Foreign direct investment (FDI) plays a major role in the U.S. economy, both as a key driver of the economy and an important source of innovation, exports and jobs. The United States has always provided foreign investors a stable and welcoming market. As a place to do business, the United States offers a predictable and transparent legal system, low taxes, outstanding infrastructure, and access to the world’s most lucrative consumer market.

Invest in America is the primary U.S. Government mechanism to manage foreign direct investment promotion. Efforts are focused on outreach to foreign governments and investors, support for state governments’ investment promotion efforts, and addressing business climate concerns by serving as ombudsman in Washington for the international investment community.

USA Profile

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 workforce 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 include:

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 systems of regulation and taxation in the United States give foreign investors unparalleled operational freedom. Furthermore, 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 countries. Since 2000, 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 an unparalleled investment climate. Our markets are open to products, ideas, and above all, innovation. Among Business Week’s Top 100 Information Technology companies, 45 are U.S. firms. In its 2006 Global Competitiveness Index, the WEF ranked the United States first for innovation, market efficiency, higher education and training, and business sophistication.

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 173,000 patents granted by the U.S. Patent Office in 2006, almost 50 percent of the applications originated from a foreign country.

Education: Six of the top ten 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 500,000 international students - about a quarter of all international students worldwide - were enrolled in American institutions in 2004. Many community colleges have tailored training programs to investors who locate facilities in their area. In addition to the massive number of Americans with post-secondary degrees, the federal government spent an estimated $23 billion on workforce training in 2005, and state governments spent billions more.

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

Transportation/Infrastructure: Of the top ten world economies, the United States has the largest roadway system, railway network, number of airports, and quantity of Internet hosts. Five of the top ten 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 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. The United States is committed to affording foreign investors fair and equitable treatment.