Foreign and domestic companies have been granted increasing numbers of higher value incentive deals for investments in the US than any other country worldwide. Since 2020, companies investing in the US have been awarded $54.4bn worth of incentives — over six times that of the $8.14bn granted by second-placed Canada, according to IncentivesFlow, a database recently acquired by fDi Intelligence.
The overwhelming majority of the 11,271 incentive deals tracked in the US since 2020 were either grants, subsidies or tax-based incentives. The UK, which is expected to announce support for green investment this week in response to US and EU incentive packages, has offered around 88% fewer incentive deals than the US since 2020, according to IncentivesFlow figures.
In 2022, global incentives offered to investing companies topped $44bn, an all-time high and an increase of 77% on the previous year. Around half of 2022’s figure was accounted for by the electronics industry, where governments have rolled out massive support for semiconductor and battery projects.
Global investment into semiconductors surpassed $90bn in 2022, which is higher than any other year since records began in 2003, fDi Markets data shows. The average incentive spend per job created in 2022 was estimated at about $69,000, up by 169% on the previous year and its highest ever level, according to IncentivesFlow data since 2010.