How Foreign Investment Is Boosting U.S. Manufacturing.

Foreign direct investment (FDI) is playing a significant role in boosting manufacturing in the United States. New research shows that foreign-owned factories tend to be more productive, higher paying, and more technologically advanced than their domestic counterparts. This is because the companies that can afford to invest in FDI projects in the US are often among the highest performers and most competitive in their industries. The presence of these foreign-owned factories also has positive spillover effects on domestic factories, leading to higher wages and additional revenues for workers and firms in the region. However, there is a risk that foreign-owned parent companies may choose to keep high-value production and research and development near their headquarters, limiting the benefits for the receiving region. To maximize the benefits of FDI, it is important for American manufacturers to learn from top performers from abroad and invest in the broader industrial ecosystem, including workforce development and knowledge sharing with other firms. [Extracted from the article]