For some time now, there have been different and conflicting signals regarding research and development (R&D) in the Netherlands. On the one hand, the innovative position of the Netherlands would appear to be declining whereas on the other hand it seems be on the increase. To address these issues, this article gives an overview of recent trends in corporate R&D in the Netherlands. In doing so, it combines a macro economic perspective, based on aggregated national data, with a micro perspective, based on the managerial trade-offs in organising the R&D process. It is through this combination of perspectives that we can create some new insights in how the presumed internationalisation of R&D should be interpreted, as well as in choices made by firms on the physical location of their R&D activities. We conclude by formulating some implications for innovation policy with potential relevance to other countries as well.