SelectUSA: A Federal Partner in Attracting Investment

Transcription

1 SelectUSA: A Federal Partner in Attracting Investment Aaron Brickman Deputy Executive Director SelectUSA.gov 1

2 Overview FDI in the U.S. FDI into Wisconsin About SelectUSA

3 FDI in the U.S. Economy 5.3 million $43 billion $154 billion $228 billion $410 billion 21% Workers Employed by U.S. Affiliates of Foreign Firms in the U.S. in 2009 Amount U.S. Affiliates of Foreign Firms spent on R&D in the U.S. in 2008 Amount U.S. Affiliates of Foreign Firms Spent on Capital Investments in 2009 Size of FDI Flows into the U.S. in 2010 Amount of Wages Paid to Employees of U.S. Affiliates of Foreign Firms in 2009 Percent of all U.S. exports come from U.S. subsidiaries of foreign firms in % U.S. Affiliates of Foreign Firms On average Pay 33% More than the economy-wide average in 2009 Source: Bureau of Economic Analysis 2/12/2012 SelectUSA.gov 3

4 FDI in the U.S. Economy 35.0% U.S. Subsidiaries of Global Companies Shares of Total U.S. Private- Sector Activity (2009) 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Employment GDP Capital Investment Imports of Goods Exports of Goods Research and Development Source: Bureau of Economic Analysis 2008 R&D figures are shown (latest available) 2/12/2012 SelectUSA.gov 4

5 U.S. FDI Trends Top 10 FDI Stock Positions, % $238.2b 21% $497.5b 11% $257.2b 9% $209b 11% $263.2b 5% $118b 3% $61.6b 3% $61.5b 2% $52.2b 2% $52.8b 2/12/2012 SelectUSA.gov 5

6 U.S. FDI Trends Top 10 FDI Growth Markets, % $52.2b 38% $61.6b 36% $44.2b 37% $13.3b 53% $5.8b 35% $33.9b 34% $7.1b 26% $15.4b 44% $21.2b 37% $3.3b Note: Numbers denote 5 year compound annual growth rate ( ) and total investment position in United States Source: Department of Commerce, Bureau of Economic Analysis FDI by Ultimate Beneficiary Owner 2/12/2012 SelectUSA.gov 6

7 FDI, Exports, and the U.S. Economy Top Export Markets, 2010 Top U.S. Export Markets are also among the top sources of FDI Canada: $249.1 Mexico: $163.3 UK: $48.4 Germany: $48.2 Netherlands: $34.9 France: $26.9 Belgium: $25.5 India: $19.2 China: $91.9 Japan: $60.5 S. Korea: $38.8 Singapore: $29.0 Hong Kong: $26.5 Brazil: $35.4 Australia: $21.8 Figures in USD Billions Source: Bureau of Economic Analysis 2/12/2012 SelectUSA.gov 7

8 U.S. FDI Trends SelectUSA.gov Source: U.S. Bureau of Economic Analysis 8

9 FDI into Wisconsin Between 2003 and mid-january 2012, foreign owned companies have announced plans to invest in 79 greenfield FDI projects in Wisconsin. Once (and if) all of these deals are finalized, they are expected to create $7.4 billion in new investment and create 11,000 new Wisconsin jobs. $ 14.6 billion 74,600 The value of gross property, plant, and equipment of majority-owned U.S. affiliates Jobs in Wisconsin resulting directly from U.S. subsidiaries of foreignowned firms (2009) Source: fdi Markets, U.S. Bureau of Economic Analysis

