Canadian corporate R&D spending advances 4.1%
Bombardier is Canada’s largest spender at $2.2 billion.
TORONTO – Canada’s leading firms raised their combined research spending to $12.5 billion in 2013, an increase of 4.1% over 2012, according to the annual Canada’s Top 100 Corporate R&D Spenders list by Research Infosource Inc.
In total, R&D spending increased at 57 companies, fell at 41, and was flat at 2 others.
“The 2013 result is respectable,” said Ron Freedman, CEO of Research Infosource. “But, research spending growth lagged last year’s 12.6% improvement even though corporate revenues were up by 7%”.
The top spender this year is Bombardier Inc., which holds on to its first-place ranking with $2.2 billion of research spending – an increase of 15.4% from the previous year.
BlackBerry Ltd. held on to 2nd place even though its R&D spending dropped by -12.2% to $1.3 billion.
Magna International jumped 3 places in the ranking to third overall with a 12% spending increase to $576.8 million. Several firms displayed especially strong growth in their R&D spending in with triple-digit year-on-year increases, including: Redknee Solutions Inc. (278.0%), TransCanada Corporation (203.9%), CGI Group Inc. (164.1%) and Valeant Pharmaceuticals International Inc. (104.3%).
Ontario was home to 43.7% of all Top 100 research spending, compared with 39.9% in Quebec, 11.3% on the Prairies, and 5.1% in BC. Spending declined in Ontario (-2.7%), but increased in Quebec (12.4%), BC (11.2%), and the Prairies (2.7%).
Research Infosource included 28 firms in its $100 Million Club, an elite group that spent over $100 million on research in Fiscal 2013. New to the Club are CGI Group Inc. ($252.1 million), Valeant Pharmaceuticals International ($161.5 million) and MacDonald, Dettwiler and Associates ($116.6 million).
“Corporate R&D performance continues to lag policymakers’ expectations. Next year’s performance will be conditioned by broader economic prospects, in particular: the value of the loonie and the pace of world economic growth. In the medium term, spending needs to be reflected in new products and improved productivity,” added Freeman.