Posts Tagged ‘SelectUSA Tech’

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FDI in High-Tech: Innovation and Growth in The United States

February 5, 2020

Kara Mazachek is an Economic Research Analyst at SelectUSA

Following SelectUSA’s participation in the Consumer Electronics Show (CES), it is the optimal time to look at how foreign direct investment (FDI) in high technology, or high-tech, supports innovation and growth in the United States.

What is high-tech?
SelectUSA defines the high-tech sector as an industry that relies on a skilled and educated workforce, acts as an innovative producer in our economy, and creates and utilizes advanced technologies. Perhaps unsurprisingly, the high-tech sector’s share of workers in science, technology, engineering, and mathematics (STEM) occupations is more than twice that of the national average.

This industry is quite large and growing consistently, according to data from the Bureau of Economic Analysis (BEA). In 2018, high-tech companies contributed $8.3 trillion of economic value in the United States, accounting for nearly 23 percent of U.S. gross domestic product (GDP). Additionally, high-tech companies employ approximately 20 million U.S. workers. The U.S. high-tech industry also continues to grow, especially in fields such as the data processing, hosting, and related services sub-industry, which had a compound annual growth rate (CAGR) of 57.9 percent from 2013 to 2018.

How has FDI impacted the U.S. high-tech sector?
FDI supports the high-tech industry in the United States and helps it thrive. Specifically, the inward position of FDI in the U.S. high-tech sector was $2.0 trillion in 2018. That’s 46 percent of total FDI in the United States! It also steadily continues to grow: the five-year CAGR for FDI in the high-tech sector was 10.1 percent between 2013 and 2018. This growth is faster than the comparable all-industry FDI CAGR average of 9.8 percent.

High-Tech FDI in US for the Feb 5 Blog Post

The United States sees tangible results from high-tech FDI. According to BEA, foreign-owned companies in high-tech industries have steadily increased their annual U.S. research and development (R&D) spending over recent years to $48.7 billion in 2017. High-tech FDI also accounted for $169.5 billion of total U.S. goods exports in 2017. Additionally, foreign-owned U.S. affiliates in the high-tech sector directly supported more than 2.1 million U.S. jobs in 2017.

So, what does this mean for the high-tech sector?
All these data points further confirm that high-tech investment are important drivers of growth for the U.S. economy. As FDI into this sector continues to grow, the United States will see advanced innovation, continue to employ millions of highly skilled and educated workers, and further the competitiveness of our high-tech sector. To maintain success in high-tech and all other sectors, SelectUSA will continue to help global business investors and U.S. economic developers to succeed in the U.S. economy.

To learn more about how SelectUSA supports FDI in all industries, sign up for our email updates and visit SelectUSA.gov for resources such as FDI fact sheets, interactive data tools, and informative reports. You can also read our previous report on FDI in high-tech.

About SelectUSA
Housed within the U.S. Department of Commerce’s International Trade Administration, SelectUSA promotes and facilitates business investment in the United States. To learn more about SelectUSA’s services, the U.S. business and investment climate, and how FDI benefits the U.S. economy, visit selectusa.gov and follow @SelectUSA on Twitter.

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Teaming Up for Tech at the 2019 SelectUSA Investment Summit

April 30, 2019

David Steel is the Executive Vice President of Corporate Affairs for Samsung Electronics America, which is an official sponsor of the SelectUSA Investment Summit.

Samsung marked its 40th year in the United States in 2018, an investment that has been nothing short of essential to our company’s success. Not only was it an accomplishment worth celebrating, but it was also the perfect time to reflect on the importance of the U.S. market and the strong ties we have forged with American industry and consumers over the course of four decades.

Since 1978, Samsung’s U.S. family has grown to 20,000 employees across 46 states. Whether investing in manufacturing facilities in South Carolina, cutting–edge startups in California,or expanding our massive semiconductor operation in Texas, Samsung also realizes that in order to tap the true potential of the U.S. market, we must continue to engage on the ground.

That’s why Samsung is excited to be involved in the inaugural SelectUSA Tech program at the SelectUSA Investment Summit, an initiative that aligns with our vision for high-tech manufacturing to propel the U.S. economy and provide high-quality careers for decades to come. The SelectUSA Techprogram connects our global firm with both American consumers and the innovators working to shape the trends and develop the technology that will spur global demand for our products.

To date, Samsung has invested billions of dollars in the U.S. through advanced manufacturing, R&D, and emerging technologies:

  • Over the last 23 years, Samsung has invested $17 billion in manufacturing and R&D at Samsung Austin Semiconductor (SAS) – one of the largest-ever foreign direct investments in the United States.
  • In 2017, Samsung announced a $380 million investment in a new, state-of-the-art home appliance manufacturing facility in Newberry County, SC.
  • Samsung has invested more than $6.6 billion in U.S.-based companies and start-ups across 30 industry sectors, including IoT, AI, VR/AR, smart machines, digital health, security, cloud, and more.

At the center of Samsung’s investment opportunities is thevision for a connected world and the importance of selecting America as a partner to make this happen–recognizing our cultural ties founded upon partnership and innovation. For instance, the growing need to fill STEM-related jobs with qualified professionals pushes us to constantly invest inprograms that will train and inspire the next generation of tech talent and industry leadership. We constantly work to provide the essential tools and access to our technology to encourage, inspire, and support the people and communities we serve.

Our commitment to investment and growth in the U.S. is stronger than ever. Through partnerships with programs like SelectUSA, we are eager to continue doing our part to drive technology leadership and economic growth in the United States, further strengthening the thriving tech industry.

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