A survey of European and U.S. businesses conducting significant research and development (R&D) projects shows that the biggest factor in their decisions on where to locate is proximity to growing markets.

Cost is not main factor when companies decide where to locate R&D projects.

"R&D is growing everywhere, but it's growing faster in emerging countries," said Merrilea Mayo, of the National Academies, a sponsor of the survey, along with the E.M. Kauffman Foundation, Georgia Tech Research Corporation and Emory University.

The survey Here or There? was released September 22 and covers responses by more than 200 European and U.S. multinational firms in 15 industries. According to the survey's authors, the business press too often concentrates on the cost-basis for locating R&D facilities, but that criterion is not of first importance to multinational companies.

Read more here.