2/20/2015 Minnesota as a Global Destination for Businesses: The Importance of Foreign Direct Investment Kathleen Motzenbecker Executive Director, Minnesota Trade Office, DEED David Griggs Vice President Business Investment & Research, GREATER MSP Laurence Reszetar, Director Foreign Direct Investment, Minnesota Trade Office, DEED What is Foreign Direct Investment (FDI)? Kathleen Motzenbecker Executive Director, Minnesota Trade Office, DEED Definition of FDI 1
2/20/2015 FDI Forms • Greenfield • New Operation • Expanded Operation • Net expansion of employment and investment • Merger or Acquisition • Transfer of majority ownership for foreign firm • Company acquires market knowledge, proprietary technology, access to networks • Alternative Financing • EB-5 (Immigrant Investor Program) • Sovereign Wealth Funds How does Minnesota measure? • 100,000 jobs at foreign owned enterprises (FOEs) • # of locations • FOEs are headquartered in 50 countries • Increased our FDI employment, but our national rank slipped 2
2/20/2015 FDI in Minnesota FDI Covers Minnesota • Sample from a select group of countries • Spread from Warroad and Roseau to Austin and from Moorhead to Winona 3
2/20/2015 Why Do We Need to Act? • Minnesota’s Lagging Indicators • 1/3 of the national average for FDI invested per capita • 1/3 of the regional average for jobs created per million residents • 1/3 of the regional average for amount of FDI as a portion of GDP Why Should We Care and What are We Doing About FDI? David Griggs Laurence Reszetar VP, Business Investment Director, and Research Foreign Direct Investment, GREATER MSP Minnesota Trade Office, DEED 4
2/20/2015 The Minneapolis Saint Paul metro’s sources of FDI are 38% dominated by a few large and established firms. Those 30% firms are still among the In MSP, between 1991 most innovative in the world, and 2011 , 11,337 new Among our peer jobs were added in metros, Indianapolis FOEs with 500+ but Minneapolis Saint Paul and St. Louis are the employees. only other regions to is challenged to translate surpass our high Extra large firms are the growth rate of large fastest growing types of that message to smaller and foreign-owned FOEs in MSP. companies. younger firms. FIRMS WITH 500+ EMPLOYEES, FDI EMPLOYMENT SHARE Shifting Global Economy • Global Economic Growth Patterns • Increased investment in developing countries • Expansion of middle class outside of U.S. • 2012 – FDI to Developing Nations > FDI to Developed Nations • FDI to Developing Countries = 3x FDI to U.S. • Challenges • State is largely unknown • 4 U.S. States are Globally Known • Our Companies are Known • Different Business Languages • Competitive Advantages • Workforce • Diversity and Strength of Industries • More Global than Perceived • Location 5
2/20/2015 • Three New Trade Offices • Invest in Minnesota Funding • Foreign Direct Investment Director TOP SHARED FDI AND EXPORT MARKETS FOR MSP/MINNESOTA Promotion of the State of Minnesota NETHERLANDS What we have learned CANADA GERMANY UK JAPAN WHERE DO FDI & EXPORT MARKETS DIFFER? TOP SOURCE COUNTRIES FOR FDI EMPLOYMENT IN MSP, 2011 TOP MARKETS FOR MINNESOTA EXPORTS, 2013 IRELAND BELGIUM SWITZERLAND SOUTH FRANCE ITALY KOREA CHINA MEXICO PHILLIPINES 6
2/20/2015 Oslo Stockholm GERMANY Berlin | Cologne | Dusseldorf | Hannover CANADA Gotenburg Munich | Rostock | Stuttgart | Tuttlingen Edinburgh Winnipeg | Toronto | Montreal Copenhagen London Toronto Dusseldorf MSP Brussels Harbin Vancouver Munich JAPAN Seoul Beijing Tokyo Rapperswil Xian Shanghai Osaka Riyadh Sao Paulo GREA TER MSP Office Minnesota Trade Office Speak the Language! Honor the Culture Base in Research Promote the Success 7
2/20/2015 New Jobs through Investments In MSP New Jobs through Investments outside MSP What Can We Do Together? • Low Hanging Fruit • Engagement with Existing FOEs • Acquired Companies • Companies Importing/Distributors • Alert MTO • Host Delegations • Identifying Competitive Advantage • Attend Events/Presence • Talk about FDI in Your Communities • Engage with Potential FOEs • MTO Support Tools for Your Community 2015 Regional Buisness Retention & Expansion Conference Event Details and Registration Tuesday, February 10, 2015 9 - 11:30 a.m. • Business Retention and Expansion National Sports Center • Schwans Center Salesforce Database 1700 105th Avenue Northeast Blaine, MN 55449 • Regular Meetings with Stakeholders Yes, I want to attend! Questions? Contact Megan Barnett-Livgard at 651-287-5812 8
2/20/2015 Events/Opportunities • In-bound Delegations • Education • Germany • Japan • MTO • Denmark • USCS • India • Chambers • Israel Minnesota as a Global Destination for Businesses: The Importance of Foreign Direct Investment Thank You! Kathleen Motzenbecker Executive Director, Minnesota Trade Office, DEED David Griggs Vice President Business Investment & Research, GREATER MSP Laurence Reszetar, Director Foreign Direct Investment, Minnesota Trade Office, DEED 9
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