Tackling the paradox: can attaining global research excellence be compatible with local technology development? Johan Van Helleputte 1 and Alasdair Reid 2 1 IMEC vzw, Kapeldreef 75, B-3001 Leuven, Belgium helleput@imec.be 2 ADE S.A., Rue de Clairvaux 40, bte 101, B-1348 Louvain-la-Neuve, Belgium alasdair.reid@ade.be This paper uses the case of the IMEC (microelectronics research centre) to examine the compatibility between strategic IPR management of large independent research centres, and regional industrial policy missions given to such centres in return for government funding. In particular, the issue of whether a balance can be found between a necessary drive for international recognition and critical mass of funding, and a policy of IPR valorization towards regional firms is examined. The first section sets out the mission of IMEC and the evolution over time of its strategic approach to building global industrial partnerships based on a sophisticated model of IPR management. Drawing on a recent evaluation, the subject of the second section is the extent to which the results of the industrial and exploratory research activities of IMEC are then commercialized in local Flemish industry. The concluding section offers policy conclusions in terms of the instruments and objectives which public policy makers can apply to maximize the local impact of large globally operating research centres. 1. Introduction T rends towards the internationalization of R&D are well documented, 1 and tend to suggest that in order to attract R&D related foreign investment (for instance), governments need to concentrate on the promotion of a highly skilled labour force and vibrant research base, The relationship between government investment in research and development (R&D) and the competitiveness of an economy is a complex equation. Recent studies 2 have underlined that variations in the levels of business, government and foreign R&D funding, as well as in the mix of institutions (universities, government labs, etc.) supported by such expenditures, contribute sig- nificantly to differences in economic growth between countries. The Flemish Government, in requesting an evaluation of IMEC’s performance over the period 1997–2001, sought to understand whether the invested public funds generated a sufficient return to Flanders. Or, was Flemish public funding simply leading to a ‘leakage’ of knowl- edge to large multinational firms in the semi- conductor or microelectronics business? R&D Management 34, 1, 2004. r Blackwell Publishing Ltd. 2004, Published by Blackwell Publishing Ltd. 2004, 33 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.