How regions can turn existing companies, industrial capabilities and cross cutting technologies into the next generation of investment

Europe is entering a more selective investment cycle. Foreign direct investment projects in Europe fell by 7% in 2025, while Germany recorded a 10% decline. At the same time, project numbers grew strongly in artificial intelligence, defence and low carbon energy.1 

This changes the question for economic development. With fewer mobile projects available, regions have more reason to look closely at the companies already operating locally. Existing investors can be a major source of reinvestment, diversification and new projects, alongside continued work to attract new investment. 

The investment pipeline next door 

Investor aftercare has always been part of economic development. What has changed is how it can be done. Account segmentation, AI assisted signal monitoring, targeted outreach and venture clienting can help teams spot opportunities earlier and focus their time on companies with real potential to reinvest. 

Existing companies are part of a region’s investment pipeline. They already know the location, employ local talent and operate within established supplier and research networks. The opportunity is to help them use that base to enter new markets, adopt new technologies and expand at the site. 

Investor aftercare and inward investment work best when they reinforce each other. Stronger local companies and denser regional ecosystems give international investors more evidence of what a location can support. External scaleups, technology partners and capital can also help local companies diversify and grow. 

Transformation starts with strengths 

The starting point should be a clear view of the capabilities a location already has and the markets they can serve. AI, quantum technologies, hydrogen and dual use applications cut across established value chains. Their value comes from combining them with industrial expertise, infrastructure and real market demand. 

Examples across Germany show what this can look like: 

• North, Hamburg: aviation meets AI and robotics.

  The DrumView project brings together the ZAL Center of Applied Aeronautical Research, Hamburg based technology company 3D.aero and Hamburg University of Technology. The partners are developing a mobile camera and sensor system that creates a digital model of an aircraft cabin and uses AI to detect anomalies such as scratches, contamination, incorrect gaps and wrongly installed components. The project runs until the end of 2026 and shows how an established aviation ecosystem can turn AI and robotics into a practical industrial application.2

• North West, Osnabrück: automotive capabilities meet security and defence.

  Volkswagen, the State of Lower Saxony and Aurelius Capital have agreed key terms for the possible sale of Volkswagen Osnabrück GmbH. Their intention is to develop the site gradually into a competence centre for security and defence solutions, building on its workforce, industrial infrastructure and experience in development and industrialisation. An initial air defence project with Rafael is planned, but the transaction and future activities remain subject to final agreements, corporate approvals and regulatory review.3

• West, Duisburg: steel meets hydrogen ready production.

  Thyssenkrupp Steel is building a hydrogen capable direct reduction plant with two electrically powered melters at its existing Duisburg steelworks. Green hydrogen is unlikely to be available at the required scale when the plant starts. It is therefore designed to begin with natural gas and convert to hydrogen as supply and infrastructure develop. In September 2026, Jacobs confirmed an extension of its project and construction management role as the facility moves towards first iron production.4

• East, Saxony: microelectronics meets industrial AI.

  Saxony’s established microelectronics and ICT base is expanding across the wider semiconductor ecosystem. Recent investment includes automation, robotics, measurement technology, cleanroom infrastructure and industrial AI solutions. This shows how a mature technology cluster can create new growth by linking chip production, software, specialist suppliers and research.5

• South, Munich and Bavaria: quantum research meets industrial applications.

  Munich Quantum Valley connects research and industry across quantum technologies. Its Quantum Pathway programme starts with current business problems and provides training, access to expertise and joint development of quantum computing applications. It offers a practical route from scientific capability to corporate testing and use.6

The common point is simple: transformation works best when new technologies are matched with clear regional strengths and a real market need. 

What I’ve seen work 

Over the past 12 months, I’ve spent a lot of time working with regions and economic development teams on this question: how do you create more investment from the companies, capabilities and relationships already in place? 

A few things have stood out. The strongest programmes I’ve seen start with a good understanding of the company base, move quickly when an opportunity appears and have people who take real ownership. The tools are getting better, particularly around AI and company intelligence, but the difference comes from how they’re used day to day. 

These are the things I think matter most in practice. 

• Data: For me, the starting point should always be good data. Regions need to understand their companies, their capabilities and the changes taking place in their key industries. AI can make this work faster and more focused. It can help identify investment signals, expansion plans, innovation needs and potential risks much earlier. It also allows economic development teams to focus their time on the companies and opportunities where they can make the biggest difference.

• Ideas and programmes: Technology alone isn’t enough. Successful programmes need dedicated people who take ownership, build trusted relationships and keep things moving. They need clear priorities, fast decisions and a willingness to try new approaches. This may mean connecting a local company with an international startup, supporting a pilot project, helping a business enter a new market or bringing the right public and private partners around one table. 

