Maryland & Ohio: 2026 Tech FDI Powerhouses Emerge

ANALYSIS

The US continues to pull in foreign direct investment (FDI), but in 2026, Maryland and Ohio have jumped out as serious, if unexpected, hotspots for tech money. Maryland’s FDI is surging, mostly in cybersecurity and biotech, while Ohio’s smart bet on advanced manufacturing and artificial intelligence (AI) is making it a top choice for international investors. This isn’t just a blip. It’s the direct result of smart policy, targeted infrastructure spending, and a skilled workforce, all of which are starting to pull tech investment away from the coasts.

Maryland’s Cyber Corridor and Biotech Boom

Maryland’s steady pull for tech FDI is no accident, it’s baked into its DNA. The state’s proximity to federal agencies and research institutions is a massive advantage. You have the National Security Agency (NSA) at Fort Meade, the National Institutes of Health (NIH) in Bethesda, and the Food and Drug Administration (FDA) in Silver Spring all creating an incredible demand for specialized tech, which in turn draws in international firms looking to partner or sell to them. In 2025 alone, Maryland attracted over $3.5 billion in foreign direct investment for its tech sector, according to the Maryland Department of Commerce. That’s a 15% jump from the previous year, showing sustained interest.

The I-270 Technology Corridor, which runs from Rockville up to Frederick, is ground zero for biotech. Big players like AstraZeneca’s MedImmune division show the kind of anchor presence that attracts more investment. We’re seeing new companies, especially from Europe and Asia, setting up R&D centers and manufacturing plants to get access to the state’s talent and regulatory expertise. The University of Maryland, College Park, and Johns Hopkins in Baltimore pump out a steady stream of graduates in computer science, engineering, and life sciences, creating a solid pipeline of human capital. It’s also about the deep bench of experienced pros who already know the ins and outs of federal contracting and regulated industries.

The Maryland Innovation Initiative (MII), a program that helps commercialize research from state universities, has been great at seeding startups that often get acquired or courted by international firms. I’ve seen how targeted state incentives, like the Maryland Small Business Development Financing Authority (MSBDFA) and various income tax credits for qualified data centers, can really sweeten the pot for foreign companies. These are real dollars, not just talking points. A firm planning to drop $50 million on a new cybersecurity operations center in Anne Arundel County (right near Fort Meade, of course) can shave a lot off its initial tax bill. That makes Maryland look a lot better than Northern Virginia, which is always fighting for the same projects.

Ohio’s Industrial Evolution: AI and Advanced Manufacturing

Ohio’s story as a tech FDI hotspot is different, but just as strong. Where Maryland leans on its federal ties, Ohio is using its industrial past to build its future. The state brought in over $2.8 billion in tech FDI in 2025, with most of it going into advanced manufacturing, electric vehicle (EV) tech, and AI development. For anyone watching global supply chain realignments and the reshoring push, this makes perfect sense. Ohio’s existing infrastructure, from logistics networks to a skilled factory workforce, gives it a huge head start that many newer tech hubs just don’t have.

The Ohio Department of Development has been aggressively courting foreign money, especially from Asian auto and electronics makers. The state’s Job Creation Tax Credit, a performance-based incentive that pays out against a company’s state tax liability, has been incredibly effective. A major South Korean battery maker, for instance, just announced a $1.5 billion investment for a new plant in Lordstown, Ohio. They pointed to the workforce, central location, and the state’s incentive package as the main reasons. That one deal shows the kind of money flowing in.

And Ohio’s universities, like Ohio State in Columbus and Case Western Reserve in Cleveland, are becoming major players in AI and robotics research. This academic muscle really matters. Foreign companies are looking for innovation they can tap into for collaboration and recruiting, not just cheap land. The Columbus area, especially, has a growing tech scene focused on AI for logistics, healthcare, and industrial automation. This blend of old-school manufacturing know-how with new AI research is Ohio’s unique pitch, and it’s attracting investors who want to automate and optimize industrial work. It’s a smart play that sets Ohio apart.

