Competition For Investment Research Articles

Is Investment Contributing to Competitiveness in Nautical Tourism in the Atlantic Area?

The blue economy contributes significantly to the creation of the Atlantic Area’s identity. In addition, the search for outdoor experiences after the COVID-19 lockdown suspensions has renewed the popularity of nautical tourism in this area and in the world. Despite the negative effects of the economic crisis on tourism, evidence suggests that some tourist destinations in the Atlantic area are resilient. Thus, whereas some branches of the blue economy face considerable challenges to increasing competitiveness, others offer opportunities for economic growth and employment. In this context, investment is necessary to lay the foundations for the sustainable development of nautical tourism. However, regarding the role of investment in productivity and competitiveness in the context of crisis, there is no consensus among academics. Thus, we investigate whether the investment contributed to competitiveness in nautical tourism in the Atlantic Area in 2016–2020. We collected data from ORBIS for 29 nautical-tourism companies and performed a quantitative and qualitative narrative analysis of competitiveness indicators, enabling comparisons pre and during crisis. The results highlight the multiplicity of ways in which crisis impacts nautical-tourism firms. The research fills a gap in the literature by investigating the dynamic capabilities of nautical-tourism SMEs in periods of recession, with a special focus on restructuring and competitiveness strategies. Some recommendations are outlined to promote the efficiency of resources and stimulate the competitiveness of companies to allow the regional development of nautical tourism in the territory of the Atlantic area.

Concealed productions of structural violence: a cultural flagship in post-authoritarian Spain

ABSTRACT This article contributes to examinations of structural violence and flagship architectural projects. Neoliberal urbanism contributes to European urban stakeholders’ efforts to increasingly become entrepreneurial forces, generating intense competition investment and tourism. There is a multitude of marketing initiatives, but the inclusion of cultural flagship projects is notably prevalent, particularly after the exemplary success of the Guggenheim Museum that served as a model for the ‘Cidade da Cultura’ (CdC) cultural museum in the Spanish city, Santiago de Compostela. While the claim to promote culture and tourism is a common assertion, this project is highly political in nature. This article demonstrates that the allure of progress via the production of a ‘modern’ urban cultural icon obscured the structural violence of the project. Indeed, flagship architectural projects can be employed as a mechanism of exclusion. I argue that the CdC is best understood by attending to how the project concealed the production of political structural violence (i.e., economic and autocratic governance). In this case, public was excluded at the expense of an elite few CdC stakeholders’ funding priorities to attempt to forge a project for their own benefit.

Article: GloBE Rules and Tax Competition

This article studies foreseeable effects that a relatively comprehensive implementation of the Pillar 2 GloBE international effective minimum tax would have on international tax competition for investment. The discussion focuses on the perspective of countries that seek to attract foreign direct investment through their tax system. The paper shows that there was disagreement within the G20/OECD Inclusive Framework (IF) about the objective to curb international tax competition through a minimum tax. The reservations of some member countries have manifested themselves in the compromise design of the internationally agreed GloBE regime: With the carve-out for substance-based routine profits (the so-called SBIE), the IF abandoned the idea of setting a general floor for business tax competition at the agreed minimum rate. Instead, the SBIE establishes an effective 15 % floor only for the taxation of excess profits. Due to the additional possibility for source countries to collect any eventual minimum tax themselves through a qualified domestic minimum top-up tax (QDMTT), tax competition could theoretically continue unabated above this floor, implying the successive substitution of traditional business taxation with a domestic minimum tax mimicking the international GloBE top-up tax. Taking into account fiscal, legal, and political constraints, however, such an extreme scenario is unlikely to materialize. A broad GloBE implementation should therefore reduce incentives to use effective tax rate below 15 % (on overall profit) in order to attract high-margin investment. This notwithstanding, certain features of the GloBE Model Rules imply that some forms of business tax competition will continue as before or even gain in relative attractiveness. Due to its – albeit moderate – mitigating effects on business tax competition, GloBE might moreover lead to intensified competition for investment through other channels. GloBE, minimum tax, Pillar 2, competition.

