(Still) the Top Source of FDI
At $3.7 trillion, the total stock of foreign direct investment (FDI) in the United States is unrivaled. In fact, FDI was equal to 17 percent of U.S. GDP in 2016 alone. That same year, new FDI expenditures (to acquire, establish, or expand) totaled $457 billion — one of the largest-ever annual amounts, according to the Commerce Department’s Bureau of Economic Analysis.
Common Sense Pro-Business Reform
The United States is focused on creating an environment that attracts investment and removes the hurdles that distract companies from their basic mission: to do business. A focus on regulatory reduction in the U.S. government has led to 22 federal regulations being removed for every new regulation created during the last year.
The recently passed Tax Cuts and Jobs Act lowered the U.S. corporate tax rate from 35 percent to 21 percent. That means companies operating here can keep more of their profits to reinvest in their operations — a significant benefit for any business.
These reforms, along with the proposed incentives to modernize U.S. infrastructure, are making the United States more attractive than ever as a business location.
When companies select the United States for investment, they’re not only bringing good-paying jobs to communities across the country, they’re tapping into a market powered by innovation. Noting a particularly fertile environment for building ideas into profitable businesses, the Global Entrepreneurship Index ranked the United States first out of 137 countries for its business-creation ecosystem.
With a deeply-rooted business culture of experimentation and evolution, wide access to capital, and other resources designed to help new ideas take flight, there is arguably no better market than the United States for entrepreneurs and startups to experiment, take calculated risks, and even “constructively fail.”
Select the USA for Innovation
Entrepreneurs benefit from — and contribute to — a flourishing ecosystem for invention and inspiration, thanks to the robust and comprehensive protection of intellectual property rights. Every year, more than a million new applications are sent to the U.S. Patent and Trademark Office, patents that contribute to a system of world-changing innovation.
Likewise, the United States is a recognized leader in research and development and has one of the highest-acclaimed networks of universities and institutions in the world. This culture of innovation offers an added competitive advantage to the business community and keeps the United States at the cutting edge of new ideas, technologies, and prosperity.
Pro-growth reforms like a lower tax rate and a reduction in regulatory hurdles make the U.S. business climate more favorable than ever. Made in the USA
By selecting the United States, international companies become part of the cities and towns they are investing in. Nearly seven million U.S. jobs — with an average salary well above the economy-wide average — are directly supported by the U.S. affiliates of majority foreign-owned firms. The impact doesn’t end there: millions more indirect jobs in an array of industries are created across the country as a result. These affiliates produce more than a fifth of all U.S. goods exports: $353 billion.
Additionally, companies exporting from the United States reap benefits not only from the “Made in the U.S.A.” brand premium (innovation, quality, and reliability) but also from U.S. government export assistance programs, giving U.S.-made goods a competitive edge in global markets.
Sourcing FDI
FDI in the United States is growing and diversifying. As of 2016, the United Kingdom remains the single largest source at 16.1 percent (nearly $600 billion in total stock), followed by Canada at 12.2 percent ($453.6 billion), and Japan at 11.4 percent ($424.3 billion). Increasingly, South America and Southeast Asia are among the fast-growing sources; Thailand, Argentina, and China all had compound annual growth rates (CAGRs) greater than 40 percent. Thailand, the fastest-growing source, had a CAGR of 55.5 percent.
If you are looking for the next step — either to invest or attract investment — there are several resources available.
SelectUSA is the U.S. national investment-promotion program that works to facilitate job-creating business investment and raise awareness of the important role that FDI plays in the U.S economy. SelectUSA serves as a single point of contact to help business investors and U.S. economic development organizations (EDOs) navigate the federal regulatory system. Working with U.S. EDOs, the program supports business investors seeking information and guidance about entering or expanding their operations in the United States. Support from the SelectUSA team helps businesses find inroads to investment opportunities and make the necessary connections to make deals happen.
Making Vital Connections: The SelectUSA Investment Summit
High-profile events like the annual SelectUSA Investment Summit facilitate many such connections, enabling business to explore locations across the nation in a matter of hours. Investment Summit participants also hear about the U.S. business and investment climate directly from senior government officials and industry leaders, and learn about specific resources and tools to invest in the United States. For more information and to apply to attend or exhibit, please visit the www.selectusasummit.us, and join the conversation on Twitter with #SelectUSASummit.
