MD Competitiveness_FDI General Presentation

8/6/2019 MD Competitiveness_FDI General Presentation

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Marylands International Footprint


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Maryland offers unparalleled assets for physical business

operations of foreign companies in the United States

Ideal Geography and Demographics

Industry Strengths

Skilled Workforce

Business Conducive and Friendly Environment

Office of International Trade and Investment

Value-Added Services

State Financial and Tax Credit Programs

Quality of Life

Summary


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Ideal Geography & Demographics


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Snapshot of Maryland

Size: 32,000km2

Population: 5.6 million

Capital: Annapolis

Largest City: Baltimore

Foreign Trade Zones: 4

Major U.S. Highways: 2 (I-70 & I-95)

Major Airports: 1 (BWI)

MajorPorts: 1 (Port of Baltimore)

Private Businesses: 160,000

Foreign-owned: 550+


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Driving Distance and Time fromCentral Maryland

Washington: 61 km (45 minutes)

Philadelphia: 153 km (1.5 hours)

New York: 296 km (3 hours)

Boston: 631 km (6 hours)

Detroit: 850 km (8 hours)

Atlanta: 1047 km (10 hours)

Chicago: 1094 km (10 hours)

Miami: 1783 km (16 hours)


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Industry StrengthsIndustry Strengths

Advanced Technology Marylands aerospace; computer modeling, encryption,gaming and simulation software; and satellite, wirelessand fiber optics communications clusters are among theindustries strongest.

Biotechnology & Health Care Maryland ranked 4th in biopharmaceutical innovation,and home to more than 350 bioscience companies.

Logistics & Distribution Marylands geographic location and transportationinfrastructure provide ten-hour-drive access to 1/3 theU.S. market.

Investment Maryland is headquarters to two of the worlds majorinvestment services companies, as well as regional andsupport operations of many of Wall Streets largestentities.


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Industry StrengthsMarylandsAdvanced Technology Industry

Headquarters of over40 aerospace companies, including LockheedMartin - the worlds largest defense contractor by revenue; NorthropGrumman Electronic Systems and North American divisions of BAESystems and Thales

Largest regional cluster of Medical Modeling & Simulation and SeriousGaming companies associate with 50 federal agencies

Home to such satellite, wireless and fiber optics communicationsinnovators as Hughes Network Systems, Bechtel Communications,Tessco Technologies and Ciena

U.S. National Institute of Standards & Technology (NIST), which, inconjunction with the private sector, coordinates technical standardsacross all industries, is based here


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Marylands Biotechnology & Health Care Industries

One of the highest concentration of bioscience companies in the U.S.

Corporate headquarters to such industry leaders as MedImmune,Celera, Human Genome Sciences, Emergent BioSolutions, BD

Diagnostics, Martek, Qiagen and Gene Logic

Site of the U.S. Food & Drug Administration (FDA) and the NationalInstitutes of Health (NIH), as well as Johns Hopkins University Hospitaland Schools of Medicine and Public Health

Home to the worlds first successful mapping of the human genome

Ranked 2nd

in the U.S. Science and Technology Index and 1st

inHuman Capital Investment


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Industry StrengthsIndustry StrengthsMarylands Logistics & Distribution Industries

Within 500 kilometers of 25 % the U.S. population

Intersection of the two major interstate highways of the East CoastU.S.: I-95 (North/South) and I-70 (East/West)

BWI Airport consistently ranked as one of the best in the country; andboth Reagan National and Dulles Airports within 30 kilometers of theStates border

Port of Baltimore the farthest inland major port of the East Coast U.S.

Supports two Class I railroads - CSX and Norfolk Southern - and 5short lines

Over 5,000 truckers, haulers and carriers operate within and from theState

Site of four foreign trade zones


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Marylands Investment Industry

Headquarters to two of the worlds largest investment firms: LeggMason and T. Rowe Price

Industry giants, including Morgan Stanley, Zurich Insurance, Bank ofAmerica and M&T Bank, have established major operations in the State


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Skilled WorkforceSkilled Workforce

Among the 50 U.S. states: Maryland ranks 2nd in the percentage of doctoral scientists and

engineers in the workforce (1.04%)

Maryland ranks 1st nationally in federal obligations for annual research

and development on a per capital basis ($1,877); 2nd in total annualfederal R&D obligations ($12.2 billion)

Maryland ranks 1st in the percentage of junior- and senior-class (11th

and 12th grade) high school students pursuing Advanced Placement(AP) studies

Maryland ranks 2nd in the percentage of professional and technicalworkers in the workforce (25.4%)

Maryland ranks 5th in the percentage of technology jobs in the privatesector alone, according to the Tech America (8.0%)

Sources: U.S. Departments of Commerce & Labor, National Science Foundation, State New Economy Index, College Board, American ElectronicsAssociation


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Major Academic ResourcesMajor Academic Resources

Johns Hopkins University

University System of Maryland (UMD)

- University of Maryland (College Park)

-University of Maryland Baltimore County (UMBC)

- University of Maryland Baltimore (UMB)

- University of Maryland Medical Center

United States Naval Academy

Morgan State University

Statewide network of local colleges, community colleges andremote learning centers


