The Investment and Innovation Status in the United States

Keith Knutsson of Integrale Advisors states "The US benefits from long-term structural advantages through its investment-friendly economy. A level of innovation and productivity, favorable demographics and its strong institutions are all factors that support better-quality economic and earnings growth."

The US ranks in the top 10% of all countries across economic freedom, ease of doing business, global competitiveness and world governance indicators. The US is mostly only surpassed by small countries such as Switzerland. The World Economic Forum’s Global Competitiveness Index—which considers macroeconomic stability, innovation capability, market size, business dynamism, and institutional strengths such as rule of law and control of corruption— the US ranks number one.

In terms of innovation, using patents filed abroad due to their effectiveness in commercial impact, the US files the largest number of patents abroad, and the gap between it and Japan has widened over the last several years as the US has continued to innovate at a steady pace. Additionally, the US has the most favorable international intellectual property earnings profile, as it receives $128 billion in revenues for licensing its technology to firms in other countries and pays $48 billion to patent holders in other countries, for a net surplus of $80 billion. The Euro zone has a negative balance of $65 billion. China receives only $5 billion in revenues but pays out $29 billion.

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