Title page
Contents
Foreword 3
1. Introduction 5
1.1. Investment promotion for growth and sustainable development 5
1.2. State aid and special economic zones can support investment promotion objectives 6
2. Regional State aid 8
2.1. Concept of State aid and compatibility of regional aid with the internal market 8
2.2. Lessons learned from the European Commission's decisional practice on large investment projects 18
2.3. Lessons from the case law and mistakes to be avoided 24
3. Special economic zones 26
3.1. Key characteristics and objectives of special economic zones 26
3.2. SEZ governance and legal frameworks 32
3.3. Maximising positive SEZ spillover effects 40
Annex A. Calculation of the gross grant equivalent of State aid 42
References 54
Table 1.1. Main policy tools to promote, facilitate and retain FDI in remote or less developed regions in OECD countries 7
Table 3.1. Examples of different SEZ typologies 29
Table 3.2. Traditional SEZs versus more preferred SEZs 30
Table 3.3. Tax, financial and non-tax incentives in SEZs 38
Figure 1.1. The role of FDI in the EU's economy, 2011-21 5
Boxes
Box 2.1. Conditions on large investment projects 19
Box 2.2. A simple checklist to avoid common mistakes 23