In a previous article, I discussed the actions we took to integrate the technical activity that resulted from the merger of the Celanese and Hoechst Corporations in 1987 (RTM March-April 1990, pp. 16-24). Now, in this article, I shall examine the issues that have arisen as we have tried to manage RD about one-half of these are professional or degree people. The major sites for RD Charlotte, North Carolina; and Corpus Christi, Texas, with small labs in Bishop, Texas and Coventry, Rhode Island. The bulk of the RD we believe that within the next few years we will get closer to a 50/50 balance between Europe, specifically Germany, and the rest of the world. One indication of this is that since the merger of Celanese and Hoechst in 1987, there has been a continuing increase in R&D dollars spent in the United States, starting with about $180 million in 1987 and a 1990 budget of $243 million. That number increased again in 1991. Key Issues The issues one must look at when managing R&D on a global basis are the same as those that confront you when you are trying to manage your business on a global basis. For example, one of the most important things a multinational company has to determine is its strategic direction: What are its markets, its objectives, its technologies, and its horizons? Recognizing that there are going to be strategic markets for the company on both a global and a local basis, how do we pick them? Which ones do we want to maintain? Which ones are we willing to grow? And, which are we willing to give up, based on redefining our strategic objectives? Then again, there are strategic technologies for our businesses in our existing product lines and markets as well as the new technologies and markets we wish to pursue. 1. Global Market, Local Technology.--I maintain that markets are global and technology development is not. By this I mean that there may be a market that is global in terms of automotive, aircraft, aerospace, telecommunications, and the like. However, there will usually be one center or one country where the R&D and the technology development has a historical strength, where the scientific resources are, where the people resources are, and where the leadership role exists. The strength of that technology development is mostly focused on the local markets, but it is recognized that it has to be modified or adapted to address a global market. That is what R&D management as well as business management have to address. 2. Cost of R&D/Resource Allocation.--The cost of R&D in various locations is another issue. For the most part, we have found that when all costs are considered there are no major differences in R&D funding from one location to another. …