Globalization has led to companies investing in research and development (R&D) across different countries, not just in advanced economies. The choice of location for these investments is influenced by the type of investment strategy (exploration or exploitation) and the host country's level of development. A study of 588 R&D-related projects in pharmaceutical and biotech industries found that a country's innovation framework and capabilities impact location decisions, but this impact depends on the combination of investment strategy and type of economy. This research suggests that policies should focus on strengthening connections between multinational enterprises and local actors, as well as national science, technology, innovation, and education initiatives.