Canada’s Source of R&D Intelligence
Attention Business, Technology and Economics Editors and Reporters
Canada's Research and Development Spending Beginning to Recover Increase of 3.0% According to Canada's Top 100 Corporate R&D Spenders List 2005
Toronto - October 18, 2005 - Following two years of decline, signs are that corporate spending on research and development (R&D) began to recover in Fiscal 2004. Canada's top corporate R&D companies invested $11.3 billion in R&D activities in Fiscal 2004, an increase of 3.0% over Fiscal 2003 according to Canada's Top 100 Corporate R&D Spenders List 2005, released today by Research Infosource Inc. This rebound comes after a two-year downturn in R&D spending.
The top 6 companies maintained their positions this year. Nortel Networks Corporation continued to hold its 1st place finish on the Top 100 List with R&D expenditures of $2.5 billion in Fiscal 2004. While still reporting a decrease in spending (-7.2%), this was a significant improvement over its R&D spending decrease of the previous year (-20.4%). Bell Canada kept its 2nd place with $1.45 billion in spending, although reporting a slight drop from 2003 of -2.6%. Increasing its spending by 9.4% over last year, gave Magna International Inc. with $689.8 million, a 3rd place finish. Also posting an increase in spending of 9.9% over 2003, Pratt & Whitney Canada Corp. came in 4th with $465 million in research spending. ATI Technologies Inc., which placed 5th overall this year, had the largest spending increase (18.3%) of the top 6 finishers with $389.1 million up from $329 million in Fiscal 2003. IBM Canada Ltd. rounded off the top 6 placed companies with $334 million in R&D spending.
Once again, the Fiscal 2004 results qualified 21 companies for membership in Research Infosource's $100 Million Club (companies that spent $100 million or more on R&D in Fiscal 2004). This elite group of companies accounted for 71% of Top 100 spending, or $8.1 billion. Including Nortel's results, R&D spending by the $100 Million Club increased by 2.3% over 2003. However, removing Nortel Networks from the equation, the Club posted an even healthier increase of 7.4%.
In Fiscal 2004, the top 7 gainers (companies that increased their R&D spending the fastest) all posted R&D gains in excess of 110%: ratiopharm inc, Shell Canada Limited, Cascades Inc., Vasogen Inc., Cardiome Pharma Corp., EnCana Corporation and Lorus Therapeutics Inc. Angiotech Pharmaceuticals, Inc., Neurochem Inc. and Sierra Wireless, Inc. all reported R&D spending increases in excess of 60%. "We are cautiously optimistic that corporate R&D has turned the corner", said Ron Freedman, CEO of Research Infosource Inc.
By industry sector, the Communications/telecommunications equipment sector again dominated in Fiscal 2004 led by Nortel Networks' huge investment in R&D representing more than a quarter of total R&D spending (28%). The Pharmaceutical/biotechnology sector came 2nd with 17% of total spending. Led by Bell Canada's very significant R&D investment, the Telecommunication services sector was 3rd representing 14% of total R&D spending in Fiscal 2004. This year, the Aerospace sector jumped ahead of the Software and computer services with a 4th place finish with 8% of total spending. The Software and computer services sector was 5th. Without Nortel's influence, the Pharmaceutical/biotechnology sector jumps into the top spot with 21% of all Top 100 spending, while Communications/telecommunications equipment drops to 6th place with only 7% of total spending.
Regionally, the 43 companies headquartered in Ontario accounted for just over half (55%) of all R&D spending with $6.2 billion. This represented a very slight decrease from 2003 (-0.3%). Quebec's 31 companies spent $3.86 billion in Fiscal 2004, up 5.2% over 2003. This represented 34% of total R&D expenditures. The 14 British Columbia-based firms invested $794 million, an increase of 6.1% and which represented 7% of the total. The 9 Alberta firms accounted for $389.6 million or 3% of Top 100 spending and posted the largest regional increase of 33.1% over 2003. Removing Nortel Networks from the Ontario calculations, 42 companies invested $3.6 billion, 42% of the total, an increase of 5.1%.
