Japan-U.S. Investment Report
Booklet: Japan’s U.S. Investment Dynamic
UNDERSTANDING THE IMPACT MADE BY JAPANESE COMPANIES IN THE U.S. ECONOMY
Japan’s U.S. Investment Dynamic: Reflections on the Economic Contributions Made by Japanese Companies is published to highlight key facts of the significant and growing economic contributions made by Japanese companies to the U.S. in terms of capital investment, employment, increased U.S. merchandise exports, and R&D spending. It is our hope that this booklet will deepen your understanding of Japan’s commitment to the U.S. economy.
KEY FINDINGS OF THE JAPAN-U.S. INVESTMENT DYNAMIC
JAPAN: THE #1 FOREIGN DIRECT INVESTOR IN THE U.S. ECONOMY
Japanese total direct investment in the U.S. reached a record level of $679 billion in 2020.
Since 2009, Japan’s direct investment in the U.S. economy increased by 182.8% to $679 billion. In comparison; Canada’s direct investment in the U.S. was $570 billion; followed by Germany $564 billion; the United Kingdom $481 billion; and China $55 billion.
JAPAN: THE #1 FOREIGN EMPLOYER IN U.S. MANUFACTURING
In 2019, U.S. based manufacturing operations of Japanese companies employed over 500,000 Americans, a record level among all foreign investors.
From 2010 to 2019, the number of Japanese companies’ U.S. based manufacturing employees increased by 82.3%, a gain of 238,100 jobs.
JAPANESE COMPANIES: VALUABLE CONTRIBUTORS TO U.S. MERCHANDISE EXPORTS
U.S. Merchandise Exports: U.S. based Japanese companies sustained a high level of exports - $82.3 billion in 2019 - which is the largest amount among investor countries.
This $82.3 billion in merchandise exports accounts for 5.0% of total U.S. exports, which are 20.7% of all exports from the U.S. by foreign firms.
JAPAN RANKS #1 IN R&D EXPENDITURES AMONG FOREIGN INVESTORS IN THE U.S., SPENDING $12.9 BILLION IN 2019.
Japan's R&D spending reaches a record level of $12.9 billion (2019) in R&D capital deployment in the United States.
R&D activities are important for all Japanese companies because they constantly need to innovate new products and services to remain globally competitive, which simultaneously adds to overall American industrial competitiveness.
For the full report, please CLICK HERE (PDF, 5713KB)
Video: Japan’s U.S. Investment Dynamic
This video features interviews with local government leaders who provide their perspective on the key role Japanese companies play in their local economies:
- - Mayor Jim Lienhoop, City of Columbus (IN)
- Deanna Kuennen, Community and Economic Development Director, City of Faribault (MN)
- Deborah Scherer, Managing Director, Global Trade and Investment at One Columbus (OH)