Competitive investments between basic R&D and applied R&D with information spillovers

The impacts of information spillovers on Research and Development (R&D) choices are investigated in a two-stage Cournot duopoly where two firms simultaneously and non-cooperatively determine their levels of applied R&D aiming at the creation of a new process and basic R&D devoted to the improvement of absorptive capacity. Through a comparative static analysis, it is demonstrated that as more information associated with applied R&D spills out, each firm will shift its R&D expenditure from applied R&D to basic R&D if the efficiency of basic R&D is relatively low. Similarly, a relatively higher spillover degree of basic R&D induces each firm to invest less in basic R&D and more in applied R&D. However, in some cases both firms will reduce their efforts in the two types of R&D as more R&D know-how leaks out. Furthermore, the increase in applied R&D spillovers always contributes to the two firms and the society. Assuming that the efficiency of basic R&D is sufficiently low, as basic R&D becomes more appropriable, firms’ profits and social welfare will be decreased (improved), provided that the spillover level of basic R&D is relatively small (large).

The impact of the COVID-19 pandemic on foreign investment and investment arbitration: from energy transition disrupted to the path forward to a greener future

Abstract Foreign investment in the energy sector is complex during the best of times. The challenges posed by the COVID-19 pandemic (and its intertwined economic crises) increased competition for foreign investment and strengthened the perennial quest for climate justice. The pandemic added complexity to both domestic and international spheres of governance, which led to calls for a suspension or even a cancellation of arbitration claims involving foreign investments. As developing and developed countries compete for financial resources to transition to a carbon-neutral society, such a suspension or cancellation is of academic and practical interest. Accordingly, this article discusses the impact of the pandemic on foreign investment in the energy sector, focusing on investment claims. It assesses competing views involving the proposed revisions (namely, suspensions and cancellations) and their consequences based on a law and economics perspective. This article also examines how foreign investments that align with the United Nations Sustainable Development Goals may foster the transition to a greener future. Ultimately, this article offers relevant insights that are likely to be applicable to critical future disruptions, whether they occur due to global economic crises or climate-related emergencies.

Energy subsidies and carbon emission efficiency in Chinese regions: the role of the FDI competition in local governments

ABSTRACT Based on the Data Envelopment Analysis, this paper examines the economic effects of energy subsidies on carbon emission efficiency in the Chinese regions from 2003 to 2018. The special roles are given to fiscal decentralization and foreign direct investment competition of local governments. It is observed that an increase in energy subsidies per capita negatively affects carbon emission efficiency. The green-growth-oriented local energy subsidies, targeted at clean energy and low-carbon industries, positively affect carbon emission efficiency. Therefore, local economies can balance economic growth and carbon emission reduction requirements. Given these results, policymakers should change the original performance evaluation mechanism with economic growth as the goal and promote local governments to implement green growth and low-carbon economic development policies.

The impact of fiscal decentralization on environmental pollution and the transmission mechanism based on promotion incentive perspective.

At present, China's economy is transforming from rapid development to high-quality development, and environmental pollution stands out as an urgent need to be addressed. Fiscal decentralization is considered to confer economic incentives on local governments to obtain the right to gain and spend in economic growth. However, at the same time, political incentives are given to local officials under the promotion mechanism based on gross domestic product (GDP) assessment, and these two incentives become key to the environmental performance of the jurisdictions. Therefore, this paper incorporates fiscal decentralization, promotion incentives, and environmental pollution into a unified framework and theoretically analyzes the effects of fiscal decentralization, promotion incentives on environmental pollution, and the intrinsic mechanism of action. Using panel data of 30 Chinese provinces from 2002 to 2018, we examine that fiscal decentralization significantly promotes environmental pollution, and this performance is more obvious in economically underdeveloped regions. In terms of its mechanism of action, fiscal decentralization affects environmental pollution by increasing the demand for foreign direct investment, inhibiting technological progress, and enhancing environmental regulation, while foreign direct investment and technological progress significantly inhibit environmental pollution, but environmental regulation does not present a role of pollution control. Further study finds that under the consideration of "GDP-based promotion incentives," local officials will generate "competition for investment," relax environmental standards for FDI, and generate "competition for growth", which will inhibit technological progress and incomplete enforcement of environmental regulations, thus exacerbating local environmental pollution. On this basis, this paper proposes to further deepen the fiscal system reform, promote the optimization of local government competition system, and effectively restrain the vicious competition behavior of local officials under the fiscal decentralization system, so as to provide relevant insights for realizing China's economic transformation as well as high-quality economic development.

