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Transnational corporations and the internationalization of R&D

This World Investment Report examines the latest trends in foreign direct investment (FDI) and looks at how research and development (R&D) has become an international activity thanks to multinational corporations.

The report indicates that FDI flows grew in 2004, driven mainly by FDI to developing countries. It says that multinational companies' R&D in developing countries has become more complex, often going beyond local market adaptation to include activities that target global markets.

The report emphasises that countries receiving inflows of FDI must have coherent policies to promote beneficial R&D interactions between multinational corporations and domestic organisations.

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