Strategic Infrastructure and Workforce Development

Both Maryland and Ohio get it: attracting tech FDI takes a lot more than just tax breaks. You need solid infrastructure and a workforce that can keep up. In Maryland, that means investing in high-speed fiber and tough data center infrastructure, which is a must-have for the state’s national security and data-heavy industries. The state has been backing projects to get broadband into rural areas, because reliable internet is just a basic cost of doing business now. States often underestimate the importance of the digital backbone, but it’s one of the first things a serious tech investor looks at.

Ohio, meanwhile, has been pouring money into its physical infrastructure to support its advanced manufacturing boom. They’re upgrading ports on Lake Erie and modernizing highways and rail lines to make sure parts and products can move fast. Both states have also launched aggressive workforce development programs. Maryland’s programs tend to focus on cybersecurity certifications and biotech lab skills, often in partnership with community colleges like Anne Arundel and Montgomery College. Ohio’s programs are more focused on robotics, advanced welding, and CNC machining, with deep ties to vocational schools and technical universities like the University of Akron.

The common ground is a big push for STEM education from K-12 all the way through college. Both states know a future-proof workforce is the best incentive they can offer. Without a constant flow of engineers, data scientists, and skilled techs, even the biggest tax breaks are worthless. This is how they’re setting themselves apart, by building sustainable talent pools instead of just offering temporary deals. It’s a long game, and they’re playing it right.

The Role of Government and Public-Private Partnerships

You can’t ignore the proactive role of state and local governments in both Maryland and Ohio. In Maryland, Governor Wes Moore’s administration has made tech investment a core part of its economic strategy, personally leading trade missions and meeting with foreign execs. The Maryland Department of Commerce, led by Secretary Kevin Anderson, has worked to cut the red tape for foreign companies trying to set up shop and get incentives. This kind of hands-on approach builds confidence and shows they’re serious about creating a good business climate.

In Ohio, Governor Mike DeWine and Lt. Governor Jon Husted have put their weight behind initiatives like JobsOhio, a private non-profit that handles economic development. JobsOhio has a unique model, using profits from state liquor sales to fund grants, loans, and tax credits for businesses. Why does this work so well? This structure lets them move much faster and be more flexible than a typical state agency. I’ve seen how that speed can be the deciding factor when they’re competing for a huge investment. Getting a $10 million infrastructure grant for a new factory site approved through JobsOhio can happen way faster than waiting for a rigid state budget process to play out.

These public-private partnerships create a collaborative culture where industry, academia, and government are all pulling in the same direction. They hold regular forums and roundtables to make sure the state’s economic plans stay lined up with what the tech sector actually needs. That close relationship attracts FDI by signaling stability and a shared plan for growth.

Future Outlook and Competitive Challenges

Looking forward, both states have work to do to keep their momentum. For Maryland, the next big growth area is probably quantum computing and advanced materials, building on its federal research base. But the state has to do something about the high cost of living in its main population centers, which can make it tough to recruit talent even with high salaries. It’s a tough balancing act. I think Maryland’s long-term success will depend on how quickly it can turn federal research into commercial products.

Ohio’s future is tied to how well it can weave AI and automation through its entire manufacturing sector, moving from just EVs to all kinds of industrial uses. The state also needs to fight the perception that it’s just a “rust belt” state and really sell its tech story globally. The new Ohio Innovation District they’re building around Columbus, which aims to create 20,000 new jobs and pull in billions, is a big step in that direction. The competition for global tech FDI is intense, with Texas, North Carolina, and Arizona all making serious bids. But Maryland and Ohio have smart, distinct strategies that play to their own strengths. They aren’t trying to be the next Silicon Valley. They’re building their own thing, and that’s a much more durable path to success.

Maryland and Ohio have become major destinations for tech FDI because of strategic planning, targeted incentives, and a real commitment to building specialized workforces. They didn’t just get lucky. Their success provides a playbook for other states trying to attract global money: know your strengths, invest in your people and infrastructure, and get out there and build relationships with international partners. Tech investment is spreading out, and these two states prove that innovation isn’t confined to the coasts.