R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge. In this chapter, we discuss the motivations and implications of this type of FDI for low- and middle-income countries, building on a critical review of the existing literature, and analyze the trajectory of R&D FDI during the period 2003-2017 by region and industry. The data is used as a point of departure to discuss potential policies specially tailored for low- and middle-income countries and their capacity to attract and anchor R&D related FDI for technological catch up. The chapter concludes with an outline of a future research agenda.