The paper examines the location of R & D in Britain on both an aggregate (R & D service employment—MLH 876) and micro (pharmaceutical research activity) scale. R & D is concentrated in the core South East region but over time no clear regional trend is apparent. On an urban-rural basis, R & D is relatively dispersed and decentralization appears to be continuing over time. The paper then examines industrial R & D within the context of corporate organization. It concludes that ‘internal’ locational factors are of primary importance in industrial R & D location. The implications for a regionally oriented innovation policy are discussed.