USA: Open for Business

The United States welcomes foreign direct investment (FDI) and is the most important, dynamic economy in the world. Furthermore, the United States recognizes FDI’s positive impact on economic growth and job creation. U.S. affiliates of foreign companies employ over five million U.S. workers and support millions more indirectly.

There is no question that investing in the United States brings with it many advantages. With more than 300 million people and the largest economy in the world, the United States is the most important market for any global company. The American work force ranks as one of the best-educated, most productive, and most innovative in the world. As a place to do business, the United States offers a predictable and transparent legal system, outstanding infrastructure, and access to the world’s most lucrative consumer market. More specifically, some of the advantages of investing in the United States are as follows:

Economy: The United States has the largest and most technologically advanced economy in the world, with a per capita GDP of approximately $45,000. The U.S. systems of regulation and taxation give foreign investors unparalleled operational freedom. In addition, the United States consistently ranks at or near the top of most major indicators of an attractive business and investment climate. The United States is the most consistently competitive, innovative, and open economy in the world. In its 2006 Business Competitiveness Index, the World Economic Forum (WEF) ranked the United States first, looking at business environment conditions and sustainability of national prosperity.

Consumer Market: One reason global companies invest in the United States is to be closer to their suppliers and customers in a dynamic market. The United States accounts for 42 percent of the global consumer goods market, with a per capita disposable income of approximately $32,000. In addition, the United States maintains free-trade agreements with 14 partner countries, giving foreign investors in the United States access to diverse markets around the world.

Research and Development: The United States is a center for global innovation. In 2006, the United States was responsible for 45 percent of total research and development expenditures within OECD (Organization for Economic Cooperation and Development) countries. Since 1990, the United States has been home to more Nobel Laureates in the sciences than all other countries combined.

Technology: American companies are leaders in technological advances and innovation. Foreign investors invest in the United States for greater risk-adjusted return on investment in a superb investment climate. Our markets are open to products, ideas, and — above all — innovation. Among Business Week’s Top 100 Information Technology companies, 33 are U.S. firms. Additionally, in its 2007–2008 Global Competitiveness Index, the WEF ranked the United States first overall and first for innovation and labor market efficiency.

Intellectual Property Protections: The world comes to the United States to invest in research and development and to commercialize the results of their creativity. The United States provides a strong regime of intellectual property rights protection and enforcement. Of the 158,000 patents granted by the U.S. Patent Office in 2007, almost 50 percent of the applications originated from a foreign country.

Education: Six of the top-10 universities in the world are in the United States, according to The Times Higher Education Supplement. There are more than 4,000 universities and colleges in the United States. Over 56 million Americans have obtained a Bachelor’s degree or higher. In addition, more than 580,000 international students — more than a quarter of all international students worldwide — were enrolled in American institutions in 2006. The federal government spent an estimated $23 billion on work force training in 2005, and state governments spent billions more. In addition, many community colleges have tailored training programs to investors who locate facilities in their areas.

Productive Work Force: Investors in the United States gain access to a highly productive and adaptable work force. Since 2000, U.S. business productivity has risen at an average annual rate of approximately 3.2 percent. On average, from 1992–2006, American labor productivity in manufacturing has grown faster than labor productivity in any other country in the G-7.

Transportation/Infrastructure: Of the top-10 world economies, the United States has the largest roadway system, railway network, number of airports, and quantity of Internet hosts. Five of the top-10 airports as measured by air cargo volume are in the United States, including the busiest cargo airport in the world. The United States is also home to some of the world’s busiest international bulk-cargo and container-handling ports.

Hospitable Society: The United States is a friendly and hospitable country, where many foreigners live and invest. As a nation of immigrants, the United States boasts some of the largest cultural diasporas in the world.

In March 2007, the U.S. Department of Commerce launched Invest in America to promote and support foreign investment in the United States. For the first time in a generation, the federal government is actively engaged in promotion of foreign direct investment in the United States.

As Invest in America endeavors to strengthen the U.S. investment climate, it also promotes the United States as great place to do business. Invest in America reaches out to foreign governments and investors, addresses business climate concerns in the United States, and complements state and local efforts to attract foreign investment.

Investing in the United States is straightforward. Unlike some countries, the United States does not maintain a screening body for foreign investments. Investments are only reviewed under limited circumstances involving national security. With few exceptions, foreign companies enjoy the same treatment as domestic companies in the United States.

More specifically, Invest in America welcomes all inquiries and can serve as a foreign investor’s first point of contact for an investment in the United States. Invest in America is part of the Commerce Department’s International Trade Administration (ITA), which maintains a global network in 80 countries. Initial investor outreach may result in gaining information about the U.S. economy as a whole or about U.S. policies and basic investment procedures, as well as making contacts with appropriate federal agencies.

Invest in America also provides potential investors an investment contact list encompassing the 50 states, the District of Columbia, and U.S. territories. This guide provides the name of the individual designated by each governor to field international investment inquiries.

Individual state governments manage investment transition details and can provide individualized services to potential foreign investors. States compete for investments on a global scale, employing highly skilled investment officials and maintaining field offices in major business centers throughout the world. This decentralized system provides foreign investors the individualized attention they need.

Capital goes where it is well-treated. In addition to helping foreign investors locate in the United States, Invest in America addresses business climate concerns raised by the international investment community. Invest in America works across various agencies to act as a voice within the federal bureaucracy to ensure the United States remains the premier location for foreign direct investment. Through its ombudsman role, Invest in America also supports potential and current foreign investors with regard to difficulties encountered within the federal bureaucracy.

Potential foreign investors are invited to contact Invest in America by visiting www.investamerica.gov, calling +1 202-482-5199, or e-mailing info@investamerica.gov. In addition, foreign investors can explore possible contacts in their own country through ITA’s global network by visiting www.buyusa.gov/home/worldwide_us.html.