Why is Foreign Direct Investment Important for Northeast Ohio?
NEOTEC has recognized the need to focus on foreign direct investment (FDI) as a way to ensure Northeast Ohio's success in today's global economy. As part of its Global Business Development Initiative, NEOTEC has identified the following guiding principles:
- Northeast Ohio needs a direct, concentrated effort for regional integration into the global economy.
- Development of a global network is necessary to elevate the profile of the region.
- Foreign Direct Investment is rebounding after the September 2001 downturn.
- Due to the reduction in trade barriers and the value of the dollar, there are increasing opportunities for export sales for Northeast Ohio companies.
- Foreign US subsidiaries contribute 20% of all US exports.
- Foreign US subsidiaries pay an average of 25% more in wages than US companies, which is an important economic development measurement.
- Growing opportunities for success exist in export development.
- Greenfield projects account for 40% of all cross-border investment.
- Globally, there are $2 billion greenfield projects a day, accounting for the creation of nearly 15,000 jobs a day.
- The U.S. Foreign-Trade Zone location is a natural fit for foreign companies wanting to expand operations to the U.S. Northeast Ohio has two very successful Foreign-Trade Zone programs: FTZ 181 and FTZ 40, with multiple locations.