Louisiana’s economic development arm has won a $170,000 federal grant that it will use to expand the state’s capabilities to predict and attract investments by foreign companies.
Louisiana Economic Development says it will use the U.S. Economic Development Administration grant to create an international trade recruitment tool called the Predictive Investment Model, or PRIMO.
LED says the forecasting and recruitment tool will provide a framework for it to predict investment in the U.S. and in competitive locations by foreign firms, thus allowing the state to target international companies looking to expand.
“Our team keeps a close eye on high-growth international companies that might have plans to expand into the United States,” LED Secretary Don Pierson says in a statement. “This project will give us a more efficient way to identify new corporate leads, hone our outreach, and market Louisiana as a viable, attractive location to relevant foreign investors.”
The idea is to attract more companies like China’s Wanhua Chemical Group, which picked Louisiana for its $1.12 billion chemical manufacturing complex.
PRIMO will operate in two phases, the agency says. The first is a comprehensive research phase that identifies metrics that correlate with U.S. investments by international firms.
The metrics will be used to build an algorithm that identifies foreign firms likely to engage in future investment, the agency explains. The companies will be prioritized based upon characteristics that have been determining factors in their decision to undergo an international expansion.
Secondly, LED expects that the forecasting tool will be implemented over a 21-month period, during which it will be tested, adjusted and refined through direct outreach to foreign companies.
“As it is integrated into LED’s daily operations, PRIMO should be able to generate timely lead suggestions for further exploration by LED’s business development team,” LED says.
To qualify for the competitive federal grant, the state put forth a $175,000 match, making the total value of the project $345,000. LED says funds for the match came from its Office of International Commerce, which actively pursues foreign direct investment opportunities around the world.
Pierson says the office, created in 2012, maintains business development campaigns in strategic markets and key industries.
