Research and development in Canadian industry: Intellectual property, 2022 (final)
Released: 2024-10-17
In 2022, businesses in Canada that were engaged in research and development (R&D) activities reported technology receipts of $13.0 billion from the sale of software-related products, technical assistance and know-how, and intellectual property. This represents an increase of 46% (+$4.1 billion) from 2021 ($8.9 billion). By contrast, payments to purchase intellectual property, software, and technical assistance and know-how by R&D active businesses were unchanged at $2.2 billion.
The rise in receipts was primarily driven by software-related transactions, which increased $3.0 billion from 2021 to $9.5 billion in 2022 ($8.4 billion from the sale of original software and $1.1 billion from the sale of off-the-shelf software). This was followed by sales of technical assistance and know-how ($2.1 billion) and intellectual property ($1.4 billion).
Payments for intellectual property amounted to $1.1 billion in 2022, half of the $2.2 billion spent on total technology purchases. Intellectual property payments surpassed purchases of software ($752 million) and technical assistance and know-how ($409 million). These intellectual property payments were attributed to the use of patents, copyrights, trademarks, industrial design, and integrated circuit topography. The largest shares of intellectual property payments were for the use of trademarks ($676 million) and patent-protected ideas ($330 million).
International sales greatly exceeded payments made
In terms of domestic and international flows of funds for technology payments, receipts from sales to organizations outside Canada reached $10.1 billion in 2022, far surpassing the $1.5 billion in payments to foreign organizations. This resulted in a substantial net inflow of $8.6 billion in 2022.
Chart 1
Flows of technology payments: Payments out of Canada and receipts into Canada, 2018 to 2022
Growth in sales tied to unaffiliated businesses
Technology transactions can occur within a corporate network of related businesses or with entirely unrelated businesses or organizations. In 2022, receipts came predominantly from sales to unaffiliated organizations, totalling $10.0 billion compared to $3.0 billion from affiliated companies. In contrast, payments were evenly divided by business affiliation, with $1.1 billion going to affiliated businesses, and the same amount going to unaffiliated businesses.
Chart 2
Net flow of funds for technology, by affiliation, 2018 to 2022
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Note to readers
The estimates do not represent all trade in intellectual property rights or informal technical assistance in Canada.
These estimates of payments made and received for intellectual property, software and technical assistance were derived from data collected from companies in the sample for the Annual Survey of Research and Development in Canadian Industry. Although the data come from a sample survey, the responses are self-representing and are not weighted for these particular variables given the volatile nature of intellectual property-related activities. Therefore, the estimates represent intellectual property commercial transactions only for the companies in Canada with research and development (R&D) activities that responded to the survey.
R&D-active businesses are companies in the sample for the Annual Survey of Research and Development in Canadian Industry that funded or performed R&D during the reference period or in the previous year.
Because of differences in the scope of surveyed enterprises, the data on international intellectual property trade in this release are different and are not directly comparable with other Statistics Canada data on international transactions in services.
Intangible property
Newly created knowledge can be formally protected through registered intellectual property instruments (patents; copyrights; trademarks; industrial designs; and integrated circuit topography designs). Other forms of intangible property include original software; packaged off-the-shelf software; databases with a useful life exceeding one year; and other technical assistance, industrial processes and know-how. Technology payments can be made to, or received from, affiliated or non-affiliated organizations within or outside Canada. These technology payments can be for intellectual property licensing, consultation fees and one-time sales.
Intellectual property protection involves the disclosure and registration of an organization's ideas (often the result of R&D, such as new or improved products and processes) to confer legal rights on these disclosed ideas. This can facilitate their subsequent commercial exploitation through sales, licensing agreements and the provision of technical assistance to clients, while impeding others from unauthorized use.
Affiliated
An organization that, directly or indirectly through one or more intermediaries' control, is controlled by, or is under common control with, another organization.
Non-affiliated
An organization that does not control, is not controlled by or is not under common control with another organization, either directly or indirectly through one or more intermediaries.
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Contact information
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