In this report to the Government-University-Industry Research Roundtable, authors Jerry Thursby and Marie Thursby summarize their research on the globalization of corporate R&D. The authors surveyed 200 multinational companies about recent and future R&D location decisions, and the factors influencing those decisions. The survey confirms that China and India are primary targets of R&D expansion, but this trend does not yet portend a "hollowing out" of R&D capability in the United States. R&D location decisions are complex and driven by a variety of factors, including the potential for market growth, the quality of R&D personnel, and the environment for collaborating with universities. The cost of research, while important, is not the primary factor in siting decisions.
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