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Global R&D is in its infant stages. Senior executives and their organizations need to develop deeper understanding of the opportunities and challenges of off-shoring R&D. While global pressure will continue to mount to deliver more value at ever lower cost, the labor cost arbitrage break in countries such as China or India will not last forever. The fundamental challenge is to use the current low-cost advantage to build rapidly a sustainable technology, product and service advantage. This requires the development of a balanced local growth strategy that is well adapted to the regional strengths while ensuring a seamless global integration of people, organizations, and processes. This paper focuses on the build-up of GM's R&D activities in India with an emphasis on research in one of the key thrust areas in GM R&D - Automotive Electronics, Controls, and Software. Lessons learned apply also to development.