Transparency and efficiency are keys. Estonia has improved its ranking in the 2023 Corruption Perceptions Index, moving up to 12th out of 180 countries. The top five countries in the 2023 index are Denmark, Finland, New Zealand, Norway, and Singapore. Lithuania ranks 34th globally, and Latvia follows in 36th place.
Estonia, with its advanced e-government and anti-corruption measures, has demonstrated significant progress in improving transparency within its public sector. This translates to the private sector as well and is reflected by the Ease of Doing Business Index (EDBI), where Estonia is 14 out of 190 economies. Research highlights a correlation between the two indices, with countries that score poorly on the CPI also tending to rank lower on the EDBI.
At the same time, Tallinn was ranked in the list of top ten medium-sized European cities in two categories in the Financial Times’ fDi Magazine’s “European Cities and Regions of the Future 2024” rankings. This group is defined as one with an immediate population of more than 200,000 and an urban area of more than 750,000 people, or an immediate population of more than 350,000 but fewer than 2 million.
Tallinn ranked highly in employment participation rate, education level, knowledge and skills, business-friendly entrepreneurship, and investment environment. It achieved tenth place for employment participation rate and third place for business-friendly entrepreneurship and investment environment. In the overall score, Tallinn has secured 10th place.
On top of the category, there’s the Polish city of Wroclaw. It was a record year for greenfield projects, with an estimated capital expenditure of $5.3bn. The latter figure was helped along mostly by US chip giant Intel’s $4.6bn investment in a semiconductor assembly and test facility near the city. Located in the south-west region of Lower Silesia, Wrocław is also home to tech and innovation. According to the Polish Startups Report 2023, the region was home to the highest number of start-ups in the country, at roughly 28% of the country’s total last year.
The podium sees also Vilnius (3rd place). Like others in this category, Lithuania’s capital is an innovation hub accounting for more than 90% of the combined value of start-ups headquartered in the country. With more than 740 start-ups and three unicorns, Lithuania has been one of the fastest-growing start-up ecosystems in Central and Eastern Europe since 2017.
Harju County, the capital region located in North Estonia, was also counted among the best small regions for business-friendliness, in third place.
The highlight of the above category is the former capital of heavy industry Katowice, Poland. The central city of the GZM Metropolitan Area with 2.3M residents, has turned over a new page and is now looking to a more sustainable future. With the help of EU funds (over PLN 309M) Katowice is renovating the old mine to transform it into the New Technologies District – Katowice Gaming and Technology Hub. It is planning to open the old-new space to e-sports companies, TV producers, and high-tech investors.
In 2024 there are 105 centers (even more in the region) which is the reason why Katowice has focused on education. To show students various career opportunities, Katowice has been introduced four programs, including a Corporate Readiness Certificate (by Accenture, EY, ING Hubs Poland, and Kyndryl GSDC) and international P-Tech (by Fujitsu Technology Solutions and Kyndryl GSDC), to the local schools and universities. They highlight different paths that help graduates smoothly enter corporate life.
Having in mind the importance of education, Katowice joined forces with seven public universities to apply for the title of the European City of Science. Victory has confirmed its ambitions and strengthened the resolution to become the new technology leader. The program offers fifty weeks of experiments and interactive workshops with business institutions engaging in the events.
The FDI attractiveness of a city or region is determined by factors such as economic potential, human capital, cost-effectiveness, connectivity, and business friendliness. With their strategic location, digital advancement, and favorable business climate, Poland and the Baltics continue to attract investment and businesses, setting up a benchmark for ambitious economies.