This chapter addresses the theme of cohesion and conflict from the policy perspective of inward investment agencies seeking to attract, retain and develop foreign direct investment from multinational enterprises. The chapter begins with a brief overview of the environment for inward investment in the EC in the late 1990s and the problems and potential for regional economic development. Thereafter the existing activities of inward investment agencies are evaluated, with the main emphasis of the chapter – following the policy thrust of Chapter 8 by Amin and Tomaney – concerning possible policy changes in the areas of promotional targeting, after-care, and merger, acquisition and alliance policy and their contribution to economic development.