CorpWatch : US: Outsourcing Is Climbing Skills Ladder: "In a survey of more than 200 multinational corporations on their research center decisions, 38 percent said they planned to 'change substantially' the worldwide distribution of their research and development work over the next three years — with the booming markets of China and India, and their world-class scientists, attracting the greatest increase in projects.

Whether placing research centers in their home countries or overseas, the study said, companies often use similar criteria. The quality of scientists and engineers and their proximity to research centers are crucial.

The study contended that lower labor costs in emerging markets are not the major reason for hiring researchers overseas, though they are a consideration. Tax incentives do not matter much, it said."