Canada’s Source of R&D Intelligence
Toronto - June 25, 2003 - Ontario companies dominate Canada's Top 100 Corporate R&D Spenders List 2003, released today by Research Infosource Inc. A total of 50 Ontario-headquartered companies made the list, holding 6 of the top 10 positions. Together Ontario companies spent $7.7 billion on R&D in fiscal 2002, down 14.2% from last year
#1-Nortel Networks retains its top position, but R&D expenditures decline by 29.8% and revenue falls by 38.8%.
#2-Magna International jumps two spots from last year with an impressive 60% increase in R&D spending.
#4-JDS Uniphase slides down two places, posting a 20.7% drop in R&D spending in face of a 65.5% drop in revenue.
#5-IBM Canada increases its R&D investment by 26.1% despite a modest 0.5% growth in revenue and moves up two spots from 2001.
#7-ATI Technologies drops one position even though the company increases its R&D investment by 12.1% in face of a slight 0.2% drop in revenue.
#9-Ericsson Canada slips 4 spots matching a 30.7% drop in revenue with a 25.6% drop in R&D spending.
Ontario companies are well-represented on Research Infosource's elite "100 Million Club", reserved for firms that invest $100 million or more in R&D activities. Of the 24 companies listed, 13 are headquartered in Ontario: Nortel Networks, Magna International, JDS Uniphase, IBM Canada, ATI Technologies, Ericsson Canada, Atomic Energy of Canada (#12), Apotex (#13) , Zarlink Semiconductor (#17), GlaxoSmithKline (#18), CAE (#20), Cognos (#21), Aventis Pasteur (#23).
Of the top firms ranked by research intensity (R&D as a percentage of revenue), two Ontario companies, Toronto-based GylcoDesign Inc. (#91) and Ottawa's World Heart Corporation (#74) are ranked among the top 10.
Three Ontario-based companies increased their R&D expenditures by 60% or more: Aastra Technologies (#76), Research in Motion (#29) and General Electric (#90).
Overall, Canada's Top R&D companies invested $10.9 billion on research and development activities in fiscal 2002, down 8.7% from last year's figure of $11.9 billion. A closer look at the numbers reveal a healthier picture. Nortel Networks' size and depressed results mask a positive underlying trend. With Nortel's figures included, total spending declined by 8.7%. Removing Nortel's results from the mix, R&D spending actually grew by 6.5% in 2002.
"The 'Nortel Effect' is felt strongly in Ontario", says Ron Freedman, CEO of Research Infosource Inc. "Omitting Nortel from the calculations, Ontario companies show a healthy 5.8% increase in R&D spending and a modest 2.6% decline in revenue."
Looking at the regional breakdown, Quebec's 24 companies invested $2.1 billion, a 7% increase from 2001. British Columbia's 16 firms posted $813.8 million in R&D expenditures, a jump of 13.1%. The Prairie provinces (9 Alberta and 1 Manitoba firm) invested $356.8 million, a slight 2.1% drop from 2001.
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 2003, based on over 600 companies, is slated for publication in July 2003. 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) 481-7070 ext. 25