment levels in this activity are continuing to decline, with levels now at a third of the peak reached in 2006.
Moving forward, the emergence of the Internet of Things (IoT) and the changes associated with the Fourth Industrial Revolution, the smarter manufacturing movement also known
as Industry 4.0, will radically transform the global manufacturing landscape. These developments will usher in new opportunities for companies to operate complex networks
of production, distribution and sales across multiple geographic locations, leveraging the power of data to drive value creation.
This transformation of industries will have significant ramifications for labor markets and corporate skills requirements, and public-sector leaders must improve alignment between supply and demand of skills and prioritize efforts to foster educational programs that better serve the skills requirements of industries.