The Persistence of Home Bias for Important R&D in Wireless Telecom and Automobiles

We argue that in this age of globalization, important R&D-in automobiles and wireless telecommunication-exhibits a decisive home bias. This contrasts with findings on the rate and extent of globalization of the aggregate of activities classified as R&D. Sorting out R&D was deemed important at the outset by the firm, and comparing that to "regular" R&D by the same firms enables the argument. We take our findings on location a step further by examining, for this category of R&D, the reasons for nonglobalization.