Resources & Opportunities When Considering the U.S. MarketJoanne VlietDirectorSilicon Valley U.S. Export Assistance CenterU.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.

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3

5.5 million

$40 billion

$55 billion

$404 billion

Source: Department of Commerce, Bureau of Economic Analysis

FDI in the U.S. EconomyU.S. Affiliates of Foreign

Firms Generate 19% of U.S. Exports

($204 billion in 2007)

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Industry Breakdown of FDI Position in the United States,

2009

Source: BEA

Top 10 FDI Growth Sectors in the United States

(CAGR in FDI position between 2005 and 2009)

FDI in the U.S. – Industry Perspective

1. Miscellaneous Store Retailers

2. Educational Services3. Copper, nickel, lead, and zinc

ores4. Computers and Peripheral

Equipment5. Beverage and Tobacco

Products6. Petroleum refining7. Communications Equipment8. Steel products from

purchased steel9. Oil and gas extraction10.Travel arrangement and

reservations services

94%89%73%73%

66%

52%42%

39%

37%

56%

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Top 10 FDI Positions in the United States, 2009

Note: Numbers denote percentage of the global investment position in the United States

U.S. FDI Trends

2%|$45.7b

10% | $225.8b

11% | $264.2b

20%| $453.9b 9% | $218.1b 6% | $127.8b

10% | $238b 8% | $189.4b 8% | $189.3b 2% | $43.9b

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2009 European Investment Positions in the United

States

Source: BEA

Average Annual Growth Rate of European FDI Positions in the United

States 2005 - 2009

European FDI in Perspective

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Swedish FDI in the United StatesRecent Greenfield Investment Announcements:

Source: fDi Markets

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.

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.

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.

May 2010: Saab AB announced plans to invest almost $20 million in a project in Michigan, creating 100 jobs in the aerospace sector.

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Western European Greenfield FDI Announcements in U.S. Green Energy Sector

Source: fDi Markets

FDI Projects in U.S. Alternative/Renewable Energy Sector,

2003-2009

Western Europe;

100

Asia-Pacific; 21

Eastern Europe; 1

North America; 8

South America; 1

Middle East; 1Belgium; 1

Denmark; 2France; 12

Germany; 18

Ireland; 3Italy; 3

Nether-lands; 5Norway; 1

Portugal; 10

Spain; 19

Sweden; 1

Switzer-land; 1

United Kingdom; 24

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FDI in U.S. Green Energy Sector

Source: fDi Markets

Asian-Pacific FDI in

U.S. Renewable Energy Sector

2003 2004 2005 2006 2007 2008 20090

5

10

15

20

25

30

35

40

45

Annual Number of Greenfield Investment

Projects in U.S. Re-newable Energy Sec-

tor

Western European FDI in U.S.

Renewable Energy Sector

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President Obama Tours a Foreign Company’s Renewable Energy Manufacturing Facility in Iowa

Source: Official White House Photo by Lawrence Jackson

“. . [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.”

-President Barack ObamaSiemens Wind Turbine Blade Manufacturing Plant

Fort Madison, Iowa., April 27, 2010

11Source: White House (January 8, 2010)

Novozymes Blair, Inc. (biomass) will receive $28 million in credits for a new facility in Nebraska.

Siemens Energy Inc. (wind blades) will receive $7.7 million in tax credits for operations in Iowa and Texas.

Hemlock Semiconductor Corp., a joint-venture with Dow Corning and two Japanese companies, will receive $141.8 million in credits in Michigan.

Alstom (energy & infrastructure) to receive $65 million in credits in Tennessee and Texas for nuclear and wind turbine component production.

Companies Benefiting from Clean-Energy Manufacturing Tax Incentives

AAF-McQuay, Inc. (air conditioning manufacturer), owned by Daikin Industries, to receive $2.7 million in credits in Missouri, Minnesota, Virginia.

Yingli Green Energy Americas will receive $4.5 million in credits to open a manufacturing facility to produce solar energy modules in Arizona.

