Booklet: Japan’s U.S. Investment Dynamic

Understanding the Impact of Japanese Companies on the U.S. Economy

(Updated on March 2023)

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

1. JAPAN'S DIRECT INVESTMENT IN THE UNITED STATES WAS THE LARGEST AMONG ALL INVESTOR COUNTRIES IN 2021

The U.S. Department of Commerce reports that foreign direct investment (FDI) has increased 104% over the past 10 years, and Japan has emerged as the number one major source of foreign investment in the United States. The amount of Japan’s direct investment to the United States reached a record level of $721 billion in 2021, three times greater than 2009.

2. JAPAN'S DIRECT INVESTMENT: IMPACTING STATES ACROSS THE UNITED STATES

In 2020, Japan ranked in the top 3 in all 50 states for the number of companies among all foreign investor countries. In fact, Japan was the #1 foreign investors in 39 U.S. states.

3. JAPAN CONTINUES AS THE #1 FOREIGN EMPLOYER IN THE U.S. MANUFACTURING SECTOR

In 2020, a record number of 931,900 Americans were employed by Japanese companies in all sectors of the U.S. economy of which more than half are employed in manufacturing. The 534,100 Americans employed by Japan’s investment in U.S. manufacturing was an increase of 84.6% since 2010, or 244,700 more employees.

4. JAPANESE COMPANIES CONTINUE TO BE THE #1 CONTRIBUTORS TO U.S. MERCHANDISE EXPORTS

The $75.3 billion in merchandise exports by Japanese companies is 21.7% of all exports from foreign affiliated companies in the United States, or 5.3% of total U.S. merchandise exports in 2020.

5. CHARACTERIZED BY INNOVATION AND CREATIVITY, THE U.S. ECONOMY IS A R&D PLATFORM FOR JAPANESE COMPANIES

Japan’s deployment in the U.S. R&D sector reached a record level of $12 billion in 2020. Since 2009, R&D expenditures by Japanese companies in the United States increased by 134.5% or by $6.9 billion. Direct investment from Japan continues to show a strong upward trend in R&D spending in the U.S.

6. COMPARISON OF TOP U.S. FOREIGN INVESTORS

FULL REPORT

For the full report, please CLICK HERE (PDF, 2.04MB) 

Additional reading:
FY2022 JETRO Survey on Business Conditions for Japanese Companies Operating Overseas (North America)

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)