German threat to UK's inward investment lead Steve Varley, Ernst & Young's UK and Ireland managing partner, said the research was a "wake-up call." The consistent theme coming through loud and clear from investors is that the UK needs to focus on three areas to increase its attractiveness: research ... and innovation; developing education and skills; and creating a strong economic environment that balances demand, efficiency and incentives. Where Germany won favour among investors for transport, skills, logistics and telecoms infrastructure, Ernst & Young said the UK "attracts investors based on softer criteria such as quality of life and political stability. More analysis is required to understand if more investment is required in physical facilities to reposition the UK. The research also highlights an over-reliance on London-centric projects focused on financial and professional services. The UK is less well positioned in the automotive, machinery and transport sectors, "which are the major sources of new jobs in Europe from FDI." London increased its share of FDI, while all other English regions suffered slumps in new projects. The researchers said it "remains to be seen" whether the Government's decision to close the Regional Development Agencies (RDAs) - local growth bodies - had hit the "ability to reinvigorate growth at a local level." Lord Green, the trade minister, said he was "delighted" that the UK retained its status as a lead destination for FDI but added: "There is no room for complacency. We recognise our market share has declined. There is always more we can do to enhance the UK offer to overseas enterprises. The Government announced yesterday that bidding has now closed for the £1bn pot available under the third round of the Regional Growth Fund, the Coalition's attempt to stimulate jobs and investment in areas that had been dependent on public sector spending. More than 400 applications were made and decisions on where to allocate funds will be made in the autumn.