Consultants Forum | FacilityLocations

| FastFacility

| Advertise | Subscribe | Newsletter | RSS

Area Development

Area Development Homepage >> Location USA >>

United States Inward Investing Guide

Location USA is a guide for international companies looking to invest or establish operations within the United States. Location USA provides practical advice and guidance about facilities deployment, labor force skills, taxes and incentives, and more. For specific information on all 50 states, utilize the State Resources links.

USA: Open for Business

Foreign investors are encouraged to invest in the United States - the world's most important global market.

Aaron Brickman, Director, Invest in America, United States Department of Commerce (Location USA 2010)

The United States - the world's largest and most dynamic economy - welcomes foreign direct investment (FDI). Furthermore, the United States recognizes FDI's positive impact on economic growth and job creation. U.S. affiliates of foreign companies employ more than 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 a population of more than 300 million 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.
The U.S. government is committed to pursuing economic growth, as is evidenced by the American Recovery and Reinvestment Act of 2009 (ARRA) passed by Congress in February 2009. ARRA created several new government incentive programs to boost economic growth. U.S. subsidiaries of foreign-owned firms are welcome to participate in these programs alongside U.S. companies. This policy of equal treatment further burnishes America's reputation for openness to foreign investment.

Advantages of Investing in the United States
Additional advantages that foreign companies reap when investing in the Unites States include:

Economy: The United States has the largest and most technologically advanced economy in the world, with a per capita Gross Domestic Product (GDP) of approximately $48,000. 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.

Consumer Market: Global companies operate in the United States to be closer to their suppliers and customers in a dynamic market. The United States accounted for 42 percent of the global consumer goods market in 2007. U.S. citizens have a per capita disposable income of approximately $35,000. In addition, the United States maintains free-trade agreements with 17 partner countries that have a combined GDP of approximately $5.1 trillion, giving foreign investors in the United States unparalleled access to diverse markets.

Research and Development: The United States is the center for global innovation and ranks first for venture capital availability. The nation is responsible for 40 percent of total research and development expenditures worldwide. Furthermore, the United States employs nearly three-fourths of the living Nobel laureates, publishes more than 60 percent of the world's "highly cited publications," and is responsible for nearly 40 percent of the "patented new technology" created within the OECD.

Technology: American companies are leaders in technological advances and innovation. U.S. markets are open to products, ideas, and - above all - innovation. Among BusinessWeek's Top 100 Information Technology companies, 44 are U.S. firms. The Economist ranked the United States as the most e-ready country in the world in 2008. In the 2008-2009 Global Competitiveness Index, the World Economic Forum ranked the United States first for innovation, labor market efficiency, and sophistication of business operations/strategy.

Intellectual Property Rights Protections: Investors from around the world come 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 167,000 patents granted by the U.S. Patent Office in 2009, just over 50 percent of the applications originated in a foreign country.

Education: Six of the top 10 universities and five of the best full-time MBA programs in the world are in the United States. There are more than 4,000 universities and colleges in the United States. Furthermore, more than 671,000 international students were enrolled in American institutions in the 2008-2009 academic year. Many community colleges have tailored training programs to investors who locate facilities in their area. Federal, state, and local governments also spend billions of dollars on work-force training each year.

Productive Work Force: Investors in the United States gain access to a highly productive and adaptable work force. The United States leads the world in labor productivity per person employed, valued at $63,885 per year. According to the International Labor Organization, the "productivity gap between the United States and most other developed economies continues to widen."

Transportation/Infrastructure: The United States has the largest paved roadway system, railway network, and number of airports in the world. Three of the top-10 airports 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 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.

Invest in America
In March 2007, the U.S. Department of Commerce created Invest in America to promote and support foreign 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 reviewed only under limited circumstances, where national security may be involved. 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 77 countries and works to improve the global business environment and helps U.S. firms to compete and win both at home and abroad. Initial investor outreach may result in gaining information about the United States economy as a whole, making contacts with appropriate federal agencies, or describing U.S. policies and basic investment procedures.
Invest in America provides potential investors an investment contact list encompassing the 50 states, the District of Columbia, and U.S. territories. This guide provides a person designated by each state's governor to field international investment inquiries.
Individual state governments manage investment transaction 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.
Invest in America also maintains a list of federal incentives and programs available to investors, both foreign and domestic. This document includes information regarding program guidelines, points of contact, and additional information about the agencies offering the programs. It is regularly updated by Invest in America staff.
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.

