Devolution and the territorial politics of foreign direct investment

In this paper, we consider the possible effects of devolution on the territ orial politics of foreign direct investment (FDI), focusing on two regions in particular: Wales and the North East of England. Informed by recent work on the politics of spatial scale, the paper draws attention to the role of regional actors in supporting processes of globalisation from below whilst also suggesting that regions are produced from above through processes of FDI-led globalisation and state rescaling. We explore the territorial polit ics of FDI in the UK through the central notion of an Inward Investment Ser vice Class (IISC). This concept enables us to operationalise our ideas of ' bottom up' globalisation and 'top down' regionalisation by focusing attenti on on the role of a specific set of economic development interests within t he two regions. The paper argues that while the notion of an IISC highlight s important relationships within Wales and the North East, it is questionab le whether the groups identified actually function as an identifiable coali tion. In terms of how devolution might shape approaches to FDI in the conte xt of pre-existing institutional differences between Scotland, Wales and th e English regions, we suggest that the prospect of increased inter-regional competition for FDI may be balanced by inter-regional collaboration. In co nclusion, the authors stress the need for further research to advance our u nderstanding of how processes of globalisation from below actually operate. (C) 2001 Elsevier Science Ltd, All rights reserved.