Foreign direct investment to developing countries has shrunk to its lowest level since 2005, with just $435 billion in FDI being distributed in 2023.

Fact of the Week: FDI to Developing Nations Has Dropped to Its Lowest Level Since 2005

The United States deepened its receipts of inward FDI by more than 114 percent in a single year, reporting $323 billion in 2021 and maintaining its position as the largest host economy of foreign investment.

Fact of the Week: Foreign Direct Investment Flowing Into the United States More Than Doubled in 2021

In terms of purchasing power parity, U.S. per capita GDP has grown from 31 percent above the EU to 34 percent above it. About 72 percent of this gap can be attributed to differences in productivity, while just 28 percent is due to the difference in hours worked by Americans and Europeans.

Fact of the Week: 72 Percent of the Per Capita GDP Gap Between the US and the EU Is Explained by Lower Productivity

Businesses in the European Union were investing 57 percent as much in R&D as their U.S. counterparts as of 2013, writes John Wu in Innovation Files.

Innovation Fact of the Week: EU Private Sector R&D Investment is 57% of U.S. Level

Between 2022 and 2023, R&D investment in Organization for Economic Cooperation and Development (OECD) nations grew by 2.4 percent, a slowdown from the 3.6 percent growth the previous year.

Fact of the Week: R&D Investment Is Slowing in OECD Countries, From 3.6 Percent to 2.4 Percent

Foreign direct investment directly supports 6.1 million jobs which in turn support 2.4 million more jobs indirectly—for a combined total of 8.5 million American jobs, or just above 7 percent of private sector employment, writes John Wu in Innovation Files.

Fact of the Week: Foreign Direct Investment Supports 8.5 Million U.S. Jobs

When firms invest outward into foreign countries, they are deepening global value chains and growing markets overseas. This growth translates into increased sales and performance for the investing firms, which can expect a positive impact on their domestic activities.

Fact of the Week: Outward Foreign Direct Investment Creates Domestic Jobs

Businesses in the European Union lag U.S. businesses not just in the amount they invest in R&D, but also in their capabilities to transform these investments into productivity gains, writes John Wu in Innovation Files.

Fact of the Week: U.S. High-Tech Firms Gain Two-And-A-Half Times More Productivity Than European High-Tech Firms From The Same Level Of R&D Investment

EU regulations, many have cost European businesses about $176 billion annually, equivalent to almost 1 percent of the bloc’s GDP, and this cost doesn’t include the lost innovation and forgone growth that may have occurred if those rules were not in place.

Fact of the Week: FDI to the Western Balkans Reached 6.4 Percent of GDP Between 2020 and 2023, Quadruple the EU Average

Related

Fact of the Week: FDI to Developing Nations Has Dropped to Its Lowest Level Since 2005

Fact of the Week: Foreign Direct Investment Flowing Into the United States More Than Doubled in 2021

Fact of the Week: 72 Percent of the Per Capita GDP Gap Between the US and the EU Is Explained by Lower Productivity