An increasing number of companies in technologically intensive industries such as pharmaceuticals and electronics have abandoned the traditional approach to managing research and development and are establishing global R&D networks in a noteworthy new way. For example, Canon is now carrying out R&D activities in 8 dedicated facilities in 5 countries, Motorola in 14 facilities in 7 countries, and Bristol-Myers Squibb in 12 facilities in 6 countries. In the past, most companies—even those with a considerable international presence in terms of sales and manufacturing—carried out the majority of their R&D activity in their home countries. Conventional wisdom held that strategy development and R&D had to be kept in close geographical proximity. Because strategic decisions were made primarily at corporate headquarters, the thinking went, R&D facilities should be close to home.