Resources & Opportunities
When Considering the U.S.
Market
Joanne Vliet
Director
Silicon Valley U.S. Export Assistance Center
U.S. Commercial Service – San Jose
Resources & Opportunities When
Considering the U.S. Market
• Overview of foreign direct investment in
the U.S.
• Clean tech opportunities/resources in the
U.S.
• Overview of Silicon Valley ecosystem and
leading industries
• Resources available to companies
considering investment in the U.S.
2
FDI in the U.S. Economy
5.5 million
U.S. Affiliates of Foreign Firms
Generate 19% of U.S. Exports
($204 billion in 2007)
$40 billion
$55 billion
$404 billion
Source: Department of Commerce, Bureau of Economic Analysis
3
FDI in the U.S. – Industry Perspective
Industry Breakdown of FDI Position
in the United States, 2009
Top 10 FDI Growth Sectors in the United States
(CAGR in FDI position between 2005 and 2009)
1. Miscellaneous Store Retailers
94%
89%
3. Copper, nickel, lead, and zinc ores 73%
73%
4. Computers and Peripheral
Equipment
5. Beverage and Tobacco Products 66%
2. Educational Services
6. Petroleum refining
56%
7. Communications Equipment
52%
8. Steel products from purchased
steel
42%
9. Oil and gas extraction
39%
10. Travel arrangement and
reservations services
37%
Source: BEA
4
U.S. FDI Trends
Top 10 FDI Positions in the United States, 2009
20%| $453.9b
9% | $218.1b
6% | $127.8b
10% | $225.8b
11% | $264.2b
10% | $238b
8% | $189.4b
8% | $189.3b
2% | $43.9b
2%|$45.7b
Note: Numbers denote percentage of the global investment position in the United States
5
European FDI in Perspective
2009 European Investment
Positions in the United States
Average Annual Growth Rate of European
FDI Positions in the United States
2005 - 2009
Source: BEA
6
Swedish FDI in the United States
Recent Greenfield Investment Announcements:
Sept/Oct 2010: Hennes & Mauritz (H&M) announced plans to invest
an estimated $4.4 million in a project in California, creating about
30jobs in the retail sector. Glo AB announces $25 million investment
round and establishment of engineering center in California.
August 2010: Svenska Cellulosa Aktiebolaget (SCA) announced
plans to invest $50 million to expand an existing production
facility in Kentucky, creating an estimated 65 jobs in the paper
sanitary products manufacturing sector.
July 2010: Volvo announced plans to invest about $30 million in
a project in Pennsylvania, creating an estimated 135 jobs in the
industrial equipment manufacturing sector.
June 2010: Camfil Farr announced plans to invest $5.5 million
in projects in California, Nebraska, North Carolina, Ohio
and Texas creating 23 jobs in the industrial equipment sector.
May 2010: Saab AB announced plans to invest almost $20 million in a
project in Michigan, creating 100 jobs in the aerospace sector.
Source: fDi Markets
7
Western European Greenfield FDI Announcements
in U.S. Green Energy Sector
South America, 1
FDI Projects in U.S. Alternative/Renewable
Energy Sector, 2003-2009
North America,
8
Belgium, 1
Denmark, 2
Middle East, 1
Eastern Europe,
1
France, 12
Switzerland, 1
Asia-Pacific, 21
United
Kingdom, 24
Western Europe,
100
Germany, 18
Sweden, 1
Spain, 19
Ireland, 3
Italy, 3
Source: fDi Markets
Portugal, 10
Norway, 1
Netherlands, 5
8
FDI in U.S. Green Energy Sector
Annual Number of
Greenfield Investment
Projects in U.S.
Renewable Energy
Sector
Western European FDI
in U.S. Renewable
Energy Sector
45
40
35
30
Asian-Pacific FDI in
U.S. Renewable
Energy Sector
25
20
15
10
5
0
2003 2004 2005 2006 2007 2008 2009
Source: fDi Markets
9
President Obama Tours a Foreign Company’s Renewable
Energy Manufacturing Facility in Iowa
“. . [J]ust a few short years ago, this
facility was dark, it was quiet, nothing
was going on. And today, it’s alive and
humming with more than 600
employees
. . .So in the midst of the economic
turmoil, the Recovery Act helped make
it possible for America to install nearly
10 gigawatts of new wind-generating
capacity last year alone -– and that's
enough to power more than 2.4 million
American homes. So when people ask
you what was the Recovery Act about,
what was the stimulus about, it was
about this -- this plant.”
Source: Official White House Photo by Lawrence Jackson
-President Barack Obama
Siemens Wind Turbine Blade Manufacturing Plant
Fort Madison, Iowa., April 27, 2010
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Companies Benefiting from Clean-Energy
Manufacturing Tax Incentives
Novozymes Blair, Inc. (biomass) will receive $28 million in credits for a
new facility in Nebraska.
AAF-McQuay, Inc. (air conditioning manufacturer), owned by Daikin
Industries, to receive $2.7 million in credits in Missouri, Minnesota, Virginia.
Alstom (energy & infrastructure) to receive $65 million in credits in
Tennessee and Texas for nuclear and wind turbine component production.
Hemlock Semiconductor Corp., a joint-venture with Dow Corning and
two Japanese companies, will receive $141.8 million in credits in Michigan.
Siemens Energy Inc. (wind blades) will receive $7.7 million in tax credits
for operations in Iowa and Texas.
Yingli Green Energy Americas will receive $4.5 million in credits to
open a manufacturing facility to produce solar energy modules in Arizona.
Source: White House (January 8, 2010)
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U.S. Renewable Energy Sources
Source: U.S. Department of Energy Annual Energy Review 2009
12
U.S. Solar Photovoltaic Resource Map
