Page 4 - Finland and the United States - Partners in Investment, Innovation and Trade

Finnish FDI Benefits American Companies and the U.S. Economy
The United States is among the top destinations for foreign direct investment (FDI) for Finnish companies. The value of FDI stock from Finland in the United States is USD 10.0 billion (UBO, 2015, Bureau of Economic Analysis). Especially in terms of per capita, the amount is substantial. The top sectors attracting Finnish investments in the United States are ICT, mechanical engineering, metals, and chemicals (2016, fDi Markets).
The United States is one of the most important locations for business operations for Finnish companies. There are more than 250 affiliates of Finnish companies operating in the United States. Their combined total turnover is over USD 19 billion, which is the second largest amount for all countries (2015, Statistics Finland).
Finnish-owned companies have a strong focus on R&D&I. Between 2010 and 2015, the Finnish-owned affiliates in the United States spent a total of USD 2.8 billion
on R&D (Bureau of Economic Analysis).
The economic benefits of technology spillovers stimulate increases in the productivity and competitiveness of American companies, creating jobs and growth in the United States.
Finnish-owned companies create jobs in the United States, ranging from manufacturing to research and development. The companies directly employ nearly
35,000 people in the United States (2015, Statistics Finland). When indirectly created jobs are added, the estimated number reaches 70,000 jobs in the country.
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FOREIGN DIRECT INVESTMENT CREATES JOBS IN THE UNITED STATES
According to an estimate by the International Trade Administration (2016), FDI created, both directly and indirectly, 12 million jobs in total in the United States in 2013. This equaled 8.5% of the total U.S. labor force. Around half of the jobs that were created were directly attributable to FDI. The remaining indirect jobs attributable to FDI were for example in sectors that supply goods and services to foreign companies, or related to productivity growth stimulated by the economic benefits of technology spillovers from foreign firms.
Source: Richards J. and Schaefer E. (2016), “Jobs Attributable to Foreign Direct Investment in the United States”, ITA, Office of Trade and Economic Analysis, U.S. Department of Commerce.
Photo: Carnival Corporation