The 3 Best Countries for Tech Investorshttp://www.fool.com/investing/international/2011/10/20/the-3-best-countries-for-tech-investors.aspx Tim Beyers
October 20, 2011
Do U.S. companies still rate top consideration when it comes to investing in technology? Some will say undoubtedly say yes. Our shores are home to Silicon Valley and the nearly equally legendary Route 128 corridor outside Boston. The world's biggest tech names were born here, and many of them are still growing rapidly.
Trouble is, that growth is increasingly coming from overseas. Both Apple and Intel said in earnings reports this week that international sales are rising as a portion of total sales. Intel, in particular, now derives 79% of total revenue from sources outside North America.
The rising tide of overseas investment
Only 178 of more than 600 global companies doubled in price over the past three years. Of those, 146 were based in the United States. Yet the median performance of that group ranked ninth in total return, according to S&P Capital IQ:
Sources: S&P Capital IQ, National Science Foundation data.
The trouble with looking back
So when the table says the median three-year return for German tech was 174% -- a period during which shares of software supplier SAP rallied about 70% -- you know that you're getting only a portion of the techies that call Bavaria home. (One in this case, Aixtron.)
Yet the directional trends are still fascinating, especially when you consider the top regional spenders on research and development. Israel, ranked third in median performance, produced four multibaggers and tops the list with 4.68% of gross domestic product (GDP) spending going to R&D, according to data collected by the Organization for Economic Co-operation and Development (OECD) and the United Nations Educational, Scientific, and Cultural Organization (UNESCO). (The National Science Foundation aggregated and published the findings.)