invest in america december 2010

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Aaron Brickman Director Invest in America U.S. Department of Commerce Washington, DC Promoting Foreign Direct Investment

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Promoting foreign direct investment

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Page 1: Invest In America December 2010

Aaron BrickmanDirector Invest in AmericaU.S. Department of CommerceWashington, DC

Promoting Foreign Direct Investment

Page 2: Invest In America December 2010

2

5.5 million

$40 billion

$55 billion

$404 billion

Source: Department of Commerce, Bureau of Economic Analysis

FDI in the U.S. Economy

U.S. Affiliates of Foreign Firms Generate 19% of U.S.

Exports ($204 billion in 2007)

Page 3: Invest In America December 2010

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Top 10 FDI Positions in the United States, 2009

Note: Numbers denote percentage of the global investment position in the United States

U.S. FDI Trends

2%|$45.7b

10% | $225.8b

11% | $264.2b

20%| $453.9b 9% | $218.1b 6% | $127.8b

10% | $238b 8% | $189.4b 8% | $189.3b 2% | $43.9b

Page 4: Invest In America December 2010

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2009 European Investment Positions in the United

States

Source: BEA

Average Annual Growth Rate of European FDI Positions in the United

States 2005 - 2009

European FDI in Perspective

Page 5: Invest In America December 2010

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Industry Breakdown of FDI Position in the United States, 2009

Source: Bureau of Economic Analysis

FDI in the U.S. – Industry Perspective

Page 6: Invest In America December 2010

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Source: Bureau of Economic Analysis

Top 10 FDI Growth Sectors in the United States

(Compound annual growth rate in FDI position between 2005 and 2009 and dollars in 2009 on a historical cost basis)

FDI in the U.S. – Industry Perspective

Miscellaneous Store Retailers

Educational Services

Copper, nickel, lead and zinc ore

Computers and Peripheral Equipment

Wired Telecommunications Carriers

Beverage and Tobacco Products

Petroleum Refining (excluding oil/gas extraction)

Communications Equipment

Other Services (excl. public sector and private households)

Steel Products from Purchased Steel

94%

$3.573 billion

$7.517 billion

$19.464 billion

-$953 million

$55.031 billion

$6.556 billion

$10.865 billion

$3.856 billion

$5.613 billion

89%

73%

73%

69%

66%

57%

52%

50%

42%

$6.991 billion

Page 7: Invest In America December 2010

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Western European Greenfield FDI Announcements in U.S. Green Energy Sector

Source: fDi Markets

FDI Projects in U.S. Alternative/Renewable Energy Sector,

2003-2009

Page 8: Invest In America December 2010

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FDI in U.S. Green Energy Sector

Source: fDi Markets2010 data as of November 19, 2010

Asian-Pacific FDI in

U.S. Renewable Energy Sector

Western European FDI in U.S.

Renewable Energy Sector

Page 9: Invest In America December 2010

99

Infrastructure Investment: High Speed Rail

•$10.5 billion in funding to jumpstart the High Speed Intercity Passenger Rail Program through the American Reinvestment and Recovery Act and extensions•Local content rules apply, but 19 of the 55 firms the Florida bidding partnerships are European and a majority of bidding firms are foreign•Several projects are seeking out or considering public-private partnership funding

Sources: Dept. of Transportation, White House, State of Florida

Page 10: Invest In America December 2010

101010

• Strategic Market & FTAs (Population of U.S. and FTAs is 610 million; U.S. 42% of Global Consumer Goods Market)

1

• Center for Entrepreneurship (11.5% of Americans are Entrepreneurs)

2

• A Leader in Higher Education (Seven of the Top Ten Universities in the World are in the U.S.)

