For decades, the United Kingdom has made attracting foreign companies a key aspect of its industrial policy. The country’s public authorities were convinced from an early stage that the penetration of foreign capital would have a positive impact on the national economy.

While industry is in decline in most developed countries, Germany is generally held up as an example for its excellent performance (Hénard,2012). Yet another country, Sweden, seems to be doing better still. Over the last twenty years, both of these countries have succeeded in keeping hold of more of their industrial base than their European neighbours and in maintaining very positive trade balances.