The purpose of this project is to determine the current status, nature, and rationale of R&D investments in Japan by U.S. corporations. The study will 1) establish an inventory of U.S. corporations known to have made or to be making such R&D investments in Japan, 2) develop a questionnaire designed to elicit information relevant to the research objective, and 3) administer the survey to the companies identified in step 1. Since relatively little is known about U.S. corporate R&D activity in Japan, the survey will attempt to establish a baseline of information regarding U.S. R&D operations in Japan. The growing investment in Japanese R&D facilities by U.S. firms is of relevance to policymakers in terms of addressing such issues as technology transfer, the globalization of industrial R&D, and U.S.-Japanese technological competitiveness. This study represents a significant first step in understanding U.S. R&D investments in Japan by establishing a quantitative benchmark for such interests as the number of firms investing in R&D in Japan, the volume of their current and capital R&D investments, the nature of R&D (basic, applied development, product, process) the characteristics of the scientists and engineers employed, and other detailed statistical information. Additional survey items regarding the business objectives, strategies, and experiences of companies with R&D labs in Japan should provide important qualitative information on the rationale for corporate R&D investments in Japan.