Source: U.S. Department of Energy National Renewable Energy Laboratory
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U.S. Biomass Resource Map
Source: U.S. Department of Energy National Renewable Energy Laboratory
14
U.S. Wind Resource Map
Source: U.S. Department of Energy National Renewable Energy Laboratory
15
2009 U.S. Wind Power Projects
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
U.S. Geothermal Resource Map
Source: U.S. Department of Energy National Renewable Energy Laboratory
17
Silicon Valley
U.S. Export Assistance Center
Service Area
The Silicon Valley Region:
• Total area—1,854 square miles
• Total population—2.52 million (greater than 18
US states)
• Total jobs—1,412,372 million
• Ethnic composition—40% White, 25% Hispanic,
28% Asian/Pacific Islander, 3% African
American
• Foreign born—36% of residents were born in a
foreign country
• Origin: 57% Asia, 32% Americas, 9% Europe, 1%
Oceana, 1% Africa
• Age distribution—0–9 years old:15%; 10–19:
13%; 20–44: 38%; 45–64: 22%; 65+: 11%
• Adult educational attainment—86% at least high
school graduate; 44% at least bachelor’s degree
*Data do not include Monterey Bay region
Silicon Valley Major Areas of
Economic Activity & Employment
• Information Technology Products & Services
• Life Sciences
• Community Infrastructure (health services, education,
retail, transportation, government administration and other
local serving industries)
• Innovation & Specialized Services (technical R&D,
financial services, legal services, design)
• Other Manufacturing (metal manufacturing, food/ag,
machinery, petrochemical, textiles, paper, mining, etc)
• Business Infrastructure (facilities, administrative svcs)
Industry Overview
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Computer Software (consumer, enterprise, security, digital
media)
Semiconductors/semiconductor equipment
Telecommunications
Bioscience/Medical/Pharmaceutical
Cleantech (energy efficiency, power generation, smart grid,
related software)
Defense/aerospace
Professional services (testing, marketing, finance, legal, etc.)
Together, these clusters represent 41% of all jobs
in Silicon Valley.
Local Fortune 500 Companies
Adobe Systems
Agilent Technologies
Applied Materials
Calpine
eBay
Gilead Sciences
Hewlett-Packard
Intuit
Kla-Tencor
LSI
NetApp
Oracle
Sanmina-SCI
Sun Microsystems
Varian Medical Systems
Yahoo
Advanced Micro Devices
Apple
Atmel
Cisco Systems
Electronic Arts
Google
Intel
Juniper Networks
Lam Research
National Semiconductor
Nvidia
SanDisk
Spansion
Symantec
Xilinx
Waves of Innovation &
“The Next Big Thing”
• In its lifetime, the Valley has experienced several
waves of technology innovation: defense, integrated
circuit, personal computer, Internet..
• Each wave was interrupted by competitive or external
shocks (defense cutbacks, national economic cycles)
that caused short-term employment contractions.
• But each wave built innovation networks of talent,
suppliers and financial service providers that helped
make the next technology wave possible.
Silicon Valley’s Start Up Machine
START UPS
Source: Silicon Valley 2010 (modified by SVUSEAC 4/04)
R&D Resources
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Electric Power Research Institute conducts research and development relating to
the generation, delivery and use of electricity for the benefit of the public.
NASA Ames Research Center is a leader in nanotechnology, biotechnology,
aerospace and thermal protection systems, and human factors research.
Bio-Info-Nano R&D Institute (BIN-RDI) With University of California-Santa Cruz,
NASA is partner in BIN-RDI, which includes the BIN Energy Initiative, a consortium of
organizations using novel processes and technologies to build realistic, sustainable
alternatives to hydrocarbon fossil fuels.
Department of Energy Renewable Energy Labs including Lawrence Livermore
National Lab, and Sandia National Lab. San Jose is partnered with Sandia as part of
DOE’s “SolarCity” initiative.
Universities in San Jose or nearby include Stanford University, University of
California, Carnegie Mellon University-West, San Jose State University, Santa Clara
University, 5 Community College Districts
Corporate R&D capability in organizations like SRI International, IBM, Applied
Materials, Hewlett Packard, Cypress Semiconductor, Cisco, and Google (clean energy,
energy efficiency, smart grid)
Source: City of San Jose (CA)
San Jose/Silicon Valley’s Integrated
Model for CleanTech
Research
Incubation
University of
California
Environmental
Business Cluster
Stanford University
San Jose BioCenter
San Jose
State University
US Market Access
Center
NASA
Venture Capital
Dept of Energy
Labs, Livermore,
Sandia
CleanTech Open
California Energy
Commission
Prototyping/
Testing/
Production
DemonstrationCertification
Electronic
Transportation
Development
Center
Underwriters
Laboratory Solar
Testing/Certificatio
n Center
City of SJ
Demonstration
Program
SolarTech Center
of Excellence
Las Plumas
EcoPark
Market
Adoption
Real Estate
facilitation
Green Vision Goals
CleanTech
Incentives Fund
One-Stop
Permitting
Workforce
Development
Grants
Innovative Finance
California
Enterprise Zone
City Procurement
Federal, State
Policy Advocacy
“Solar City”
Showcase
National Science
Foundation
Workforce development
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Source: City of San Jose (CA)
Silicon Valley’s CleanTech Sector
Thriving, diverse CleanTech Cluster

