Canada’s Source of R&D Intelligence
Total Spending Climbs to $11.9 billion - Positive Underlying Trend
Toronto - June 25, 2002 - Canada's Top R&D companies continued to increase their R&D spending in fiscal 2001 despite the year's chilly economic climate. According to Canada's Top 100 Corporate R&D Spenders List, released today by Research Infosource Inc, Canada's leading firms invested $11.9 billion in research and development for fiscal 2001, up a modest 3% overall from $11.5 billion in 2000. However, Nortel Networks poor performance masked a healthy underlying trend, other Top 100 spending rose by 23.3%. In fiscal 2000, an outstanding year, the Top 100 companies grew their R&D spending by 28.5%.
Still holding 1st place in R&D spending for fiscal 2001 is Nortel Networks ($5 billion), down 16.1% from 2000. With a nearly 200% jump in spending, JDS Uniphase ($504.6 million) moves up to 2nd spot from 8th. Even with a 32.9% increase in spending, Pratt and Whitney Canada ($440 million) slips to 3rd position from 2nd in 2000. Magna International ($359.2 million), showing a 45.7% growth in R&D spending, stands at in 4th place, down from 3rd in 2000. Ericsson Canada ($270 million) rounds out the top five with a 13.5% increase in R&D investments from 2000 to 2001.
"Even with a strong showing by JDS Uniphase, the figures for 2001 are depressed by Nortel Networks' $900 million drop in R&D spending", says Ron Freedman, CEO of Research Infosource Inc. "They went from $5.9 billion in 2000 to $5 billion in 2001. If we remove Nortel from the mix, R&D spending at the top firms rose by 23.3% from 2001 to 2002, reflecting a healthy performance trend in a stormy economic climate."
Overall, Canadian firms have demonstrated a growing commitment to R&D. Membership in Research Infosource's "$100 Million Dollar Club", companies that spent $100 million or more annually on R&D activities, stands at 23 for fiscal 2001. Together they accounted for fully 77% ($9.2 billion) of Top 100 R&D spending.
Twenty-five companies increased their R&D investment by 50% or more from 2000 to 2001. Calgary's Suncor Energy tops the list with a 650% jump. Next comes Global Thermoelectric, also based in Calgary, with a 452.4% increase, followed by Delano Technology in Markham at 396.8%. Pfizer Canada (202.1%) and Certicom (201%) round out the top five.
A number of well-known firms posted significant decreases in R&D spending from 2000 to 2001: Topping the list was Moore Corporation (-50.7%); followed by Genpharm (-43.1%); Corel (-40%); Falconbridge (-39.5%); Westaim (-35.4%); Schering Canada (-34.8%); Teck Cominco (-26.1%); Noranda (-22.9%); PMC Sierra (-22.7%); and GSI Lumonics (-21.2%) rounds out the bottom 10.
With Nortel's $5 billion of R&D spending, the Communication/Telecommunication Equipment sector posted $6.4 billion of total spending, putting it in first place among industry sectors. Communication/Telecommunication firms accounted for 54% of Top 100 spending in Fiscal 2001. Without Nortel, sector spending drops to $1.4 billion (20% of the total), compared with $1.3 billion in Pharmaceuticals/Biotechnology (18%), and $955 million in Software and Computer Services (14%). The Aerospace sector captured fourth place overall with $686 million of spending (10%).
Breaking the list down by province, 58 of the top 100 companies are headquartered in Ontario, 20 in Québec, 11 in B.C., 10 in Alberta and one in Manitoba.
The complete Canada's Top 100 Corporate R&D Spenders List is available on the Research Infosource website, www.researchinfosource.com. An in-depth Corporate R&D Spenders Report 2002, based on nearly 600 companies, is slated for publication in July 2002.
Research Infosource Inc., a division of The Impact Group, is Canada's source of R&D intelligence. Drawing from an extensive database, Research Infosource Inc. publishes Canada's Top 100 Corporate R&D Spenders List, Canada's Top 50 Research Universities List, and specialized reports.
Information: Ron Freedman, CEO, Research Infosource Inc. (416) 481-7070 ext. 31
Janet Sandor, Director of Communications (416) 802-5526