This article investigates in the context of ECE, whether and to what extent this increasein automotive production outside traditional core areas has also led to the development ofresearch and development (R&D) competencies. I argue that so far, R&D developmenthas been limited in the ECE automotive industry and that, with some notable exceptions,foreign control over the ECE automotive industry and the spatial organization of international automotive R&D undermine chances for the successful development of R&D inthe ECE automotive industry.