The Business Climate and the Commodification of Place: The Making of a Market for Location

Interlocality competition is a staple concern of modern economic geography. Yet, beyond the abstract bases of this competition in the very nature of capitalism, the question of how such interlocality competition arose in the post-1945 period remains underexplored. In this article we draw on the sociology of markets and metrics literature to examine the socially constructed nature of the “location market” that underpins interlocality competition for investment. The empirical focus of the article is on one company—Fantus—and one idea—the local business climate. The Fantus company pioneered the practice of corporate site selection and location consulting and played a key role in constructing a market for location in the United States. Drawing on sources that include the archive of the company’s files, we describe the work of this company and its role in assembling the local “business climate” index. The story provides a glimpse of the politicized and contested origins of metrics as market-making techniques, their derivatives, and their unintended, unanticipated, and at times downright perverse effects. The business climate measure served to change perceptions of the value of places, rendering them as interchangeable locations. It is a compelling example of the broader process by which the representation of places in the language of numbers exacerbates the competition for capital, obscuring the politicized and asymmetrical nature of that competition.

Using Mixed-Method Technique to Investigate Role of Local Governments in City Branding

Local governments provide a range of local services, preserve the life and liberty of residents, creating space for democratic participation and civic dialogue, supporting market-led and environmentally sustainable development. City branding supplies the principles for the city developing policy to sustain the local development. In other words, city branding means being powerful to face the increasing wild competition for resources, investment, and tourism facilities, both for addressing crucial social issues and cultural variation. The purpose of this study is (i) to investigate the role of local governments in city branding, (ii) to determine city branding contribution to local economic development (LED). Although there are plenty place branding techniques in the world, the success of the city branding strategy cannot be performed without the participation of a local government.
 In addition, the current study selects the city of Durban in the Province of KwaZulu-Natal, South Africa as the context of the study and a local government to focus on. The problem is that the city of Durban has not been successful at making the city competitive enough to attract the needed investments. The city officials have also not been effectively marketing the city to the world to make known of its inherent potentials. This study seeks to overcome this issue by developing city branding strategies. The city management need to take proactive action in implementing them to effectively market the city to the world.
 To achieve objectives, the study adopts the form of a mixed-methods approach, using quantitative (survey questionnaire) and qualitative (in-depth interview) as methods and instruments for data collection. The study follows a sequential design starting with quantitative and followed by qualitative data collection. Since the study employs both quantitative and qualitative methods, both purposive sampling (for qualitative phase) and simple random sampling (for quantitative phase) techniques will be selected. The researcher selected participants from Durban municipality. The study’s sample size constitutes 350 participants (N=320 was surveyed) and (30 were interviewed). The researcher analysed the data collected with questionnaires through descriptive and inferential statistics and data collected using in-depth interviews through content analysis.

Corporate Performance, Market-Industry Competition and Enterprise Environmental-Protection Investment

Worldwide, many countries regard green as a keyword related to development, and investments into environmental protection are an important way for enterprises to achieve green development. Therefore, clarifying which factors influence enterprises to invest into environmental protection is very important. Starting from micro-enterprises and using the data from companies listed in China’s A-share manufacturing industry from 2008 to 2019, in this study, we empirically analyze the relationship between corporate performance (CP) and the scale of investments by enterprises into environmental protection (EI) and analyze the moderating effect of industry competition on the relationship between CP and EI. The result shows that (1) a positive correlation can be found between CP and EI; (2) fierce industry competition can increase the positive impact of CP on EI; and (3) compared with industries with non-heavy pollution, fierce industrial competition increases the positive impact of CP on EI in industries with heavy pollution. The research results show that performance is a key factor influencing enterprises’ decisions about investments into environmental protection, and industry competition can stimulate enterprises to invest into environmental protection. This study explores the internal and external factors influencing an organization to promote active behaviors of investing into environmental protection, provides a reference for enterprises to explore “win–win” paths, and provides a certain theoretical basis for the government to improve relevant regulations.

Bilateral value-added service investment in platform competition with cross-side network effects under multihoming

To expand users’ scale and enhance competitiveness, many third-party platforms have focused on investing in value-added service (VAS). This study focuses on bilateral VAS and pricing decisions of two competing platforms with different investment costs. Platforms’ bilateral users, including manufacturers and suppliers, can access one or two platforms (i.e., bilateral users can be multihomed). By developing a Hotelling model, we study the differences in VAS investment and pricing between two platforms considering cross-side network effects (CNEs) and propose the strategies of bilateral VAS and pricing for platforms. Then, compared to the situation of no VAS, we analyze the influence of VAS investment on platform pricing. The results show that unlike the platform with high marginal investing cost, the platform with low marginal investing cost offers a higher VAS level to its bilateral users, but may charge them less. Under some conditions, the platform with low marginal investing cost should provide a high level of VAS for manufacturers but charge them a low fee, and simultaneously provide a low level of VAS for suppliers but charge them a high fee. While the platform with high marginal investing cost should provide a high level of VAS with subsidies for manufacturers but a low level of VAS with charges for suppliers. Moreover, we also find that regardless of platforms’ marginal investing costs being high or low, they always charge suppliers more after investing in VAS, but may charge manufacturers less, or subsidize them more.