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Major Government FacilitiesMajor Government Facilities

Aberdeen Proving Ground

Army Research Laboratory

Army Medical Research Institute of Infectious Diseases

(USARMIID), Ft. Detrick

Defense Information School,Ft. George G. Meade

Department of Energy Food and Drug Administration

NASA Goddard Space FlightCenter

National Institutes of Health (NIH) National Institute of Standards and

Technology (NIST)

National Security Agency (NSA)

Naval Air Warfare Center AircraftDivision

Naval Air Station Patuxent River


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Business Conducive & Friendly EnvironmentBusiness Conducive & Friendly EnvironmentAmong the 50 U.S. states: Maryland ranks 1st in median household income ($68,080)

Maryland ranks lowest in share of state and local taxes collected from privatebusinesses as percentage of taxes collected from all sources (30.7%)

Maryland ranks 5th in per capita personal income ($48,091)________

Tax Burdens of Mid-Atlantic U.S. States: A Comparative Snapshot

Corporate Income

Tax Top Rate (2009)

Individual Income TaxTop Rate (2009)

Sales Tax Rate (2009) State & Local Tax Revenue

as % of Income (2006)

Maryland 8.250% 6.25% 6.00% 11.1%

Delaware 8.700% 6.95% N/A 11.6%

New Jersey 9.000% 10.75% 7.00% 12.5%

New York 7.100% 8.97% 4.00% 15.7%

Pennsylvania 9.990% 3.07% 6.00% 11.4%

Virginia 6.000% 5.75% 5.00% 10.5%

Washington,DC

9.975% 8.50% 5.75% 14.4%

West Virginia 8.500% 6.50% 6.00% 12.3%

Sources: U.S. Department of Commerce, Ernst & Young, Tax Foundation, Federation of Tax Administrations


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OfficeofInternational Investment and Trade

The Maryland Department of Business and Economic Developments(DBED) Office of International Trade and Investment promotes Marylandas a premiere U.S. business location and valuable trading partner.

Mission:

Market Marylandas an idealdestination forforeign directinvestment

Assist Marylandcompanies inexpanding exportsto global markets

OIITO

verseasO

ffices


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ValueValue--Added ServicesAdded Services

DBED and local business development agencies offer extensiveassistance to foreign companies establishing physical businessoperations in Maryland

Market research on labor availability, wage rates, taxes, etc.

Building and site selection assistance to meet a companys requirements

Liaison services between a company and federal, state and localgovernment

Referrals to attorneys, accountants, banks, as well as schools, hospitals,

etc.

Contacts with potential suppliers, vendors and service providers


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State Financial & Tax Credit ProgramsState Financial & Tax Credit Programs

Numerous state incentive programs potentially available to foreigncompanies setting up physical operations in Maryland

Division of Finance Programs Job Creation Tax Credit

Enterprise Zone Tax Credit

One Maryland Tax Credit

Programs Dedicated Towards R&D

DBED incentives based upon a projects level ofemployment creation and capital expenditure


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State Financial & Tax Credit ProgramsState Financial & Tax Credit Programs

Division of Finance Programs

Low interest loans

Loans that are convertible to grants

Access to lower cost private capital

Job Creation Tax Credit (JCTC)

Income Tax Credit to businesses creating new jobs in Maryland

Standard JCTC 2.5% of annual wages for all full-time, competitivelypaid jobs, subject to limit of $1,000 per job (job creation requirement: 60

jobs during 2 year period) Enhanced JCTC for businesses establishing operations inRevitalization Areas 5% of annual wages for all full-time, competitivelypaid jobs, subject to limit of $1,500 per job (job creation requirement: 25jobs during 2 year period)


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State Financial & Tax Credit ProgramsState Financial & Tax Credit ProgramsEnterprise Zone Tax Credit

29 Enterprise Zones

Ten-year real property taxcredits of 80% the first 5 years,decreasing 10% per yearthereafter

Enhanced Job Creation TaxCredit of 5% of annual wagesavailable if create at least 25qualified positions, not to exceed$1,500 per job (refer to previousslide)


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Quality of LifeQuality of LifeMaryland: America in Miniature


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Quality of LifeQuality of Life

Maryland is often referred to as "America in Miniature" and with so much to

do, so close together, residents enjoy a broad range of lifestyles and activities

within convenient reach of major metropolitan areas. Each region of the state

presents distinctly different styles and histories. Maryland is home to severalprofessional sports teams and more than a dozen nationally competitive

college-level teams. Maryland also presents a variety of activities and fun for

the whole family an excellent zoo, world-class National Aquarium, the B&O

railroad museum, and the Maryland Science Center. Lets not forget

Baltimores Inner Harbor which offers rides on sailing vessels, visits on historic

ships and a submarine, summer evening concerts, shopping and great dining

restaurants. So come and enjoy the beautiful and exciting attractions that

Maryland has to offer!


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ContactsContacts

Director, Office of International Investment & Trade

Signe Pringle [email protected]; +1-410-767-3542

Regional Manager, Africa

Igor Evseev [email protected]; +410-767-6435

MD Competitiveness_FDI General Presentation

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