Canada’s Source of R&D Intelligence
Leading Firms' Spending Up by 4.7% Despite Drop in Revenues
According to Research Infosource Inc.
Toronto - September 4, 2002 - Canada's Top Corporate R&D Spenders invested $13.3 billion in research and development in fiscal 2001 according to Canada's Top Corporate R&D Spenders Report 2002 published by Research Infosource Inc. This represents a 4.7% increase for the 581 companies tracked in the report - impressive in the face of a 2.7% decline in revenue. Canada's Top 100 Corporate R&D Spenders List 2002 published in June focuses on the largest firms, while the full report includes information on medium and small companies as well.
"The overall R&D picture in 2001 was very positive", says Ron Freedman, CEO of Research Infosource Inc. "With R&D expenditures of $5 billion, Nortel Networks dominated Canada's R&D scene. Removing Nortel from our analysis reveals a healthy underlying 22.9% increase in R&D spending for fiscal 2001."
Research intensity (R&D as a percent of revenues) for all 581 companies in the report increased slightly from 3.7% in 2000 to 3.9% in 2001. However, foreign subsidiaries posted a research intensity growth of nearly double that of Canadian firms. Canadian companies moved from 3.5% in fiscal 2000 to 3.8% in fiscal 2001, while the foreign subsidiaries posted 5.2% in 2001 up from 4.7% in 2000.
Looking at R&D investment by region, Ontario companies accounted for 73% of the total in fiscal 2001, Québec 15%, British Columbia 7%, and Prairies 4%. Québec companies led the pack in R&D spending growth, showing a 33.3% increase in 2001. British Columbia came second with a 19.8% jump, and the Prairies were a close third, with a 16.2% growth in R&D expenditures. R&D investment by Ontario companies dropped 1.6% in fiscal 2001. Removing Nortel from the calculations, Ontario would have pushed B.C. into third place by posting an increase of 19.9% in R&D expenditures.
Breaking down R&D spending by industry sector, the strongest increases were seen in Transportation (115.2%), Forest and Paper Products (76.1%), Automotive (43.8%), Telecommunications Services (43.5%) and Energy (31.5%). Spending decreases were posted in Electronic Parts and Components (- 6.8%), Communication/Telecomm Equipment (-6.5%), Environment (-5%), Machinery (-2.3%), and Electrical Power and Utilities (-2.1%).
Three sectors, Communications/Telecommunications Equipment, Pharmaceuticals/Biotechnology, and Software & Computer Services dominated the R&D scene, accounting for 71% of R&D spending, investing $9.5 billion on R&D in 2001. Including Nortel the Comm/telecom sector spent $6.5 billion, while the second place Pharma/biotech sector invested $1.6 billion. Removing Nortel's spending from the equation nudges Pharma/biotech into first place.
Research Infosource Inc., www.researchinfosource.com, a division of The Impact Group, is Canada's source of R&D intelligence. 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) 481-7070 ext. 25