Firms increasingly perform research and development (R&D) at locations outside their home countries. We refer to this development as the internationalisation of business R&D. The internationalisation of R&D has become an important trend that shapes the national innovation systems of all EU and OECD countries. Foreign-owned firms already account for 20% to 25% of total business R&D in France, Germany and Spain; between 30% and 50% in Canada, Hungary, Portugal, Slovakia, Sweden and the UK; and more than 50% in Austria, Belgium, the Czech Republic, Malta and Ireland. The project... “Internationalisation of business investments in R&D and analysis of their economic impact” has been launched by the Directorate-General for Research and Innovation of the European Commission (Economic Analysis Unit) to examine this phenomenon in detail. This study is part of a set of projects providing key information for policy making in the perspective of contributing to growth in Europe through innovation policies.