The article examines how different policies can attract Foreign Direct Investment (FDI) in countries from Europe and the US. By analyzing data from 1995-2003, the researchers found that increasing R&D spending in Central and Eastern European Countries could lead to more FDI, while improving labor productivity and tax policies in the US and EU countries could attract additional investment. The study shows that specific policy changes can help countries close the gap between their current FDI levels and their potential for attracting more investment.