Foreign Direct Investment in Pennsylvania

Posted by Nathan Book

Foreign direct investment (FDI) refers to investments made by companies or individuals of one country into business interests in another country. This can include opening new facilities, acquiring existing businesses, or reinvesting earnings from foreign operations, all of which serve the purpose of establishing a lasting interest in the management of the foreign enterprise. FDI not only benefits the investor, providing access to new markets, lower costs, and increased profits, but also stimulates economic development in the host country, bringing in capital, technology, and access to global markets while simultaneously creating new jobs.

Consequently, FDI plays a key role in Pennsylvania, strengthening both the state’s economy and its workforce. Demonstrating a firm commitment to this purpose, Pennsylvania’s Office of International Business Development (OIBD), a division of BusinessPA, actively works to attract foreign investors and support the success of global companies operating in the state. As part of this mission, OIBD provides a variety of resources and information to assist parties interested in FDI and connect them with available programs, solutions, and funding opportunities. This information includes the following facts regarding FDI in Pennsylvania, emphasizing its significant impact in the state: 

  • Pennsylvania’s GDP is $965 billion, comparable to that of the Netherlands and larger than countries like Switzerland and Turkey
  • There are around 7,300 foreign-owned firms operating in the state
  • Over 436,000 Pennsylvania workers are employed by foreign-owned firms
  • The top countries investing in the state include the United Kingdom, Germany, Canada, France, and Japan 

The vast extent of FDI in Pennsylvania is further evidenced by data regarding the number of foreign-owned firms and employment in the state. Such information was compiled from OIBD’s country fact sheets, which further demonstrate the business connections between Pennsylvania and thirty-one key countries that do business there. The fact sheets, which contain the data below pertaining to total and manufacturing FDI, can be found here.

*Data represents a minimum of 50% foreign ownership. The total number of firms may include multiple locations, but excludes retail establishments.

Total Foreign-Owned Firms in Pennsylvania by Country and their Employees, 2023

Country# of FirmsCountry# of Jobs
1United Kingdom8561United Kingdom54,316
2Germany7442France48,191
3Canada6373Germany37,289
4France4814Canada33,725
5Japan4685Switzerland22,980
6Ireland3826Japan21,402
7Switzerland3577Netherlands20,383
8Netherlands2068Ireland16,719
9Luxembourg1579Mexico16,689
10Australia142         10Luxembourg14,909

Foreign-Owned Manufacturing Firms in Pennsylvania by Country and their Employees, 2023

Country# of FirmsCountry# of Jobs
1Germany2511France26,568
2United Kingdom2202Germany24,050
3Ireland1643United Kingdom15,972
4Japan1294Japan11,361
5France1255Ireland7,856
6Canada786Luxembourg7,515
7Netherlands667Netherlands7,066
8Italy528Israel5,619
9Mexico459Canada4,982
10Sweden3910Mexico4,189

(Source: Dun & Bradstreet, October 2023)

With foreign-owned firms using Pennsylvania as a center for production, distribution, and sales, such companies contribute significantly to both exports and imports. This and additional international trade is key to Pennsylvania’s engagement with economies around the world, working in conjunction with FDI to drive economic growth in the state. Export and import data for Pennsylvania is also available on BusinessPA’s website and includes the following:

  • Exports account for over 5% of the state’s GDP
  • Exports support around 1.6 million jobs in Pennsylvania
  • Over $1 trillion in goods and services move through PA infrastructure each year
  • Pennsylvania reaches customers in 209 countries and territories

The most recent data revealing the state’s top export and import countries is available from USA Trade Online, an online data tool from the U.S. Census. It is worth noting that this data does not include export or import shipments under $2,500 that are not subject to other regulatory requirements, meaning that the values listed understate the total amount of trade that took place during the designated time period.

Top Countries by Exports from Pennsylvania, January 2024 through March 2025 (in $USD)

Top Countries by Increase in Exports from Pennsylvania, 2014 to 2024 (in % Change)

World Total32.33%
Timor-Leste22368.23%
Cuba5594.44%
Solomon Islands4301.12%
Micronesia2438.03%
Tajikistan1775.90%
Albania1670.43%
Cote d’Ivoire1453.16%
Comoros1203.44%
Uzbekistan851.45%
French Guiana803.70%

Top Countries by Imports to Pennsylvania, January 2024 through March 2025 (in $USD)

Top Countries by Increase in Imports to Pennsylvania, 2014 to 2024 (in % Change)

World Total52.95%
Togo6026335.07%
Namibia80740.56%
Slovenia20528.46%
Zambia18846.48%
Mali15153.69%
New Caledonia14296.46%
Libya12894.97%
Seychelles11691.08%
Laos11686.76%
Albania11225.75%

(Source: USA Trade Online, U.S. Census Bureau)

OIBD and the broader BusinessPA team have a variety of available resources for those interested in FDI or international trade based in Pennsylvania. According to BusinessPA’s website, these services include the following:

  • Site Selection & Visits: Find and tour potential sites that fit business needs. 
  • Research & Data: Get detailed insights on available workforce, infrastructure, taxes, and more. 
  • Business Connections: Meet regional and local suppliers, economic development partners and elected officials. 
  • Financial Assistance: Explore grants, low-interest loans, tax credits, and other financial tools.

For more information, visit BusinessPA’s pages on FDI and international trade. Along with these resources, Pennsylvania’s Global Investment Representatives and Authorized Trade Representatives, each of whom serve a specific geographic area, are available to assist with FDI and exporting, respectively. Reflecting Pennsylvania’s commitment to global engagement, these resources ensure that Pennsylvania remains both economically competitive and deeply connected with markets around the world.


NOT PART OF REPORT:

Potential Sources (most data is outdated):

Dun & Bradstreet- requires subscription (more recent??)

PA OIBD (minimal data, but it’s newer- from D&B): https://pagetsitdone.com/locate_or_expand/foreign_direct_investment.html

Global Business Alliance Report: https://globalbusiness.org/wp-content/uploads/2024/12/Pennsylvania.pdf

PA Fact Sheet: https://www.trade.gov/sites/default/files/2023-09/Pennsylvania.pdf

PA Data: https://www.bea.gov/data/intl-trade-investment/activities-us-affiliates-foreign-mnes

Potential resource w/ new data??: https://www.fdimarkets.com/about

USA Fact Sheet: https://trade.gov/sites/default/files/2025-01/SUSA%20-%20United%20States%20Fact%20Sheet_2024_2.pdf?_gl=1*r153tj*_ga*MjAxODY2NTU1Ni4xNzQ3MjMxMTY1*_ga_L884J52XQ5*czE3NDkwNDY4NzUkbzEzJGcwJHQxNzQ5MDQ2ODc3JGo1OCRsMCRoMA..*_ga_6D3N6M4S6H*czE3NDkwNDY4NzUkbzEzJGcwJHQxNzQ5MDQ2ODc1JGo2MCRsMCRoMA..USA Data: https://www.bea.gov/data/intl-trade-investment/international-transactions