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Spending on industrial research and development 2012 (intentions)

  1. Businesses in Canada anticipate spending $15.5 billion on industrial research and development (R&D) in 2012, advancing slightly (0.9%) from 2011. Industrial R&D spending remains below its most recent peak of $16.8 billion attained in 2007 (table 1).
  2. The recovery of industrial R&D spending after three years of decline will be driven by growth in the manufacturing sector, up by $228 million (3.1%) from 2011 to $7.6 billion in 2012. Within the manufacturing sector, communications equipment intends to spend $1.5 billion on R&D in 2012 up by $129 million from 2011. Overall, in 2012 businesses in the services sector anticipate spending slightly less on R&D than they did in 2011 (down 0.2% or $12 million) at $6.8 billion with most of the decline occurring in scientific research and development services (down by $22 million or 1.3%) (table 5-1).
  3. For 2012, respondents indicated that 61% of total industrial R&D spending will be concentrated in the wages and salaries for R&D personnel, a level last seen in 2006 (60%). Between 2007 and 2011 this ratio ranged from 57% to 60%. In 2000, this ratio stood at 47%, its lowest level since 1994 (CANSIM 358-0024).
  4. Additionally, businesses in Canada anticipate dedicating just 5% of their 2012 total industrial R&D expenditures to purchases of land, buildings and equipment. The most recent peak in the importance of capital expenditures to total industrial R&D spending occurred in 2001 at 11%, since 2009, this ratio has been under 6% (CANSIM 358-0024).
  5. In 2010, the most recent year for which provincial data are available, industrial R&D spending continued to occur predominately in Ontario ($6.8 billion) and Quebec ($4.7 billion). R&D spending in Quebec advanced slightly by 0.5% from 2009, while spending in Ontario contracted, down by 4.2%. All other provinces saw except Manitoba (up by 1.4%) saw decreases in industrial R&D spending from 2009 (table 5-2).
  6. Industrial R&D activities provided employment for just over 136,203 full-time equivalents in 2010, down 11.4% (153,739) from 2009 (table 8-4).
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