South Korea has the unenviable task of setting itself up as an investment destination that can challenge nearby heavyweights China and Japan. However, the innovative use of free-trade agreements and pro-business policies are helping the country establish itself as a gateway into north-west Asia.

With just a handful of 'smart' cities across the world, the concept is still in its infancy. But while there may not be clear a blueprint for success, some cities are already reaping positive economic rewards for their smart thinking.

The province of Quebec stands out from the rest of Canada for myriad reasons. Its culture and language are obvious examples of this, but its proactive approach to attracting both investment and labour also give the region something to be proud of.

As the discord from the Arab Spring uprisings recedes in north African countries such as Morocco and Egypt, FDI is returning, with broadband and communications infrastructure a prime target for investors looking for high growth potential.

At the World Economic Forum meeting on Africa in Cape Town in May, fDi spoke to leading officials from three African countries that are implementing strategies to improve their records for attracting foreign investment.

Once the poster child of the UK's industrial decline, Sheffield's recession-defying growth in recent years has been based around the city and surrounding region using its past as a steelmaking and mining centre to embrace more modern technology, all backed up by training programmes supplying a steady stream of engineering talent.

Paris may attract the lion's share of France's FDI inflows, but the leaders of other French cities – Toulouse, Nice, Marseille and Lille – argue that there are just as many opportunities for investment elsewhere in the country, with specialist hubs and clusters growing in the life sciences, aerospace and textiles sectors.

As budget cuts loom in the US and businesses move their funding to growth regions such as China, fDi looks at whether the US's reputation as a global leader in R&D is under threat?