Internationalisation of industrial R&D

The internationalisation of industrial RandD has been an increasingly debated and analysed topic since the early 1990s. A series of studies analysed this internationalisation from a German perspective. On that basis, this paper shows that while German firms have increased their international activities both in market exploitation and knowledge seeking, this cannot be interpreted as a loss of attractiveness of Germany as a research location. Rather, internationalisation is a two-way street for Germany, and the activity of foreign companies in the country has not only increased, but has also been conducted in knowledgeintensive, future-oriented technological areas. Thus, while differences between sectors and technologies will remain, it will be important in the future to further adjust the innovation system in order to better exploit the potential offered by the internationally dispersed generation and transnational diffusion of know- ledge. © 2006 Springer.