A questionnaire distributed to domestic factories belonging to Japan’s electric and electronics industry revealed three results: (1) regardless of the significant shift of production functions to sites outside Japan, approximately 90% of domestic locations are able to complete production functions to a high degree; (2) approximately 54% of locations are able to complete design functions to a high degree, whereas 24% are able to do so to a low degree; and (3) domestic production sites that are able to completely fulfill multiple functions (design/production engineering/production) have the following traits: 1) they are superior to their rivals at delivery accuracy and speed and better at responding to market needs and 2) they are superior to their transplants in China/ASEAN countries at making proposals and developing new products. This suggests that multi-functional factories are superior to their transplants in the area of new product proposal and development.