1. The crucial question: to invest or not to invest in research?.- 2. Characteristics of research.- 2.1 Problems of measurement and definition.- 2.2 Appropriability and transferability of research results.- 2.3 Specific risks of research.- 2.4 Specific benefits from research.- 3. Reasons for research.- 4. Research as a source of potentials.- 5. Research potentials and project funding decisions.- 6. On property rights and project potentials.- 7. Research potentials and relative share of research.- 7.1 Mandatory research.- 7.2 Mandatory research and transfer cost.- 7.3 Supportive research.- 7.4 Tests of the basic relationships.- 7.5 Estimates of research elasticities.- 7.6 Limits to research expenditure.- 8. On sufficient conditions for research success.- 9. Primary research potentials as a necessary condition for research success.- 9.1 A taxonomic approach.- 9.2 Diagnosis of trouble.- 9.3 Suggestions for building potentials.- 9.4 How much attention for each function?.- 10. On locating research.- 10.1 Qualitative analysis.- 10.2 Modeling the location decision.- 11. Conclusions.- Basic research expenditures as a percentage of total research and development expenditures in major industrialized countries, 1971-1993.- Nominal and real industrial research expenditure in three countries (Germany, Japan, U.S.).- The relationship between the share of industrial research expenditures and the interest rate in Germany for three industries, 1965-1991.- Example of a Mission Statement.- Literature.