Month: October 2017

Foreign Direct Investment Strengthens America’s High-Tech Competitiveness

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High-Tech Industry Employment Concentration, High-Tech Employment/All Employment, by Metro Area, 2015. Source: U.S. Census Bureau, 2015 County Business Patterns.

By Maureen Book, Research Analyst, SelectUSA
SelectUSA recently released its second industry-focused report: “High-Tech Industries: The Role of FDI in Driving Innovation and Growth.”

This report provides an in-depth look at high-tech clusters in the United States and gives the first-ever analysis of the role of foreign direct investment (FDI) in high-tech industries. The report’s biggest takeaway is that FDI plays a significant role in these industries.

Where Are High-Tech Clusters?

High-tech industries are defined as employing more than twice the concentration of science, technology, engineering and mathematics (STEM) workers compared to the national average. After analyzing the U.S. high-tech industry and considering participation of both foreign and domestic firms, SelectUSA explored the geography of high-tech companies in the United States by state, to identify large groups, or clusters, of employment. The top employers of high-tech workers were California, Texas and New York, while the District of Columbia, Virginia and Washington boast the highest employment per capita of high-tech jobs.

High-Tech Clusters by Metro Area

Looking at metro areas with the highest concentration of high-tech employment, SelectUSA found that San Jose, Calif., tops the list with more than 34 percent of local employment in high-tech industries. It was followed closely by Elkhart, Ind., with nearly 33 percent, and Huntsville, Ala., with over 31 percent.

While the concentration in San Jose might not be surprising because it is the largest city in the Silicon Valley, Elkhart and Huntsville both have industry concentrations nearby to make them important locations for high-tech companies. Elkhart’s economy is heavily concentrated in the transportation equipment manufacturing industry and centers around recreational and commercial vehicle manufacturing. While Huntsville is home to many military technology firms and aerospace and defense contractors.

The Role of Foreign Direct Investment (FDI)
Using our definition of high-tech industries and data published by the Bureau of Economic Analysis, SelectUSA looked at the role that FDI plays in high-tech industries. FDI generally involves not only monetary investment, but the management of a company by a foreign enterprise. To be considered FDI, the investment must usually be linked with the real output of the country in which it operates.

Our data found that FDI stock in high-tech industries reached over $1.6 trillion in 2016 and supported 2.1 million jobs in the United States. In fact, the high-tech component of FDI is quite robust – nearly 44 percent of all FDI in the United States is invested in high-tech industries.

Compensation, R&D, Exports and Value-Added Activities

Beyond employment, FDI in high-tech sectors has other significant contributions to the U.S. economy.

The U.S. affiliates of foreign-owned firms typically offer higher wages compared to domestic firms. In addition, companies engaged in FDI in high-tech industries offer higher average pay compared to FDI companies in other industries – more than $101,000 per worker.

U.S. affiliates of foreign-owned firms in the high-tech sector also spend nearly $42 billion on research and development (R&D). In 2015, they also contributed $154 billion towards U.S. goods exports and more than $373 billion towards value-added activities.

Source Markets Supporting High-Tech
We also find that Germany, the United Kingdom, France, and Japan are among the largest source markets for R&D spending, exports and value-added activities in high-tech industries. Beyond that, they are also the US’s traditional trading partners. Collaborating with them on FDI reinforces our trade relationships and strengthens the US’s bilateral ties with these partners.

MBDA Announces 2017 National MED WEEK Award Winners

The U.S. Department of Commerce’s Minority Business Development Agency (MBDA) today announced the 2017 National Minority Enterprise Development (MED) Week Award winners. This year the Agency honored 15 minority business enterprises (MBEs), businesses leaders and advocates for their leadership, commitment and excellence in advancing the interests and the economic achievements of the minority business community.

For more than 30 years, MBDA has observed National MED Week by convening award winners, key business leaders, influencers, MBEs and advocates during a week-long celebration. MBDA will once again lead the annual observance by hosting special MED Week programming and events during the 2017 National Minority Supplier Development Council Conference and Business Opportunity Exchange (NMSDC) Oct. 22-25 in Detroit.

“MBDA is delighted to celebrate such a prestigious group of innovators, advocates and business leaders for their extraordinary efforts in contributing to the economic success of the minority business community and the U.S economy.Your entrepreneurial spirit symbolizes the best of America. We salute your accomplishments and the many years of hard work that you’ve dedicated to achieving your success,” said MBDA Acting National Director Christopher Garcia.

Since 1983, every U.S. president has issued a Presidential Proclamation designating National Minority Enterprise Development Week to recognize the contributions of the minority business community to the U.S. economy. This year, President Donald J. Trump proclaimed the 2017 National MED Week as Oct. 22-28.

First Lady Melania Trump to Kick Off the “Week of Inclusion” at Michigan Middle School

First Lady Melania Trump and Secretary of Education Betsy DeVos will visit Orchard Lake Middle School in West Bloomfield, Michigan to kick off the “Week of Inclusion,” part of National Bullying Prevention Month.

During her visit, Mrs. Trump will spend time in the school’s Viking Huddle Class, a 6th grade classroom that focuses on social emotional learning. The First Lady and Mrs. DeVos will observe and participate in lessons about respecting others, kindness, and inclusion.

In addition to classroom participation, Mrs. Trump will visit with 7th and 8th grade students in the school’s cafeteria in an effort to bring awareness to “No One Eats Alone,” a concept that seeks to reverse the trends of social isolation by asking students to engage in simple acts of kindness – such as making sure that no one is eating alone and students are making an effort to eat with new classmates and peers.

“As part of my ongoing commitment to the overall well-being of children, I am looking forward to today’s visit,” stated First Lady Melania Trump. “By our own example, we must teach children to be good stewards of the world they will inherit. We need to remember that they are always watching and listening. It is our responsibility to take the lead in teaching children the values of empathy and communication that are at the core of kindness, mindfulness, integrity, and leadership.”