• Speed: Speed matters too. When an opportunity or risk becomes visible, economic development organisations need to be ready to respond at the right moment. This means understanding the business case, coordinating relevant partners and providing practical support that helps move the project forward.

• Commitment: The regions that succeed will combine data, AI and new tools with something more traditional: commitment. They’ll stay close to their companies, act on the information they receive and remain involved until an opportunity becomes a real project. Strategy matters, but implementation is what creates investment, innovation and jobs. 

What doesn’t work 

What doesn’t work (as always) is a polished strategy with no clear owner, budget, timetable or implementation. A strategy should set the direction, but it only becomes valuable when a dedicated team turns it into company conversations, pilot projects and investment decisions. 

From local assets to projects 

Most regions already have many of the ingredients: established companies, specialised suppliers, universities, research institutes, startups, skilled workers and industrial sites. These assets often sit in separate programmes and networks. Maps and asset inventories are useful. The real work is bringing those assets together around a company need or an investable project. 

For economic development organisations, this points to four practical priorities: 

• Strategic investor aftercare and key account management. Segment the company base and focus scarce resources on businesses with strong potential for reinvestment, innovation, diversification or retention.
• AI enabled signal monitoring. Track company news, recruitment, leadership changes, patents, investment announcements and restructuring signals to identify the right moment for proactive engagement.
• Venture Clienting and  Innovation transfer tools. Start with a defined operational challenge inside an established company, identify suitable startups, scaleups or research partners, and support a pilot or proof of concept (Venture Clienting)
• Conversion, not just connection. Measure activity vs success through pilots, supplier relationships, new production mandates, site expansions and investments, not simply through events or introductions. Adjust strategy if needed. 

From growth within to new investment 

A stronger focus on growth from within gives internationalisation a clear job: finding technologies, partners, customers and investors that fit the capabilities already present. Regions can use international networks to source what their local companies and ecosystems need. Companies that successfully diversify and innovate become stronger anchors for their locations and more credible examples for future investment attraction.

OCO Global works with regions and economic development organisations on investor aftercare, key account management, AI-based company monitoring and venture clienting. Meet us at Expo Real in Munich to discuss how existing company needs and regional capabilities can lead to new projects and investment.

[1]  EY, European Attractiveness Survey 2026, 21 May 2026. https://www.ey.com/en_gl/foreign-direct-investment-surveys/why-foreign-investment-in-europe-is-resi… (accessed 30 September 2026).

[2]  ZAL Center of Applied Aeronautical Research (https://zal.aero/news/kabineninspektion-vom-klemmbrett-zur-ki/) ; Hamburg University of Technology, Institute of Aircraft Production Technology, “DrumView,” December 2026, https://www.tuhh.de/ifpt/forschung/forschungsprojekte/laufende-projekte/drumview (both accessed 30 September 2026).

[3]  Volkswagen Group, “Setting the course for the future of the Osnabrück site (https://www.volkswagen-group.com/en/press-releases/setting-the-course-for-the-future-of-the-osnabru… (accessed 30 September 2026).

[4]  thyssenkrupp Steel Europe, “tkH2Steel: our path to climate neutral steel production,” updated 19 February 2026. (https://www.thyssenkrupp-steel.com/en/company/sustainability/climate-strategy/climate-strategy.html) ; Jacobs, “Jacobs extends role on German hydrogen capable direct reduction plant,” 24 September 2026, https://invest.jacobs.com/news/investor-news/news-details/2026/Jacobs-extends-role-on-German-hydrogen-capable-direct-reduction-plant/default.aspx (both accessed 30 September 2026).

[5]  Saxony Trade & Invest, “Silicon Saxony Days: Saxony’s High Tech Sector Is Growing Against the National Trend,” 15 June 2026. https://business-saxony.com/en/news-events/news/news-detail/n2083-silicon-saxony-days-saxonys-high-… (accessed 30 September 2026).

[6]  Munich Quantum Valley, “Industry,” https://www.munich-quantum-valley.de/industry; and “Quantum Pathway,” https://www.munich-quantum-valley.de/industry/quantum-pathway (both accessed 30 September 2026). https://invest.jacobs.com/news/investor-news/news-details/2026/Jacobs-extends-role-on-German-hydrogen-capable-direct-reduction-plant/default.aspx (both accessed 30 September 2026).

[7]  Saxony Trade & Invest, “Silicon Saxony Days: Saxony’s High Tech Sector Is Growing Against the National Trend,” 15 June 2026. https://business-saxony.com/en/news-events/news/news-detail/n2083-silicon-saxony-days-saxonys-high-… (accessed 30 September 2026).

[8]  Munich Quantum Valley, “Industry,” https://www.munich-quantum-valley.de/industry; and “Quantum Pathway,” https://www.munich-quantum-valley.de/industry/quantum-pathway (both accessed 30 September 2026).