3

• Productive Workforce (U.S. leads world in labor productivity per person; productivity gap between U.S. and most developed economies is growing)

4

• Open to Cultures and Ideas (U.S. has more Irish than Ireland, Filipinos than Manila, Chinese than Hangzhou* and Poles than Warsaw)

5

1. Office of the U.S. Trade Representative; Central Intelligence Agency – The World Factbook; and Credit Suisse survey; 2. Florida International University/University of Michigan study, 2005; 3. The Times Higher Education Supplement 2010 (U.K.); 4. 2007 International Labor Organization Report; 5. U.S. Census Bureau, *Hangzhou city proper

USA: A Great Return on Investment

Page 11: Invest In America December 2010

1111

The United States: An Attractive Business Climate

World Economic Forum’s 2010-2011 Global Competitiveness rankings

World Bank 2010 Ease of Doing Business Report

AT Kearney’s 2010 FDI Confidence Index

#2#4#5

#1

IESE Business School’s 2009-2010 Venture Capital and Private Equity Index

Page 12: Invest In America December 2010

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The United States: A Leader in Technology and Innovation

Businessweek:

OECD:

43 U.S. companies ranked among the top 100 world IT firms

18 U.S. companies ranked among the top 50 world IT firms

These 18 firms account for 35% of all revenue of the top 50 firms – and 58% of their market capitalization

Page 13: Invest In America December 2010

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The United States: World Leader in Research &Development

In 2007, 41% of all R&D in developed countries took place in the U.S.

Other

Almost 50% of all researchers in the developed world work in the U.S.

More Nobel prize winners completed their winning research in the U.S. than in all other countries combined.

Sources: OECD, www.nobelprize.org

Page 14: Invest In America December 2010

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Italian FDI in the United States

Recent Greenfield Investment Announcements:

Source: fDi Markets

August 2010: Prati announced plans to invest $80 million in a new production and R&D center in South Carolina, creating an estimated 80 jobs.

May 2010: Coim S.p.A. announced a $26 million expansion of its New Jersey plastics plant, creating an estimated 56 jobs.

May 2010: Eni announced the opening of the Eni-MIT Solar Frontiers Center in Massachusetts, investing $27 million over five years and creating an estimated 172 jobs.

July 2010: Techniplast announced a $9.6-million expansion and relocation of its U.S. headquarters in Ohio, which will create an estimated 27 jobs.

March 2010: Binari Sonori announced the opening of a $7.10 million business development and production office in California that will create an estimated 25 new jobs.

Page 15: Invest In America December 2010

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Invest in America

• Created in 2007

• Primary U.S. Government Mechanism to Manage Foreign Investment Promotion

• What We Do:

1. Facilitate Investment Inquiries

2. Act as Ombudsman

3. Connect Investors with U.S. States

4. Provide Policy Guidance

5. Educate Investors

Page 16: Invest In America December 2010

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Facilitating Business InquiriesInvest in America provides actionable information to foreign firms to help them:

• Incorporate a business in the U.S.• Understand basic U.S. tax and legal concepts• Learn about incentives available to businesses in

the U.S.• Connect with U.S. state, city, or regional economic

development offices to learn about investment opportunities

• Apply for a business-related visaForeign investors can communicate with Invest in America staff by phone or email in Washington, DC, or meet with members of the U.S. Foreign Commercial Service in almost 80 countries around the world.

Page 17: Invest In America December 2010

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Federal State and Local

Invest in America

Single Point of Contact for Foreign Investors:

Page 18: Invest In America December 2010

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Invest in America

Ombudsman for Foreign Investors:

Page 19: Invest In America December 2010

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U.S. Investment Promotion

• Electric Drive Vehicle Battery and Component Manufacturing Initiative

• National Institute of Health Challenge Grants in Health and Science Research

• Business Energy Tax Credit

• Loan Guarantee Program

• Wind and Hydropower Technologies Program

• Updated Guide Available July 2010 at http://www.investamerica.gov/

• Contact Invest in America with questions

Page 20: Invest In America December 2010

Contact Information

20

Aaron BrickmanDirector, Invest in AmericaTel: 202-482-1889Email: [email protected]: http://www.investamerica.gov