This article focuses on the way greenfi eld foreign direct investment ( FDI ) in different sectors is infl uenced by locational characteristics and explores the role of policy in attracting and retaining foreign investment. We contribute to the literature by empirically investigating the investment motivations of multinational companies in the software and information technology ( IT ) and fi nancial services sectors in Ireland and those locational factors that contribute to the retention of FDI . The methodology used in this research is of a qualitative nature, and an exploratory deductive approach is adopted in order to gain an understanding of fi rms' internationalization decisions and motivations. The data demonstrate that companies in the two sectors follow different investment motivations. Firms in the software and IT sector entered Ireland primarily because of the availability of a high-quality workforce, whereas fi rms in the fi nancial services sector entered Ireland following the deregulation of markets and the subsequent ease of doing business. The article builds on these fi ndings to develop policy recommendations.