Maryland’s International Footprint

1. Maryland’s International Footprint

2. Summary 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

3. Ideal Geography & Demographics

4. Ideal Geography & Demographics 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) Major Ports: 1 (Port of Baltimore) Private Businesses: 160,000 Foreign-owned: 550+

5. Ideal Geography & Demographics Driving Distance and Time from Central 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)

6. Industry Strengths • Advanced Technology Maryland’saerospace; computer modeling, encryption, gaming and simulation software; and satellite, wireless and fiber optics communications clusters are among the industries’ strongest. • Biotechnology & Health CareMaryland ranked 4th in biopharmaceutical innovation, and home to more than 350 bioscience companies. • Logistics & DistributionMaryland’s geographic location and transportation infrastructure provide ten-hour-drive access to 1/3 the U.S. market. • Investment Marylandis headquarters to two of the world’s major investment services companies, as well as regional and support operations of many of Wall Street’s largest entities.

7. Industry Strengths Maryland’s Advanced Technology Industry • Headquarters of over 40 aerospace companies, including Lockheed Martin - the world’s largest defense contractor by revenue; Northrop Grumman Electronic Systems and North American divisions of BAE Systems and Thales • Largest regional cluster of Medical Modeling & Simulation and Serious Gaming companies associate with 50 federal agencies • Home to such satellite, wireless and fiber optics communications innovators as Hughes Network Systems, Bechtel Communications, Tessco Technologies and Ciena • U.S. National Institute of Standards & Technology (NIST), which, in conjunction with the private sector, coordinates technical standards across all industries, is based here

8. Industry Strengths Maryland’s 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 National Institutes of Health (NIH), as well as Johns Hopkins University Hospital and Schools of Medicine and Public Health • Home to the world’s first successful mapping of the human genome • Ranked 2nd in the U.S. Science and Technology Index and 1st in Human Capital Investment

9. Industry Strengths Maryland’s Logistics & Distribution Industries • Within 500 kilometers of 25 % the U.S. population • Intersection of the two major interstate highways of the East Coast U.S.: I-95 (North/South) and I-70 (East/West) • BWI Airport consistently ranked as one of the best in the country; and both Reagan National and Dulles Airports within 30 kilometers of the State’s 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 5 short lines • Over 5,000 truckers, haulers and carriers operate within and from the State • Site of four foreign trade zones

10. Industry Strengths Maryland’s Investment Industry • Headquarters to two of the world’s largest investment firms: Legg Mason and T. Rowe Price • Industry giants, including Morgan Stanley, Zurich Insurance, Bank of America and M&T Bank, have established major operations in the State

11. Skilled 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 annual federal 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 technical workers in the workforce (25.4%) • Maryland ranks 5th in the percentage of “technology jobs” in the private sector 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 Electronics Association

12. Major 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 and remote learning centers

13. Major 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 Flight Center • National Institutes of Health (NIH) • National Institute of Standards and Technology (NIST) • National Security Agency (NSA) • Naval Air Warfare Center Aircraft Division • Naval Air Station Patuxent River

14. Business Conducive & Friendly Environment Among 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 private businesses 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 Sources: U.S. Department of Commerce, Ernst & Young, Tax Foundation, Federation of Tax Administrations

15. Office of International Investment and Trade The Maryland Department of Business and Economic Development’s (DBED) Office of International Trade and Investment promotes Maryland as a premiere U.S. business location and valuable trading partner. OIIT Overseas Offices • Mission: • Market Maryland as an ideal destination for foreign direct investment • Assist Maryland companies in expanding exports to global markets

16. Value-Added Services DBED and local business development agencies offer extensive assistance to foreign companies establishing physical business operations in Maryland • Market research on labor availability, wage rates, taxes, etc. • Building and site selection assistance to meet a company’s requirements • Liaison services between a company and federal, state and local government • Referrals to attorneys, accountants, banks, as well as schools, hospitals, etc. • Contacts with potential suppliers, vendors and service providers

17. State Financial & Tax Credit Programs Numerous state incentive programs potentially available to foreign companies 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 project’s level of employment creation and capital expenditure

18. State 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, competitively paid jobs, subject to limit of $1,000 per job (job creation requirement: 60 jobs during 2 year period) • Enhanced JCTC – for businesses establishing operations in “Revitalization Areas” 5% of annual wages for all full-time, competitively paid jobs, subject to limit of $1,500 per job (job creation requirement: 25 jobs during 2 year period)

19. State Financial & Tax Credit Programs Enterprise Zone Tax Credit 29 Enterprise Zones • Ten-year real property tax credits of 80% the first 5 years, decreasing 10% per year thereafter • Enhanced Job Creation Tax Credit of 5% of annual wages available if create at least 25 qualified positions, not to exceed $1,500 per job (refer to previous slide)

20. State Financial & Tax Credit Programs One Maryland Tax Credit • Businesses that invest in a project in a “qualified distressed county” may qualify for up to $5.5 million in income tax credits – project tax credits up to $5 million and start-up tax credits up to $500,000. Programs Dedicated Towards R&D Maryland Industrial Partnership (MIPS) • Accelerates the commercialization of technology by jointly funding collaborative R&D projects between companies and University System of Maryland faculty by providing funding, matched by participating companies, for university-based research projects that help companies develop new products. R&D Tax Credit • Businesses that incur qualified research and development expenses in Maryland may be entitled to Maryland R&D tax credits of 3% (basic) or 10% (growth) of eligible R&D expenses.

21. Quality of Life Maryland: “America in Miniature”

22. Quality 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 several professional 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. Let’s not forget Baltimore’s 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!

23. Contacts Office of International Investment & Trade Signe Pringle, Director E-mail: springle@choosemaryland.org Tel.: +1-410-767-3542 Office of International Investment & Trade Igor Evseev, Regional Manager for Russia E-mail: ievseev@choosemaryland.org Tel.: +1-410-767-6435