Estonia has reclaimed the top spot in a new ranking of investment promotion agencies across Central and Eastern Europe, ending two years of Latvian leadership. The change reflects a major shift in evaluation criteria, with this year’s assessment prioritizing reinvention over traditional measures such as cost efficiency, incentive packages, or workforce availability.
The ninth edition of the ranking covered 31 agencies from the Baltics, Balkans, and Central Asia. Estonia secured first place with an 89.71% score, surpassing Moldova in second by less than 1.5 percentage points. Latvia, which had held the top position for the previous two years, now ranks third, tied with Czechia and Lithuania. The three Baltic states remain among the top five, showing the region’s continued strength in attracting foreign capital.
The updated methodology departs from past evaluations by focusing on seven reinvention capacities: foresight, identity, choice, reallocation, adaptability, execution momentum, and reinvention culture. This approach aims to identify agencies that move beyond conventional selling points—such as tax breaks or geographic advantages—and instead emphasize what makes a country uniquely positioned for long-term growth.
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Why traditional incentives no longer cut it
Traditional investment promotion has long centered on four key factors: location, talent, cost, and incentives. While these elements can deliver short-term results, they offer little in the way of lasting differentiation. The new ranking instead asks: What would investors lose if this country disappeared? The answer, according to the report, is rarely found in the standard four pillars, as these can be easily replicated elsewhere.
Estonia’s performance under the new system stems from its long-standing digital-first strategy and streamlined bureaucracy, both of which it has promoted internationally for years. The country’s Invest Estonia agency facilitated investment decisions worth €431 million in 2025, partly through a revised grant program with a lowered eligibility threshold of €70 million. However, its greatest strength lies in its ability to respond swiftly to industry needs. In May 2025, Estonia’s parliament approved a fast-track approval process for strategic investments after business leaders raised concerns about bureaucratic delays, demonstrating how closely the agency collaborates with government and private sector stakeholders.
Moldova’s ascent to second place reflects a deliberate pivot in its investment strategy. Invest Moldova has positioned the country as a critical logistical hub for Ukraine’s reconstruction, leveraging its geographic proximity to the conflict zone and access to EU funding streams. While low labor costs remain a selling point, Moldova’s ability to integrate reconstruction financing with its EU accession ambitions sets it apart from competitors.
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How top agencies now chase quality over quantity
The ranking suggests that agencies must now prioritize quality over sheer volume, focusing on high-potential sectors rather than pursuing every possible deal. They should also deepen engagement with existing foreign firms. A truly reinvented agency would also anticipate future capital flows, publishing forward-looking analyses on where investment will concentrate over the next five years and why their country is best positioned to capture it.
The report found that none of the 31 ranked agencies fully meet the new reinvention criteria, though Estonia and Moldova come closest. Their success indicates that the most competitive agencies will be those willing to rethink their entire approach, not just refine what they’ve always offered, but develop assets that investors cannot find elsewhere.
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