Data Update

Commissioned by Business Roundtable and the United States Council Foundation, Matthew J. Slaughter’s data update to How U.S. Multinational Companies Strengthen the U.S. Economy confirms that worldwide American companies create more U.S. jobs through their participation in the international economy. Engagement abroad through both exports and foreign investment has long supported domestic growth and job creation, and Slaughter argues this is even more critical as we strive to emerge from the global financial crisis and deep domestic recession.

Key Findings

Worldwide American companies perform large shares of domestic productivity-enhancing activities here at home, generating:

• 24.3% of total U.S. private-sector output
• 29.4% of total U.S. private-sector capital investment
• 74.4% of total R&D performed by all U.S. companies
• 45.2% of total U.S. exports

These domestic activities and participation in the global economy drive more job creation and high average compensation for American workers.

• The 22 million U.S. workers employed at worldwide American companies make on average about 20 percent more than their private sector counterparts.
• In dollar terms, that means these workers are bringing home an extra $10,000 every year.
• With the loss of nearly 8.5 million jobs since 2007, creating millions more of these high-paying jobs by helping companies access more markets is essential to fully emerge from the recession and ensure prosperity over the long term.

The international operations of worldwide American companies complement – rather than substitute for – domestic employment, compensation and investment; the U.S.-based operations of these companies account for:

• 69.8% of their total worldwide output
• 74.1% of their total worldwide capital investment
• 85.1% of their total worldwide R&D
• 68.7% of their total worldwide employment

The international affiliates of these companies are primarily located in high-income countries with economic structures similar to ours – not in low-income countries.

• Affiliates in developed countries accounted for more than 75% of output at these companies.
• Worldwide American companies employ more than two workers in the United States for each worker employed at an international affiliate.