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In this paper, the authors are using 1994-2003 panel data collecting from the U.S. and Japan R&D investment abroad in 32 host countries , analysis the location decisions of oversea R&D from the home country and the host country .We find there are different investment characters by the different home country whereas they have commonness. The technological capabilities of the host country are important factor while it has less effort in FDI. More stabile in politics and freer in economy may help host country to absorb more oversea R&D. The TNCs from American pay more attention to host countries' scientific and technological capabilities and potentials, for most of their oversea R&D to setup global R&D system. While the TNCs from Japan, following the advanced technology and using the host countries' lower scientific manpower are their main purposes. The scientific and technological capabilities of developed host countries and high quality with inexpensive scientist of developing host countries are its focus. For intellectual property, matching their investment objectives, the United States enterprises hoped IPP in the developing host country are better protected, and contrary to the developed countries. But Japanese companies pay less attention to IPP of host country.