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.”

President Donald J. Trump’s Upcoming Travel to Asia

As was announced on September 29, 2017, President Donald J. Trump will travel to Japan, the Republic of Korea, China, Vietnam, the Philippines, and Hawaii, from November 3-14, 2017. This update provides further details about the President’s itinerary.

The President’s travel will underscore his commitment to longstanding United States alliances and partnerships, and reaffirm United States leadership in promoting a free and open Indo-Pacific region.

On November 3, the President will visit Hawaii and receive a briefing from the U.S. Pacific Command. He will visit Pearl Harbor and the USS ARIZONA Memorial.

The President will commence his visit to Asia beginning with Japan on November 5. While in Japan, President Trump will meet with American and Japanese service members, and participate in bilateral meetings with Prime Minister Shinzo Abe, who will also host the President for a meeting with the families of Japanese citizens abducted by the North Korean regime.

During his visit to the Republic of Korea on November 7, the President will participate in a bilateral meeting with President Moon Jae-in and visit American and South Korean service members. The President will speak at the National Assembly, where he will celebrate the enduring alliance and friendship between the United States and the Republic of Korea, and call on the international community to join together in maximizing pressure on North Korea.

On November 8, President Trump will arrive in Beijing, China for a series of bilateral, commercial, and cultural events, including meetings with President Xi Jinping.

The President will travel to Danang, Vietnam, on November 10. There, he will participate in the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting and deliver a speech at the APEC CEO Summit. In the speech, the President will present the United States’ vision for a free and open Indo-Pacific region and underscore the important role the region plays in advancing America’s economic prosperity. On November 11, the President will travel to Hanoi, Vietnam for an official visit and bilateral engagements with President Tran Dai Quang and other senior Vietnamese leaders.

President Trump will arrive in Manila, Philippines, on November 12 to participate in the Special Gala Celebration Dinner for the 50th Anniversary of the Association of Southeast Asian Nations (ASEAN). On November 13, the President will celebrate the 40th anniversary of U.S.-ASEAN relations at the U.S.-ASEAN Summit and participate in bilateral meetings with President Rodrigo Duterte of the Philippines and other leaders.

Welcoming the Pittsburgh Penguins to the White House

President Donald J. Trump proudly welcomed the 2017 Stanley Cup Champions, the Pittsburgh Penguins, to the East Room of the White House on Tuesday. President Trump entered the cheering room with First Lady Melania Trump and Penguins’ co-owners Ron Burkle and Mario Lemieux.

The scene was a jovial one as the Stanley Cup was brought into the room to an eager audience chanting “let’s go Pens.” The first ever back-to-back Stanley Cup champions followed shortly after to receive the cheers of the crowd as well as the President’s praise. “Do you think you’re going to be back here next year?” President Trump asked. The crowd responded with more cheers.

“While you’re dominant on the ice, the heart of the organization and its commitment to Pittsburgh shines just as brightly off the ice,” the President stated. He continued to highlight the number of great causes that the Pittsburgh Penguins Foundation supports. Over a million dollars in grants were awarded to local charities just last season and their annual food drive provides thousands of pounds of food as well as tens of thousands of dollars to local community food banks. The Pittsburgh Penguins Foundation supports many other efforts to give back to the Pittsburgh community that welcomes their team.

President Trump stated that the Penguins “embody the values of dedication, discipline, and hard work,” while also taking the time to acknowledge those same qualities in the first responders aiding in the aftermath of the Las Vegas shooting, relief efforts following Hurricanes Harvey, Irma, Maria, and Nate, and the battle against fires consuming California’s wine country. “They’ve been incredible,” said the President recognizing their hard work and dedication to their Nation through times of terrible tragedy.

“Just as much as your five Stanley Cup wins, your generosity has shown the true character of this incredible organization,” President Trump told the Penguins. “You are true, true champions and incredible patriots.”