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This paper studies what determines investment in R&D at major automobile companies of Japan and Germany as of from 2001 to 2015. For that purpose, accounting records and OECD and WWID databases were used. Based on regression models of panel data with random effects and fixed effects, some factors considerably influencing upon investment in R&D were found out. Such factors include: the total assets, amount of exports, market share, return on total assets, total revenue, profits and the income share of the wealthiest residents. Key words: factors of investment in R&D, automobile industry, Japan, Germany. JEL Classification: G39