San Jose is home to > 3,200 core Clean tech
jobs, 60 companies; employment doubled last
18 months

Silicon Valley region has > 10,000 jobs, 150
Green Establishments

30% of US CleanTech VC is invested in areas
companies – $1.8 billion in 2008, double
2007 level
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City CleanTech Strategy: achieve 25,000
Clean Tech jobs by 2022

San Jose City Hall
Source: City of San Jose (CA)
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Examples of Silicon Valley’s CleanTech Companies

SunPower is the global leader for developing high-efficiency solar solutions for
homes, businesses, commercial buildings and utilities.

Philips Lumileds Lighting Company is the world's leading manufacturer of highpower LEDs and a pioneer in the use of solid-state lighting solutions for everyday
purposes including automotive lighting, computer displays, LCD televisions, signage
and signaling and general lighting

Echelon is a global leader whose technology enables “smart” energy solutions across
a wide range of markets, including commercial buildings, industrial plants, schools,
streetlights, warehouses, electric vehicle charging stations, and smart metering
infrastructure.

Nanosolar is a global leader in solar power innovation, leveraging recent science in
nonstructured materials to profoundly change the cost efficiency and production
scalability of solar electricity cells and panels.
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Viridis Earth Technologies, winner of the Clean Tech Open Energy Efficiency
”
”
Award for innovation that reduces energy consumption of air conditioners.

Electra Drive, winner of the “Transportation Award” at the Clean Tech Open, is
commercializing an invention to enable the mass conversion of existing cars and light
trucks to electric drive

Stion Corporation is a solar photovoltaics company developing high-efficiency
thin-film modules.
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Source: City of San Jose (CA)
Resources for Local Industry Support
Anita Borg Institute for Women and Technology
Asia America MultiTechnology Association (AAMA)
Asia Silicon Valley Connection (ASVC)
BayBio
CEONetworking
Clean Tech Institute
EPPIC
FountainBlue
Forum for Women Entrepreneurs
Inventors' Alliance
German American Business Association of California, Inc. (GABA)
International BioMed Society (IBMS)
Nano SIG
MIT/Stanford Venture Lab (VLAB)
Software Development Forum
NewCEO Club
San Jose Bio-Center (SJBC)
Plug and Play Tech Center
Silicon Valley Chinese Wireless
Professional Association of Exporters & Importers (PAEI) Silicon Vikings
San Jose State Univ - Ctr for Entrepreneurship (SVCE)
Semiconductor Industry Assn
Santa Clara Univ. MBA Entrepreneur Connections
Women 2.0
Silicon Valley Indian Professionals Organization (SIPA) SEMI
SVAM - American Marketing Association
TiE
U.S. – China Green Energy Council
Venture Capital Private Equity Roundtable
Women in International Trade – Northern California
Women in Technology International (WITI)
Business Association of Stanford Entrepreneurial Students Entrepreneurs’ Organization
Women Initiatives
eWomen Network
IEEE Silicon Valley
Women in Telecom
MonteJade
Silicon Valley Engineering Council
Bay Area Start Up Network
US Angel Investors
Silicon Valley Band of Angels
Keiretsu Forum
….any many more!
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Where to Start
•
Created in 2007
•
Primary U.S. Government Mechanism to Manage Foreign
Investment Promotion
•
Tools IIA provides:
1.
Facilitate Investment Inquiries
2.
Act as Ombudsman
3.
Connect Investors with U.S. States
4.
Provide Policy Guidance
5.
Educate Investors
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Contact Information
Catharina Kronstrom
Senior Commercial Advisor
U.S. Commercial Service - Stockholm
Phone: +46 8 783 53 52
Email: Catharina.Kronstrom@mail.doc.gov
Invest in America
Email: christopher.clement@trade.gov
http://www.investamerica.gov
Joanne Vliet, Director
Silicon Valley U.S. Export Assistance Center
U.S. Commercial Service- San Jose
Email: joanne.vliet@trade.gov
30