ENERGY DERIVATIVES- AN ANALYSIS OF THE TURKISH ELECTRICITY MARKET

With the new risk perception in financial markets, the use of derivative instruments has increased. In particular, energy derivatives, which are used to reduce the risks associated with energy price fluctuations, have been widely used worldwide and recently in Turkey. The objective of this paper is to contribute to the limited literature by analyzing the evolution of base load futures contracts traded in the Turkish electricity market. Based on a comprehensive literature review, a SWOT analysis is conducted to identify the strengths, weaknesses, opportunities and threats of these financial instruments. It is concluded that, especially after the radical restructuring of the electricity market, a transparent, reliable and competitive investment environment has been created and electricity futures contracts are now one of the most important contracts that help market participants to manage or hedge electricity price risks.

Is It Twilight for Deepwater US Gulf Megaprojects?

In early February, TotalEnergies revealed its plans to withdraw from the North Platte deepwater development in the US Gulf of Mexico (GOM). Given the historically inviting and economically competitive US offshore when it comes to oil and gas development, word of the French producer’s decision struck an ominous chord. Things have changed for operators looking to forward multibillion-dollar megaprojects in the GOM. Today, there may be more headwinds than ever before facing future large-scale developments—an unfavorable political regime, competition for investment not only with other oil projects around the world but also with renewable projects, and supply chain woes that have made the waits for long-lead-time items even longer, along with the simple fact that the region has gone several years with very few major discoveries. The backlog of potential GOM megaprojects is stuck in the single digits, and likely is less than five. Shell has its Leopard find and Blacktip complex. Equinor has Monument. After that, things get gray. The number of Lower Tertiary wells—where any elephant fields remaining would likely be found—has decreased steadily over the past decade (Fig. 1). According to the Bureau of Ocean Energy Management (BOEM), six Lower Tertiary exploration wells each were drilled in both 2013 and 2014. That number dipped to four in 2015 and 2016. Only one was tallied each year between 2018 and 2020. Of the 25 Lower Tertiary wildcats drilled between 2013 and 2020, BOEM counts seven as oil discoveries, nine as noncommercial, and nine as dry holes. The slide in activity could be related to soft oil prices or it could be that the region, which has been actively explored since around 2000, has matured. TotalEnergies’ Chief Patrick Pouyanne told investors that it was not US policy that made the company shift gears, but rather the fundamentals of the company’s portfolio. “It’s a purely intrinsic decision linked to the project and linked also to our capital allocation,” he said. “It’s honestly at the limit—at the high limit of the range we gave ourselves. North Platte, because of its size, in fact, we knew it. It’s not a giant field. It’s really on the high side of these metrics. So that’s one point. And second point, we prefer to invest in Sepia and Atapu in Brazil rather than in North Platte.” North Platte straddles four blocks in the Garden Banks area of the US GOM in about 1300 m of water. The field development plan was based on eight, 20,000-psi subsea wells and two subsea drilling bases connected via two production loops to a newbuild, lightweight floating production unit (FPU). Oil production at plateau level was expected to average 75,000 B/D with associated natural gas. “TotalEnergies just signed up with Brazil, which has projects more along the lines of what they’re looking for—200,000 B/D-type projects with future upside,” explained Justin Rostant, principal analyst with Wood Mackenzie. “Similarly, in Uganda, they just signed on the Lake Albert (Tilenga) project, which includes multiple fields they’re going to jointly develop—again another 200,000 or 250,000 B/D project. The Uganda project also includes investments in a 60,000 B/D refinery, a 1440-km export pipeline, and potentially a renewable power project. So, truly it’s an integrated megaproject. They also just had a massive discovery in Namibia. Again, a multibillion-barrel discovery that will turn into another megaproject. Those are the kind of projects they’ve been looking at and North Platte just could not compete.”