10 FDI into Wisconsin Source: U.S. Bureau of Economic Analysis

11 FDI into Wisconsin Source: U.S. Bureau of Economic Analysis

12 FDI into Wisconsin Recent Greenfield FDI Announcements April Australia-based medical waste disposal company Daniels Sharpsmart is set to open a 2045 sq m processing plant in Yorkville, Wisconsin. The plant will employ about 20 by late June, 2011 and will eventually hire up to 55. May Spain-based manufacturer SIC Lazaro has announced that it is to open a manufacturing facility in Milwaukee, Wisconsin in the US. the facility will produce industrial counterweights. The company is projecting to have a work force of about 35 employees in its first year of operation. June Domtar Corporation of Canada is planning to invest $255 million to set up a 50-megawatt biomass power plant by If established, this project will create approximately 400 jobs while the plant is being built, in addition to a further 150 full time jobs that will become available when it comes online. August Germany-based Thomas Magnete has chosen to locate its North American headquarters in Brookfield, Wisconsin. The move will create 27 jobs in the city by The company will invest $3m into buying equipment and renovating the facility. Source: fdi Markets

13 FDI into Wisconsin Major Foreign Investors in Wisconsin Source: fdi Markets SelectUSA.gov 13

14 The United States: A Great Return on Investment Strategic Market & FTAs Population of U.S. and FTAs is 695 million; 1 Center for Global Innovation and Entrepreneurship U.S. Responsible for 40% of Total World R&D Expenditures; 11.5% of Americans are Entrepreneurs 2 Strong Intellectual Property Right Protections 50% of the Patents Granted in 2009 by the U.S. Patent and Trademark Office Originated from a Foreign Country 3 A Leader in Higher Education Six of the Top Ten Universities in the World are in the U.S. 4 Productive Workforce U.S. leads world in labor productivity per person; productivity gap between U.S. and most developed economies growing 5 Open to People, Cultures, and Ideas U.S. has more Irish than Ireland, Filipinos than Manila, Chinese than Hangzhou* and Poles than Warsaw 6 1. Office of the U.S. Trade Representative; Central Intelligence Agency The World Factbook; and Credit Suisse survey; 2 RAND Corporation s National Defense Research Institute; Florida International University/University of Michigan study, 2005; 3. U.S. Patent and Trademark Office; 4. The Times Higher Education Supplement 2009 (U.K.); International Labor Organization Report 6. U.S. Census Bureau, *Hangzhou city proper 2/12/2012 SelectUSA.gov 14

15 Strategic Market & FTAs The United States has Implemented or Entered into Force 20 Free Trade Agreements With a Combined Population of Over 695 Million Consumers and a Combined GDP of $7 Trillion Dollars Source: USTR; CIA Factbook Free Trade Agreement Bilateral Investment Treaty Both 2/12/2012 SelectUSA.gov 15

16 Center for Global Innovation and Entrepreneurship #1 World Economic Forum s Global Competitiveness rankings for Innovation 8 The U.S. is Home to Eight of the Top Ten Knowledge Economy Regions of the World 22 Among Business Week s Top 50 Information Technology companies, 22 are U.S. firms 565,000 In 2010, an average of 565,000 new businesses were created in the U.S. per month Sources: World Economic Forum; World Knowledge Competitiveness Index 2008 (Centre for International Competitiveness); National Science Foundation Science and Engineering Indicators 2010; Kauffman Index of Entrepreneurial Activity ; 2/12/2012 SelectUSA.gov 16

17 Strong Intellectual Property Right Protections #1 The United States is the world s largest single market for protected goods, with over 1.9 million patents in force and 1.5 million trademark registrations in force. Of the more than 219,000 patents granted by the U.S. Patent and Trademark Office in 2010, over 50 percent were granted to an inventor in a foreign country. The U.S. is constantly ranked as one of the strongest places for intellectual property rights protection by the Property Rights Alliance (PRA). Source: USPTO 2/12/2012 SelectUSA.gov 17

18 The United States: World Leader in Research & Development Other 66% U.S. 34% In 2010, 34% of all R&D in the world took place in the United States Almost 50% of all researchers in the developed world work in the U.S. Approximately 45% of Nobel prize winners in the fields of Chemistry, Medicine, and Physics completed their winning research in the U.S. Sources: OECD, 2/12/2012 SelectUSA.gov 18 18

