A New York Times article (Dec 2, 2011) describes the European research fund, Horizon 2020, set to provide $108 billion in funding from 2014 to 2020. But this funding, aimd at innovations in food, health, transport, clean energy etc, requires initial deployment of the technology in Europe, potentially creating manufacturing there.  What are the implications for US manufacturers wanting to avail of this funding – is the constraint worth the funding? How will it impact initial vs steady state supply chain structure for new products that have to conform to the constraint ? Will a market first in Europe constraint be sufficient to cause companies to manufacture in Europe, if that would not be their unconstrained choice ?