DECISION PARAMETERS IN GLOBAL RESEARCH-AND-DEVELOPMENT MANAGEMENT

This paper addresses the question of which variables have what kind of impact on the decision to locate new R&D facilities in countries diff erent from the home country of a corporation. In the first section of the paper we demonstrate the complexity of this question by referring to empirical research, managerial statements and literature. We then d evelop a conceptual model for the location decision of international R &D activities. This is based on Porter's (1990) framework of the facto rs constituting the competitive advantage of nations. In the final sec tion of this paper we show how such a model helps us to understand and also to explain a number of management issues related to global R&D a ctivities.