Technical development opens successive new opportunities for geographical reorganization of business activities, and market competition obliges business associations to avail themselves of these. Migration of manufacturing to countries where production costs are cheaper began decades ago. Relocation of R and D and innovation activity to developing countries is relatively recent and remains to a large extent unexploited potential. The trend is a specific consequence of the process hitherto, but raises many new questions and problems. The commercial potential in attracting innovation activity has given rise to multi-factoral competition among developing countries. Such geographical reorganization of these activities has effects on the economic policy of developed countries as well.