Experts Say Industrial Ecosystems, Not Land and Subsidies, Will Attract Investment

Land and subsidies alone will not be enough to win investment as the secondary-battery and future-vehicle industries move through a period of stalled growth, experts say.

The industries are facing what is often called a “chasm,” a difficult phase between early growth and broader expansion. In that environment, regions need to compete by building industrial ecosystems rather than simply offering sites or financial support.

The experts called for governments, companies and universities to identify the missing links in industrial ecosystems and move proactively to fill them. Their argument comes as global supply chains undergo restructuring.

Companies, they said, also need to prove the viability of their businesses with data. The emphasis on connections among public institutions, industry and academia reflects a view that investment depends on a functioning network of capabilities, not on individual incentives alone.