Due to the strong evolution of technology, this research focuses on the determinants of research and development (R&D) in Western Europe, using a sample of 548 companies. To achieve this purpose, the panel data methodology was used, specifically the generalized method of moments (GMM) system estimation method proposed by Arellano and Bover (1995) and Blundell and Bond (1998). The results obtained allow us to conclude that the intangible assets, specifically the satisfaction of human resources, are crucial in R&D, as well as the use of synergies due to the larger dimension, which can lead the largest companies to take advantage of better and differentiated sources of financing. This result is corroborated by the significant and negative sign of financial leverage, which suggests that R&D has to be achieved with alternative sources of financing to bank loans, such as venture capital or via the capital market.