THE GLOBALIZATION OF JAPANESE RESEARCH-AND-DEVELOPMENT - THE ECONOMIC-GEOGRAPHY OF JAPANESE RESEARCH-AND-DEVELOPMENT INVESTMENT IN THE UNITED-STATES

This paper explores the globalization of R&D by Japanese industry, exa mining the scope and nature of Japanese R&D in the United States, the globalization strategies of Japanese firms, and the determinants of th e location of offshore R&D facilities. A comprehensive dataset on Japa nese R&D in the United States was developed, and field research and su rvey research were conducted with Japanese firms and R&D laboratories. The findings indicate that Japanese corporations operated 174 stand-a lone R&D laboratories in the United States and spent more than $1 bill ion on U.S.-based R&D in 1990. Japanese R&D investment in the United S tates is geographically concentrated around leading technology centers and in the Midwest transplant automotive corridor. A large share of J apanese R&D facilities are product development facilities that customi ze products for the U.S. market and provide technical support to manuf acturing. A subset of these facilities, particularly in the automotive sector, is located at or near existing transplant factories. A smalle r number of Japanese R&D investments are scientifically oriented basic research facilities, located near major U.S. research centers to secu re access to new sources of scientific and technical talent. The findi ngs thus suggest that the globalization of R&D by Japanese corporation s is the result of: (1) the globalization of innovation and production , (2) the emergence of new centers of technological innovation and kno wledge-intensive production, and (3) the increasing importance of inte raction between the sites of innovation and production.