Market Competition, Infrastructure Sharing, and Network Investment in China’s Mobile Telecommunications Industry

The relationship between market competition and network investment in the mobile telecommunications industry has always been one of the focuses for scholars and regulatory agencies. The conclusions of previous studies on this topic remain ambiguous. Infrastructure sharing has become a noticeable trend in the global mobile telecommunications industry, but its impact on operators’ investment and innovation behaviors is controversial. This paper uses fixed effects and dynamic panel data models to empirically examine the relationship among the market competition, infrastructure sharing, and network investment in China’s mobile telecommunications industry. The results show that market competition has a significant positive impact on the total industry network investment, but the interaction of market competition and infrastructure sharing has undermined network investment, which indicates that the competitive strategy of rational operators will shift from facility-based competition to service-based competition when both deep infrastructure sharing and fierce market competition appear at the same time, and this is likely to cause insufficient incentives for investment in advanced technology. This paper suggests that China’s regulators should improve the market structure, enhance market competitiveness continuously, and support infrastructure sharing, but at the same time they should exercise caution when conducting in-depth infrastructure sharing. In addition, they should accelerate the development of 5G vertical industry applications to expand the market space for industry development.

International Rivalry in FDI Incentives and Strategic Responses

Purpose As globalization continues to expand since the 1990s, competition for foreign direct investment (FDI) has intensified all over the world. This paper tried to explore strategic relationships among developing countries in a race to attract multinational corporations (MNCs). Design/Methodology/Approach This study established a game-theoretical model with three stages, where governments of potential host countries set their policies to attract MNCs and impose a tariff on imported products. In addition, MNCs make their own locational decision after realizing policy sets of incentives and tariffs. Findings This paper found that an MNC will make a locational decision considering market size, cost advantages, FDI incentives, and tariff burdens. This paper also found that countries with a smaller market size and a weaker cost advantage are likely to raise FDI incentives to attract MNCs. In addition, the host country will raise the FDI subsidy when a non-host rival country sets a higher tariff on exports of the host country. We also found that the non-host country, which lost the race of attracting the MNC, will raise its optimal tariff rate if it has a bigger market, and the host country has a weaker cost advantage. In addition, the non-host country will raise the optimal tariff rate when the host country provides a greater subsidy to the MNC. Research Implications One of critical findings in this study is that the host country has no first-mover advantage in a race of FDI subsidies because it needs to provide a greater subsidy to attract the MNC when it moves first by providing FDI subsidies, and then the non-host country will react by imposing a tariff against the exports of the host country to the market of the non-host country.

Management of the Russian Interregional Investment Distribution Using the Autonomous Expenditure Multiplier Model

An effective and competitive investment policy requires improvements to the existing tools. The ongoing COVID-19 crisis requires understanding as to how the recovery processes should be implemented. This study aims to develop a model for determining the autonomous expenditure multiplier (AEM) values, considering the investment accelerator action. The scientific novelty consists of proving that the AEM is not only an effects enhancer of the government and private investment, but also a tool to specify on the regional industrial map of Russia where investment projects will allow significant economic growth. The work’s practical significance consists of determining the possibility of applying the AEM as a tool to improve investment efficiency. The key research method was paired linear regression analysis. Based on the developed model, the AEM values for the economies of the five Central Federal District regions are calculated. Additionally, authors provide an explanation on how AEM values correlate to regional economic specialization. For example, atypically low AEM values for Moscow can be explained by high daily workforce movement among Moscow and the Moscow region. The information support difficulties of the proposed model are defined, and the directions to overcome them are proposed. Empirical results show significant differences in the AEM values of the researched regions, and that the AEM as a management tool for interregional investment distribution will help to invest the limited resources of both the state and private businesses more effectively. Additionally, authors establish that the achieved results fall in line with real macroeconomic situations within the regions, which proves that the proposed model reflects real world processes. Primary beneficiaries and end users of the study are government agencies, state-owned corporations, and members of broader scientific community.

НАПРАВЛЕНИЯ ЦИФРОВИЗАЦИИ ФИНАНСОВОГО ОБЕСПЕЧЕНИЯ АПК В КОНТЕКСТЕ РАЗВИТИЯ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА СЕЛЬСКИХ ТЕРРИТОРИЙ РФ

the article presents the growth dynamics of the gross domestic product of the Rus-sian Federation, the branches of the agro-industrial complex of the Russian Federa-tion for the period 2016-2020, a comparative analysis of growth rates is carried out. The outstripping pace of development of the agro-industrial complex has been es-tablished in comparison with other sectors of the Russian economy. The directions for adjusting the legal documents of the Russian Federation regulating the digitali-zation of agricultural activities are substantiated in the context of the development of human capital in rural areas, strengthening the investment attractiveness and competitiveness of the agro-industrial complex. The results of the study can be used by state authorities of the Russian Federation and subjects of the Russian Fed-eration in the preparation of programs for sectoral and territorial development.

