Investing in the US: The Three Major Players
T
he United States has been the world’s prime loca on for international investment for quite some me now. Known as the most innova ve economy in the world, the US con nues to a ract the best and the brightest from around the world.
It leads the way in many different areas: technology, business model transforma ons, and policy developments, biopharmaceu cal firms, R&D, universi es, ba ery revolu on… As Mike Kerr once said, “I think the technologies of the future, the industries of the future, are more likely to come out of the United States than anywhere else in the world.“ And numbers show that investors from all over the world are interested. International companies invested $4,025.5 billion in the US economy in 2017, and Europe made up more than 60% of that investment. Corpora ons see investment as an alterna ve to expor ng, and where
be er than the US, in terms of sheer size, sustainability, and scope. In light of Europe’s long standing role as a top investor in the US, more and more European companies are looking to make a move. There are various factors and as we know it’s a good place to do business, and this year’s Foreign Direct Investment Confidence Index proved it once again, as the US managed to stay at its very top for the 7th year in a row. The main reasons why foreign investors like to do business here are a business-friendly regulatory environment, skilled workforce, technological capabili es, and a large domes c market. Recovering from the shock of vo ng in Trump, the na on’s resilience and entrepreneurial spirit in the face of adversity are providing unparalleled opportuni es for driven companies and investors.
Global investors are taking note, ac vely looking to the US as a set-up location, permanent base, and a growth market. Looking at the numbers more closely, the major sources of FDI in the US are the UK, Canada, and Japan. Interestingly, Japan is considered a major new leading investor, as it announced its inten ons to invest $10 billion in the US in the next 5 years albeit back in 2015. Investment is intrinsically linked to innova on, so when choosing a host loca on the density of tech companies, the share of professionals in STEM fields, R&D spending per capita and the speed of the internet are significant measurable quali es. According to the 2018 Global Innovaon Index, the US lands in sixth place. Experts note that the US s ll holds the top rank in many important indicators, including R&D companies expenditures, venture capital deals, business environment, knowledge impact, and others. europeanbusinessmagazine.com
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