In spite of growing competition, Russia stands a good chance of attracting significant technologies and know-how through FDI, but it must move rapidly to reform FDI mechanisms. Valuable investments may otherwise be lost during these crucial years when TNCs are taking decisions on foreign investments. Opportunities lost to competing economies will impact negatively on Russia's economic stability during its critical transition phase.
Russia must take its main challengers seriously. Practically all LEM governments strive to attract FDI from all important source regions. Knowing that most companies can commit human and financial resources to only one country at a time, 51 governments strive to improve their 'pitch' with customized incentive packages. In addition, Russia can build a highly competitive position by also upgrading its human resources.