Emergence of size-structured dominance hierarchies through size-dependent feedback.

Size-based dominance hierarchies influence fitness, group size and population dynamics and link dominance structure to evolutionary and ecological outcomes. While larger individuals often gain dominance, social status may influence growth and size in return, resulting in feedbacks among status, growth and size. Here, we present two models evaluating how these feedbacks influence the emergence of size structure in a dominance hierarchy. In the first, size influences competition for food and investment in suppressing growth of groupmates. Stable size differences emerged when suppression was greatest for similarly sized individuals and size had little effect on competition for food. The model predicted size divergence when size strongly affected competition for food. In the second model, we used a dynamic game to solve for optimal investment in growth suppression as a function of size structure. Investment in growth suppression was favoured only when dominants and subordinates were similar in size, generating size ratios different than those expected by chance. Variation in the feedbacks among growth, size and status can explain variation in emergent size structure of dominance hierarchies and its consequences for conflict within groups.This article is part of the theme issue ‘The centennial of the pecking order: current state and future prospects for the study of dominance hierarchies’.

The anti‐tax‐avoidance directive: An initiative to successfully curb profit shifting?

AbstractOn July 2016 the Economic and Financial Council of the European Union adopted the Anti‐Tax‐Avoidance Directive (ATAD). The proposed controlled‐foreign‐company (CFC) rule in the ATAD requires a minimum tax rate in the host country of a multinational's controlled‐foreign subsidiary to avoid the reattribution of the subsidiary's income to the country of its parent company. The Directive allows member states to remain free to set the CFC threshold autonomously by laying down a minimum standard. Member states can thus either opt for a loose CFC rule by setting the minimum required control threshold (i.e., 50% of the country's own corporate income tax rate) or impose a tight CFC rule by applying a higher threshold. Against this background, the present paper analyses the effect of CFC rules on tax competition for foreign direct investments. It appears that, although CFC rules are effective in curbing offshore profit shifting, they can induce nonhavens to compete aggressively for mobile capital. In this context, CFC rules can exacerbate capital outflows from the large to the small country to a larger extent than in standard models of tax competition. Moreover, the paper highlights that governments choose between two extreme options when deciding on their CFC rule. Either they opt for the lowest or the highest possible control threshold.

ІНВЕСТИЦІЙНА ДІЯЛЬНІСТЬ ПРОМИСЛОВОГО ПІДПРИЄМСТВА ЯК ЕЛЕМЕНТ СТРАТЕГІЧНОЇ СТАБІЛЬНОСТІ

Today, our country is in difficult financial conditions, we can call it crisis, which provoked by coronavirus and hostilities. Industry enterprises are the driving force of the economy and constitutes a large percentage of it, providing stability and high profits for the state budget, which is necessary to the national economy now. Therefore, in order to ensure the stable, uninterrupted work of industrial enterprises in crisis situations, in conditions of limited resources, to enable enterprises to modernize their equipment, maintain the continuity of operational processes, stimulate innovative developments, the enterprise needs to attract additional financial benefits, which are best realized in the form of investments, which allows benefit from them in the future. A comprehensive, multi-faceted, investment strategy must be developed and implemented in order to be able to best attract investment and make the most of it. The article raises the issue of development of investment activity of an industrial enterprise and its introduction as an element of strategic stability, taking into account the peculiarities of the industry. The scientific and methodological basis, works and opinions of scientists have been investigated and considered, and an alternative definition of the concept of «investment strategy» is formed. The development of industry enterprises is extremely dependent on the investment attracted, because they are a building raw material and an element of strategic stability. The main factors that have a significant impact on the process of creating and implementing it at the enterprise have been developed to create a competitive investment strategy. The main directions of investment activity at industrial enterprises, which should provide the enterprise with strategic stability and continuous work in the future have been developed too. Currently, the formation of an investment strategy at enterprises is limited, and has many obstacles on its way to implementation, both at the state level and because of incompetence on the ground. But it allows the enterprise to become stronger and more independent of external conditions. In the future, with the development of the investment market of Ukraine, and its integration into a more developed European economy, this issue will become new features and colours.