This edition dives into how digital strategies can help countries attract investment into the fast-growing digital economy —and where the gaps remain.

The digital economy is expanding rapidly, but investment remains uneven and key policy gaps persist. The latest Investment Policy Monitor builds on and expands the analysis of the World Investment Report 2025, examining the investment dimension of digital strategies. It reviews regional, national and sectoral initiatives and identifies common challenges in turning these strategies into effective instruments for mobilizing international investment in digital transformation.

By 2024, 86 per cent of developing economies and 80 per cent of least developed countries had adopted national digital strategies, up from less than half and one quarter, respectively, in 2017. However, many strategies are insufficiently integrated with industrial, investment and environmental policies. Fewer than half reference foreign direct investment, only about one fifth involve investment promotion agencies, and few set measurable investment targets. Environmental considerations are also limited. Although digital expansion increases energy use, emissions and electronic waste, only about 55 per cent of developing-economy strategies mention these issues, often in broad terms.

Regional digital frameworks differ in scope, national uptake and level of sophistication, including as in their treatment of investment, but offer opportunities to enhance policy coherence and market integration. Sector- and technology-specific strategies, for example on artificial intelligence, data centres or semiconductors, can also guide investment by clarifying priorities, improving regulatory certainty and, in some cases, embedding sustainability standards. However, their adoption remains limited, particularly in developing countries.

To fully harness digitalization for inclusive and sustainable development, countries need coherent, forward-looking policy frameworks. Clear investment objectives, alignment of digital and industrial strategies, integration of environmental standards, infrastructure planning and active engagement of investment promotion agencies are all essential. Linking national plans to regional frameworks and targeting strategic investors can further enhance the effectiveness of digital strategies in mobilizing international investment and advancing sustainable digital transformation.

Read the full report here