Home Add to Favorite Contact Submit  
           28 March, 2024


    
Category:  Press » Finances

 

Politicization of Foreign Direct Investment Threatens American Innovation

Popularity:
         Views: 1556
2008-02-23 05:37:30     
Association for Competitive Technology

The Association for Competitive Technology released a comprehensive report today on the importance of foreign direct investment, particularly to innovative technology startups. In light of recent political moves to block foreign investment in 3COM and other American firms, the report urges American businesses and government regulators to support free trade and open markets.

"This report comes after news of increasing foreign investment in American companies, and confirms that such investment is invaluable to our economy and trade relationships," report co-author Braden Cox said. "The politicization of foreign investment decisions mainly hurts smaller companies and might have the unintended consequence of robbing promising American startups of the opportunity to become the next Google."

"Innovative technology startups - an important engine of economic growth - are especially dependent on a constant flow of capital which can be invested into the research and development that often leads to breakthrough new products," said co-author Nora von Ingersleben. "With the United States facing the worst financial crunch and crisis since the Great Depression, it is much harder for startups to raise capital to develop innovative new products."

The report finds that the benefits of foreign direct investment are especially pronounced for small- and medium-sized enterprises.

-- The inflow of FDI increases the supply of capital for loans to businesses and individuals, thereby decreasing the cost of borrowing money for domestic entrepreneurs. This is of great importance to SMEs, which obviously have weaker financial capacities than their larger counterparts.

-- In addition, while investing in innovative technology SMEs is often highly rewarding, it is also very risky - which means that banks prefer putting their money into larger, more established companies. This is particularly true in times of financial crisis, when banks are extremely reluctant to make high-risk investments that could have an additional negative impact on their balance sheets.

-- For SMEs in the tech sector it is therefore of utmost importance to have a wide array of capital sources from which they can tap into to grow and compete.

The full report can be found at http://www.actonline.org

The Association for Competitive Technology (ACT) is an international grassroots advocacy and education organization representing more than 3,000 small and mid-size information technology firms from around the world. ACT advocates for an environment that inspires and rewards innovation, and provides resources like the Innovators Network to help members leverage their intellectual assets to raise capital, create jobs and continue innovating.

Specialized in: Politicization
URL: http://www.actonline.org
Print press release      Bookmark this page
Related Press releases 
Goldsmith & Company: Leading the Way in Financial Services with Expert Chartered Accountants in North London (Popularity: ): London UK, (press.abc-directory ) 11 May 2023 - Goldsmith & Company, a premier accounting firm, is proud to offer exceptional financial services with their team of expert chartered accountants in North London. By delivering tailored solutions to help businesses and individuals navigate the complexities of financial management, Goldsmith & Company has become a trusted partner for clients seeking expert advice and support.In today's ever-changing financial landscape, it is crucial for ...
Atlas Insurance Agency Discusses Hawaii Commercial Property Insurance (Popularity: ): Honolulu, Hawaii ( press.abc-directory.com ) October 10, 2022 - Atlas Insurance Agency, a Hawaii property and casualty insurance agency, has recently delivered an article discussing the basics of Hawaii commercial property insurance. This new informational resource was written by the insurance agents at Atlas to provide business owners in Hawaii with information about business property coverage that is unique to their state. The Atlas team is made up of experienced ...
Georgia Business Insurance Agency Releases a New Educational Resource on Commercial Auto Insurance (Popularity: ): Alpharetta, Georgia ( press.abc-directory.com ) August 4, 2021 - Southern States Insurance has recently released a new educational resource that discusses commercial auto insurance and the details of coverage. The new blog is guided by the Georgia commercial auto insurance experts at Southern States Insurance who have extensive experience helping those in the commercial auto industry get thorough and comprehensive coverage.Southern States Insurance offers readers some valuable information that helps ...
Connecticut Business Insurance Brokers Discuss General Liability Coverage (Popularity: ): Norwalk, Connecticut (press.abc-directory) September 30, 2020 - The Connecticut business insurance brokers at JMG Insurance Agency recently released a new informational article that answers the question, "what does general liability insurance cover?". The new blog can be found on the company's website. The information in the article is guided by the insurance agency's extensive professional experience handling general liability plans and ensuring their clients are properly and comprehensively covered. Their ...
FinAcc Global Introduced Financial Reporting Services for Manufacturing Industry (Popularity: ): Arlington,texas-- September 10, 2020 -- It has been an immense pleasure to announce that FinAcc Global is now offering financial reporting services for manufacturing industries. FinAcc Global presents accurate yet customized financial statements and reporting services that help manufacturers to make informed decisions. The company aims to prepare financial reports that help their clients expand their business growth with increased revenue. Moreover, they follow a distinct process while working on ...


Related Business 
Multilateral Investment Guarantee Agency (MIGA) (Popularity: ): Encourages direct foreign investment in developing countries with investment guarantees against political risks.
MIGA (Popularity: ): The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank Group. Its purpose is to facilitate the flow of foreign direct investment to its developing member countries through the provision of investment guarantees against political risks.
American Sons of Liberty (Popularity: ): Under reported news stories exposing media bias. Reveals legislation that threatens American liberty.
Investment Services Brazil (Popularity: ): Investment service Brazil provides legal and logistical services for foreign investor buying real estate in Brazil. Our legal services team provide a totally transparent visible and through purchasing verification service. Brazil very much favors foreign investors with robust legal protection and strong economic indicators which both serve to attract your investment. Our responsibility at Investment Services Brazil is to ensure that investment decision is correctly supported before, during and after ...
Mody, Ashoka (Popularity: ): Includes full text of all recent publications on international finance and foreign direct investment and earlier publications on technological and institutional change.
Brands & Company, LLC (Popularity: ): Your gateway Innovation, Innovation Developments and Innovation Resources. Our goal is to help you better understand the innovation process to create and sustain innovation in whatever you do.
The Collegiate Network (Popularity: ): A network of conservative alternative student newspapers and magazines established in 1979 to focus public awareness on the politicization of American higher education. Description of member services, alumni information, and links to member publications provided.
Arab Investment Bank s.a.l. (Popularity: ): Offers medium and long term financing and investments in local and foreign currencies. Includes information on the Lebanon stock and bond markets, as well as foreign exchange rates.
American Institute For Foreign Study (Popularity: ): American Institute For Foreign Study (AIFS, Inc.) - Since 1964 a source for worldwide study abroad programs, including high school educational travel
Intelligo Capital Corporation (Popularity: ): An alternative investment fund based in Canada. They offer to meet the needs of institutions and high net worth individuals who are seeking to diversify their investment holdings. They focus their investment strategy on the following markets: foreign exchange, fixed income, and selective exchange traded index futures.