In the course of globalisation, the integration of German companies internationally has increased strongly. It is generally assumed that a part of this trend is a one-sided transfer of German companies' research and development (R&D) activities to other countries. A new study conducted by DIW Berlin shows that this fear is unfounded.1 In fact, foreign firms operating in Germany are increasing their R&D activities to approximately the same extent as German companies abroad. This shows Germany to be an attractive research location.
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