19 Wisconsin: Source of Highly-Skilled Labor Impact of University of Wisconsin System $ 1 Billion Spent on Research in 2010 $ 10 Billion Economic Impact 13 4-Year Universities +182,000 Students Enrolled Building bridges between our educational institutions and the private business sector should have payoffs in how well graduates are prepared to meet the challenges of an increasingly knowledge-based global economy." - Alan Greenspan Source: University of Wisconsin

20 About SelectUSA SelectUSA was created by the Executive Order of the President of the United States in June The Executive Order outlines: 1. The Administration s policy on business investment 2. The establishment and functions of the SelectUSA initiative SelectUSA.gov 20

21 Our Role Our mission is to encourage, facilitate, and accelerate business investment to create jobs, spur economic growth, and promote American competitiveness Geographically neutral in the United States Engage in international and domestic business investment What we do: 1. Facilitate Business Inquiries 2. Act as Ombudsman and Advocate 3. Connect Investors with State/Local EDOs 4. Conduct Investor Outreach 5. Lead and Coordinate an Interagency Working Group SelectUSA.gov 21

22 What We Do Facilitate Business Inquiries: SelectUSA 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 visa Investors can communicate with SelectUSA staff by phone or in Washington, DC, or meet with members of the U.S. Foreign Commercial Service in almost 80 countries around the world. SelectUSA.gov 22

23 What We Do Act as Ombudsman: SelectUSA.gov 23

24 What We Do Connect Investors to State/Local EDOs : SelectUSA.gov 24

25 What We Do Conduct Investor Outreach: Searchable Guide to Federal Investment Resources at Promote the U.S. business climate worldwide Contact SelectUSA with questions at SelectUSA.gov 25

26 What We Do Maintaining success in the U.S. Establishing the business Deciding where, how, and with whom to invest Understanding the U.S. investment climate Help firms locate federal programs and incentives for business retention and expansion Identify and work to remove barriers to success in cooperation with federal agencies Provide information on U.S. policies and help firms comply with regulations in setting up and operating their business Work directly with firms to resolve any problems on a caseby-case basis Connect firms with local or state resources for investment opportunities and incentives Connect firms to industry associations for industry-specific information and potential business partners Help firms learn about The ease and benefits of doing business in the U.S. The profiles of different U.S. industries Foreign direct investment statistics SelectUSA.gov 26

27 Business-Related Visas The United States must continue to attract the best and brightest from around the world to invest their talents, skills, and ideas to grow our economy and create American jobs. -Secretary Janet Napolitano, August 2, 2011 Recent Developments: EB-2: DHS - Entrepreneurs may qualify for EB-2 visas if they satisfy existing requirements and may qualify for a National Interest Waiver EB-5: DHS - Immigrant investor visa process streamlined H1-B Visa: DHS - New guidance on employee-employer relationship issued EB-6: Start-up Visa Act legislation pending SelectUSA.gov 27

28 Addressing Policy Concerns 2007 White Paper: Visas and Foreign Direct Investment Inter-Agency Investment Working Group Commerce: Interacts with U.S. firms active in international commerce State: Interacts with foreigners outside the United States DHS: Interacts with foreigners at entry to United States SelectUSA.gov 28

29 Educate Investors Research & Development Tax Credit SBIR Funding Opportunities Renewable Energy Tax Credit DOE Loan Guarantee Program ARPA-E Funding Opportunities Updated Guide Available at Contact SelectUSA with questions SelectUSA.gov 29

30 Provide Guidance to U.S. Economic Development Organizations SelectUSA has the expertise to help EDOs: Develop a data-driven FDI attraction strategy Collaborate within their region Invest in an information-rich website Ensure foreign operations productivity through the use of meaningful metrics Secure organizational funding tied to multi-year performance Explore additional measures, including retention and expansion or company partnerships with local universities 30

31 Thank You Aaron Brickman Deputy Executive Director SelectUSA U.S. Department of Commerce Tel: SelectUSA.gov