Save/Share Article

About the Author

Aaron Brickman, Director, Invest in America, United States Department of Commerce

More articles by Aaron Brickman

ASK AREA DEVELOPMENT

Have questions, comments or concerns about this article? Submit to Ask Area Development here and the author or an expert from our network of site selection and facility planning professionals will answer:

Privacy policy / GuidelinesArea Development will select a number of questions to answer each week. An Area Development representative will contact the submitting reader directly with feedback. Additionally, all submissions are eligible to appear online or in our print publication. If your question is selected for publication we will include and publish your first name, job title and industry only. The full identity of the submitting reader will not appear in published format.Area Development will not publish, share with any third parties, or use for marketing purposes any personal information submitted here without the express consent of the submitting reader.

News Items

Around The Web

Studies/Research

News Items

Around The Web

Studies/Research

Austrian-based Diamond Aircraft Industries Plans Partnership With Embry-Riddle Aeronautical University In Daytona Beach, Florida

State Resource map

Click on any state for links to current state news and data, contact directory, corporate taxes, financial and business incentives, credits, grants and available buildings and sites

State Resource Sponsor

United States Inward Investment Location Profiles

ARIZONA

Arizona - A Great Place For Business

Arizona is one of the fastest-growing, most dynamic economies in the United States. Both Fortune 500 and start-up technology companies call Arizona home, reaping the advantages of a competitive business climate and tax structure; a skilled, knowledge based work force; and world-class innovation, cultural, and scenic resources.

ARKANSAS

Your Success Story Starts In Arkansas

Arkansas's transportation network and central U.S. location define the state as a strategic distribution center. Midway between Mexico City and Montreal, Arkansas offers a valuable distribution advantage.

Little Rock, Arkansas: A Globally Recognized Brand

For two years in a row, the Little Rock region has been named "America's Fourth Strongest Economy" by the Brookings Institution's MetroMonitor. The Wall Street Journal calls it the nation's "Sixth Best Real Estate Market," while Forbes says it is America's "Seventh Best Place for Jobs."

KANSAS

Wichita, Kansas USA - Site of Choice for Advanced Manufacturing Enterprises

Wichita, better known as the Air Capital of the World, has also been ranked #1 U.S. metro for aviation manufacturing. Wichita has the highest concentration of aircraft and aircraft parts manufacturing employment (skills) in the United States.

KENTUCKY

Kentucky Is a Global Business Center

Kentucky remains a leader in attracting foreign direct investment, with nearly 35 percent of announced new investment in 2012 due to FDI activity. Today, about 420 foreign-owned firms from 30 nations employ nearly 80,000 people in the state.

NEW YORK

Think New York for Business Opportunity

When you hear "New York" you probably think of tall buildings and Wall Street — not cows, pastures, and a state whose leading industry is agriculture. In fact, we have both, and the world is taking notice of the abundant milk supply, sophisticated transportation system, and oneday access to almost 100,000,000 consumers.

OHIO

The Columbus Region Grows Increasingly Global Each Year

The Columbus Region is a thriving 11-county area located in Central Ohio. Home to 15 Fortune 1000 headquarters, with two million people and a population growth rate of 1.3 percent annually, the Columbus Region is one of the fastestgrowing major metropolitan areas in the Midwest, and is growing more and more global each year.

The New Ohio — A Leader in New Job Creation

Profitable. Diverse. Motivated. Strategic. Global. These are the words that describe the new Ohio and make us a leader in new job creation in the U.S.

OKLAHOMA

Tulsa - Where Business Grows

Home to more than 950,000, Tulsa, Oklahoma, perfectly balances convenience and affordability with the advantages of a highly skilled work force, a central location, a pro-business atmosphere, and an excellent quality of life. It is a dynamic, growing region that offers the fifth-lowest cost for doing business in the nation and is home to some of the nation's largest companies. These assets combine to make an ideal home for progressive companies competing in a global economy.

TENNESSEE

Select Tennessee for Your Next Investment

Tennessee's ideal location, strong transportation infrastructure, low costs of doing business, and high quality work force provide an attractive setting for investments from around the globe. With most major U.S. markets within a day's drive, Tennessee provides immediate access to eight interstate highways, an extensive network of railways and waterways, and the world's second-busiest freight airport in Memphis.

WEST VIRGINIA

Plastics - West Virginia's Multi-Billion Dollar Industry

Offering one of the highest concentrations of hightech, specialty, and engineering polymer production in the world; an abundance of necessary raw materials; a knowledgeable, highly trained and productive work force; and established transportation systems; it is no wonder West Virginia is home to a vibrant and growing plastics industry.

site selection tools