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| Canada’s source of corporate R&D intelligence | ||
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For Immediate Release
Toronto - August 28, 2001 - Canada's Top Corporate R&D Spenders invested $11.9 billion in research and development in 2000, according to Canada's Top Corporate R&D Spenders Report published by Research Infosource Inc. (www.researchinfosource.com). This is a 27.8% increase over 1999 for the 330 companies tracked in the report.
Three industries - Communications/Telecommunications Equipment, Pharmaceuticals/Biotechnology, and Software and Computer Services led the way, accounting for over 70% of all Canadian corporate R&D spending in Fiscal 2000. Together they invested over $8.8 billion. The top five spenders for 2000 were: First, Communications/Telecommunications Equipment with $6.9 billion, Second, Pharmaceuticals/Biotechnology with $1.2 billion, Third, Software and Computer Services with $750, million, Aerospace was fourth with $604 million, and Electronic Parts and Components rounds out the top 5 sectors with $450 million.
These top three industry sectors also led the pack in research intensity (R&D spending as a percent of revenues). Pharmaceuticals/Biotechnology was out front with 17.7%, followed by Communications/Telecommunications Equipment at 13.2%, and Software and Computer Services with 11.5%.
Of the 23 industries monitored by Research Infosource, Energy and Oil and Gas decreased R&D spending by over 5% from 1999 to 2000 even though they increased revenues. Other sectors bucked the trend and increased R&D spending in the face of declining revenues: Mining and metals (10.1% decrease in revenue and 26.7% increase in R&D spending) and Machinery (0.9% decrease in revenue and 22.4% increase in R&D spending).
Looking at R&D growth from 1999 to 2000 by province, B.C. firms registered the highest rate of growth at 73.5%, next came Ontario with a 29.5% increase, Alberta came in with 16.4%, while Québec increased outlays by only 8.7%.
Overall research-intensity (R&D as a percent of revenue) for Canadian companies in Fiscal 2000 was 3.4% up from 3.3% in 1999. For foreign subsidiaries, however, research intensity was more than double, at 8.9% in 2000, up from 8.0% in 1999 - increasing nearly 4 times faster than Canadian firms.
Spending over $5.9 billion on R&D in 2000, Nortel Networks eclipsed other firms in the report. With Nortel, the Communications/Telecom equipment sector ranked highest in total R&D outlay, with the Pharma/Biotech sector a distant second. Without Nortel's influence, the Pharmaceutical/Biotechnology industry would have moved into first place by over $200 million.
"With the current decline in the revenues in the IT sectors, Fiscal 2001 could show a significant decrease in R&D spending in these areas", says Ron Freedman, CEO of Research Infosource Inc. "The Pharmaceutical/Biotechnology sector appears to be on a roll and may partially compensate for cuts in IT."
Research Infosource Inc. a division of The Impact Group, tracks the R&D activities of the leading companies in Canada through its Canadian Corporate R&D Database, which contains information on over 300 firms. The complete report is available for purchase at www.researchinfosource.com.
The Impact Group is one of Canada's leading consulting firms specializing in strategic planning, policy analysis & development, research & evaluation, communications & marketing, and training & education, for organizations concerned with science, technology, and innovation.
Information: Ron Freedman, CEO, Research Infosource Inc.(416) 481-7070 ext. 31 |
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