Research on new discoveries for industrial processes. Rutherford (2004) PHG 28, 4 observes that, while R and D transnational corporations remain home-nation oriented, and in many cases locally embedded, there are forces eroding this orientation. ‘TNCs may innovate domestically, but the need for maximizing returns on investment means that R+D will spill over internationally. Home base has become insufficient to generate technological advantage.’ In 2004, 1.9% of GDP was spent on research and development in the EU-25 (1.95% in the EU-15), compared to 2.6% of GDP (NFS data) for the USA (Crescenzi et al. (2007) J. Econ. Geog. 7, 6).