The Organisation for Economic Co-operation and Development (OECD) has unveiled a policy framework intended to help governments attract private investment for digital transformation, expanding on its existing investment standards.
Called the Investment Policy Framework for Digital Transformation, the tool builds on two earlier OECD instruments: the Policy Framework for Investment (2015 edition) and the foreign direct investment (FDI) Qualities Policy Toolkit.
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The framework is intended to support governments in shaping the conditions needed to bring in private capital that backs digital transformation efforts.
OECD data cited alongside the launch points to a change in global investment flows.
Greenfield foreign investment going into sectors that support digital ecosystems rose from 15% of total global greenfield investment in 2016–2020 to 26% in 2021–2025.
In information and communication technology (ICT) manufacturing, investment remained heavily concentrated among the largest multinational companies.
The top 20 multinational enterprises in the sector accounted for 81% of all greenfield FDI recorded between 2021 and 2025.
The OECD also highlighted a growing divide in skills demand.
Among foreign-owned companies operating across the OECD that reported changing skills needs, 62% said they were looking for digital skills. Among domestic businesses, the comparable figure was 55%.
The new framework rests on four building blocks carried over from the FDI Qualities Policy Toolkit.
Governance, the first, covers institutional responsibilities, co-ordination mechanisms, and alignment between investment policy and digital policy.
Domestic and international regulation, the second, spans competition policy, intellectual property protection, cross-border data flow rules, and national security considerations.
Technical and financial support, the third, addresses infrastructure gaps and skills mismatches through public-private partnerships, incentives, and capacity-building.
Information and facilitation services, the fourth, focuses on the role investment promotion agencies play in narrowing information gaps for investors.
According to the OECD, the framework is intended for several uses.
These include incorporation into Investment Policy Reviews and FDI Qualities Reviews, support for governments carrying out self-assessments and reforms, and peer reviews undertaken through regional or multilateral processes.
The OECD said the framework was developed using country assessments from Morocco, Uzbekistan and Vietnam.
It also drew on input from the OECD Investment Committee, the FDI Qualities Policy Network, the FDI Qualities Advisory Group, several OECD directorates and external bodies including UN Trade and Development and the World Economic Forum.
Switzerland funded the work relating specifically to investment and digital transformation.
The broader FDI Qualities Initiative is financed jointly by the Netherlands and Switzerland.
