ABSTRACT
In the context of increased global competitive pressures and the multiplication of innovation centres around the world, the spatial dispersion of R&D units in different countries has gained unprecedented dimensions. The improved coordination of independent R&D laboratories thereby intensifies cross-border transfers of knowledge and technology within the multinational firm (MNF): from the parent company to the affiliates; from the affiliates to the parent company; and between the affiliates. Empirical evidence indicates that, beginning with the second half of the 1990s, foreign investment in R&D markedly increased in both developed and developing countries. Although this particular type of investment is concentrated in developed countries, recent data show that growth was far more pronounced in developing countries. Even so, this trend does not affect all countries. The major emerging destinations are China, India and Brazil. Malaysia, Thailand, the Visegrad countries (the Czech Republic, Hungary, Poland and Slovakia) and Mexico also stand out from the rest of the developing countries by their increased attractiveness as a location for multinational firms’ R&D affiliates.
