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Spending on industrial research and development 2010 (intentions)

  1. Businesses in Canada anticipated spending just over $15.6 billion on industrial research and development (R&D) in 2011, a 5.0% increase from 2010. In 2007 industrial R&D spending peaked at $16.8 billion, with a previous peak in 2001 of $14.3 billion (table 1).
  2. Between 2010 and 2011, industrial R&D spending in the manufacturing sector is anticipated to increase by 8.0% from $7.1 billion in 2010 to $7.7 billion in 2011. For the services sector, an increase of 3.1% is anticipated, from $6.6 billion in 2010 to $6.8 billion in 2011 (table 5-1).
  3. The established pattern of financing for industrial R&D continued in 2009, the most recent year for which data are available. R&D performers still finance the majority (79%) of their own industrial R&D. Industrial R&D performers received (13%) of their funding from foreign sources. Funds from the federal government accounted for 2% while the remainder came from other Canadian sources (table 5-8).
  4. In 2011, about one-half of all industrial R&D performance was concentrated in the top 100 firms ranked by intramural R&D spending, down from around two thirds in the mid-1980s. In contrast, about one-half of the industrial R&D was performed by the top 25 firms in the mid-1980s; this concentration dropped to about 30% by 2006 where it has remained. This indicates that industrial R&D performance has dispersed across a greater number of performers over the past three decades. The drop-off in concentration in the top 100 R&D performing firms coincides with the decline of the information and communication technology industries (table 4).
  5. R&D activities provided employment to 149,923 full-time equivalent (FTE) positions in 2009, the most recent year for which the R&D employment data are available. Professionals such as scientists, engineers and senior R&D administrators comprised 58% (or 86,964 FTE) of these highly qualified personnel (table 8-2).
  6. Expenditures made for intellectual property in 2009 amounted to $435 million, of which patents represented 31% at $133 million. Payments received for intellectual property in 2009 amounted to $741 million and patents accounted for almost three quarters of the inflow of funds (table 12).
  7. In 2009, Canadian firms performing R&D dedicated $1.3 billion to energy R&D with a particular emphasis on fossil fuels ($928 million). Within the fossil fuels, the leading expenditures on energy R&D were related to oil sands and heavy crude oil technologies for surface and sub-surface production and separation of bitumen and tailings management at $478 million with crude oils and natural gas exploration, production and storage following, at $388 million (table 13).

Note: Data for 2009 on employment in R&D activities, sources of funds for R&D, industrial R&D spending distributed by provinces, extramural R&D payments and technology payments and receipts are also available. Spending intentions for 2010 and 2011 are preliminary indications of the direction of R&D investments. Also available are data for 2009 from the Energy Research and Development Expenditures by Area of Technology survey.

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