These highlights are based on mail responses to a National Science Foundation (NSF) inquiry to its Industrial Panel of Science and Technology, and interviews with other research and development (R&D) officials. Although it is not intended to be a statistically valid sample of R&D firms, NSF's Industrial Panel includes representatives from all major R&D-performing industries. Of the 84 companies contacted, replies were received from 58 firms, of which 46 conducted R&D abroad. These companies account for approximately 50 percent of R&D conducted overseas by U.S. firms. The 46 responding R&D directors discussed factors influencing their firms' decisions to engage in R&D activities abroad and provided projected changes in the growth of overseas R&D activities during 1983 and 1984. Findings are reported under these categories: characteristics of firms funding R&D abroad; trends in R&D funding; factors underlying the performance of R&D abroad; and outlook. Among the findings highlighted are those indicating that the U.S. R&D spending overseas will remain level in current dollars during 1983 and rise by approximately 7 percent in 1984 (provided certain assumptions are met) and that reasons for conducting R&D overseas were site-specific manufacturing/sales needs and opportunities to participate in scientific advances made in other countries. (JN)