Research and development in Canadian industry: Flash estimates, 2019 (actual), 2020 (preliminary) and 2021 (intentions)
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Released: 2021-05-05
Research and development (R&D) is a key factor that drives innovation among businesses. Given the importance of R&D, advance estimates of industrial in-house R&D spending intentions are being provided for 2021 and 2020, as well as initial broad estimates for 2019.
Advance results indicate that industrial R&D in-house expenditures rose 3.2% (to $20.4 billion) in 2019 from revised 2018 estimates ($19.8 billion). Expenditures are expected to fall again slightly in 2020 (to $19.8 billion), then regain all their loss in 2021 (to $20.4 billion).
Chart 1
Total in-house R&D spending, 2014 to 2021
In addition to performing R&D, businesses outsourced $4.2 billion worth of R&D activities in 2019, down from $4.9 billion in 2018. Outsourced R&D expenditures are anticipated to drop to $3.8 billion in 2020, then rebound to $4.2 billion in 2021.
Chart 2
Total outsourced R&D spending, 2014 to 2021
Early findings indicate that 12% of businesses anticipated changes to their in-house R&D activities as a result of COVID-19. Among them, 18% expected increases in in-house R&D activities, almost half expected decreases, and the remainder were unsure of the impact. Businesses were even less certain of impacts on outsourced R&D spending. Of the 7% of businesses that anticipated an impact on outsourced R&D, 1/10 expected increases, compared with three times that amount which expected decreases, while the rest were uncertain what the final impact would be.
A full release of R&D spending by businesses in Canada will be occur in summer 2021.
Note to readers
The direction of changes are based on estimates of research and development (R&D) expenditures in current dollars.
These flash estimates are a special product published in the context of the COVID-19 pandemic to provide Canadians with timely information on R&D in the business sector. The official estimate of industrial R&D for the reference year 2019, which will be based on a more complete set of survey and administrative data, is scheduled for release on July 26, 2021.
Contact information
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