With the globalization process in the recent two decades, more and more countries are focusing on improving their technology to get more comparative advantages than other countries. The purpose of this paper is trying to explain the causality between foreign direct investment and R&D. We will analysis seven developed countries (Denmark, Finland, Ireland, Japan, the Netherland, the United Kingdom, and the United States) and use pooling data analysis to investigate this causality during the last 35 years.