Direct investment in the United States by foreign firms contributes to productivity growth, provides a source of financing for the current account deficit, and generates high-paying jobs for American workers. U.S. subsidiaries of foreign companies employ 5.1 million American workers in jobs that pay 32 percent higher wages than the national average. In 2005, U.S. subsidiaries reinvested $59 billion of their profits back into our economy and spent $29.9 billion on research and development in the United States. Engagement in the global economy through increased trade and investment has led to a significant rise in living standards in the United States.

The U.S. has historically been the most attractive destination in the world for foreign direct investment (FDI), but that leadership position can no longer be taken for granted. China and the U.K. each attracted more FDI in 2003 and 2005, respectively, although the U.S. regained its lead position in 2006. Overall, the U.S. share of FDI has declined from 22% of global FDI in 1980, to 16% in 2005.
The United States has always provided foreign investors a stable and welcoming market. The American workforce is the best educated, most productive, and most innovative in the world. As a place to do business, the U.S. offers a predictable and transparent legal system, low taxes, outstanding infrastructure, and access to the world’s most lucrative consumer market.

Through the Invest in America initiative, the Department of Commerce’s International Trade Administration (ITA) promotes the United States as the best market for investment in the world. ITA’s global resources provide the platform to educate international investors on the advantages that come with investing in the United States. Our goal is to ensure that the U.S. remains the primary world market for inward investment.

The Invest in America initiative will work with state and local officials to develop a supportive message that complements all the states’ efforts to create jobs and economic growth through inward investment. Efforts will focus on outreach to foreign governments and investors, outreach to state and local governments, and addressing business climate concerns.