The competitiveness of the American economy depends disproportionately on the competitiveness of its multinational corporations, especially those headquartered in the United States. During the 2000s, however, a worrisome trend appeared. The role of multinationals in the American economy declined, and their activities in the rest of the world grew faster than their activities in the United States. The evidence indicates that the United States is losing its ability to attract and expand the operations of multinationals and their significant contributions to productivity growth, innovation, and high-wage employment.