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U.S. Renewable Energy SourcesSource: U.S. Department of Energy Annual Energy Review 2009

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U.S. Solar Photovoltaic Resource MapSource: U.S. Department of Energy National Renewable Energy Laboratory

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U.S. Biomass Resource MapSource: U.S. Department of Energy National Renewable Energy Laboratory

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U.S. Wind Resource MapSource: U.S. Department of Energy National Renewable Energy Laboratory

2009 U.S. Wind Power ProjectsSource: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

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U.S. Geothermal Resource MapSource: U.S. Department of Energy National Renewable Energy Laboratory

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 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 CompaniesAdobe Systems Advanced Micro Devices Agilent Technologies AppleApplied Materials Atmel Calpine Cisco Systems eBay Electronic Arts Gilead Sciences Google Hewlett-Packard IntelIntuit Juniper Networks Kla-Tencor Lam Research LSI National SemiconductorNetApp Nvidia Oracle SanDisk Sanmina-SCI Spansion Sun Microsystems Symantec Varian Medical Systems XilinxYahoo

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

Source: Silicon Valley 2010 (modified by SVUSEAC 4/04)

START UPS

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R&D Resources

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)

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San Jose/Silicon Valley’s Integrated Model for CleanTech

University of California

Stanford University

San JoseState University

NASA

Dept of Energy Labs, Livermore, Sandia

California Energy Commission

National Science Foundation

Research

Environmental Business Cluster

San Jose BioCenter

US Market Access Center

Venture Capital

CleanTech Open

Incubation

Electronic Transportation Development Center

City of SJ Demonstration Program

Las Plumas EcoPark

“Solar City” Showcase

Prototyping/Demonstration

Underwriters Laboratory Solar Testing/Certification Center

SolarTech Center of Excellence

Testing/Certification

Real Estate facilitation

CleanTech Incentives Fund

Workforce Development Grants

California Enterprise Zone

Production

Green Vision Goals

City Procurement

One-Stop Permitting

Innovative Finance

Federal, State Policy Advocacy

MarketAdoption

Workforce development

Source: City of San Jose (CA)

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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

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 high-power 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.

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.

Source: City of San Jose (CA)

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Resources for Local Industry Support

Anita Borg Institute for Women and Technology Asia America MultiTechnology Association (AAMA) Asia Silicon Valley Connection (ASVC) BayBioCEONetworking Clean Tech InstituteEPPIC FountainBlueForum for Women Entrepreneurs Inventors' Alliance German American Business Association of California, Inc. (GABA)International BioMed Society (IBMS) Nano SIGMIT/Stanford Venture Lab (VLAB) Software Development ForumNewCEO Club San Jose Bio-Center (SJBC)Plug and Play Tech Center Silicon Valley Chinese Wireless Professional Association of Exporters & Importers (PAEI) Silicon VikingsSan Jose State Univ - Ctr for Entrepreneurship (SVCE) Semiconductor Industry AssnSanta Clara Univ. MBA Entrepreneur Connections Women 2.0Silicon Valley Indian Professionals Organization (SIPA) SEMISVAM - American Marketing Association TiEU.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’ OrganizationWomen Initiatives eWomen NetworkIEEE Silicon Valley Women in TelecomMonteJade Silicon Valley Engineering CouncilBay Area Start Up Network US Angel InvestorsSilicon 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 Inquiries2. Act as Ombudsman3. Connect Investors with U.S. States4. Provide Policy Guidance5. Educate Investors

Contact Information

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Catharina KronstromSenior Commercial AdvisorU.S. Commercial Service - StockholmPhone: +46 8 783 53 52Email: Catharina.Kronstrom@mail.doc.gov

Invest in AmericaEmail: christopher.clement@trade.govhttp://www.investamerica.gov

Joanne Vliet, DirectorSilicon Valley U.S. Export Assistance CenterU.S. Commercial Service- San JoseEmail: joanne.vliet@trade.gov