The complete Canada's Top 100 Corporate R&D Spenders List 2005 is available on the Research Infosource website, www.researchinfosource.com. An in-depth Canada's Top Corporate R&D Spenders Report 2005, based on over 650 companies, is slated for publication later this year. 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.
-30-
Information: Ron Freedman, CEO, Research Infosource Inc. (416) 481-7070 ext. 31
Janet Sandor, Director of Communications (416) 481-7070 ext. 25
Toronto - October 18, 2005 - Following two years of decline, signs are that corporate spending on research and development (R&D) began to recover in Fiscal 2004. Canada's top corporate R&D companies invested $11.3 billion in R&D activities in Fiscal 2004, an increase of 3.0% over Fiscal 2003 according to Canada's Top 100 Corporate R&D Spenders List 2005, released today by Research Infosource Inc. This rebound comes after a two-year downturn in R&D spending.
The top 6 companies maintained their positions this year. Nortel Networks Corporation continued to hold its 1st place finish on the Top 100 List with R&D expenditures of $2.5 billion in Fiscal 2004. While still reporting a decrease in spending (-7.2%), this was a significant improvement over its R&D spending decrease of the previous year (-20.4%). Bell Canada kept its 2nd place with $1.45 billion in spending, although reporting a slight drop from 2003 of -2.6%. Increasing its spending by 9.4% over last year, gave Magna International Inc. with $689.8 million, a 3rd place finish. Also posting an increase in spending of 9.9% over 2003, Pratt & Whitney Canada Corp. came in 4th with $465 million in research spending. ATI Technologies Inc., which placed 5th overall this year, had the largest spending increase (18.3%) of the top 6 finishers with $389.1 million up from $329 million in Fiscal 2003. IBM Canada Ltd. rounded off the top 6 placed companies with $334 million in R&D spending.
Once again, the Fiscal 2004 results qualified 21 companies for membership in Research Infosource's $100 Million Club (companies that spent $100 million or more on R&D in Fiscal 2004). This elite group of companies accounted for 71% of Top 100 spending, or $8.1 billion. Including Nortel's results, R&D spending by the $100 Million Club increased by 2.3% over 2003. However, removing Nortel Networks from the equation, the Club posted an even healthier increase of 7.4%.
In Fiscal 2004, the top 7 gainers (companies that increased their R&D spending the fastest) all posted R&D gains in excess of 110%: ratiopharm inc, Shell Canada Limited, Cascades Inc., Vasogen Inc., Cardiome Pharma Corp., EnCana Corporation and Lorus Therapeutics Inc. Angiotech Pharmaceuticals, Inc., Neurochem Inc. and Sierra Wireless, Inc. all reported R&D spending increases in excess of 60%. "We are cautiously optimistic that corporate R&D has turned the corner", said Ron Freedman, CEO of Research Infosource Inc.
By industry sector, the Communications/telecommunications equipment sector again dominated in Fiscal 2004 led by Nortel Networks' huge investment in R&D representing more than a quarter of total R&D spending (28%). The Pharmaceutical/biotechnology sector came 2nd with 17% of total spending. Led by Bell Canada's very significant R&D investment, the Telecommunication services sector was 3rd representing 14% of total R&D spending in Fiscal 2004. This year, the Aerospace sector jumped ahead of the Software and computer services with a 4th place finish with 8% of total spending. The Software and computer services sector was 5th. Without Nortel's influence, the Pharmaceutical/biotechnology sector jumps into the top spot with 21% of all Top 100 spending, while Communications/telecommunications equipment drops to 6th place with only 7% of total spending.
Regionally, the 43 companies headquartered in Ontario accounted for just over half (55%) of all R&D spending with $6.2 billion. This represented a very slight decrease from 2003 (-0.3%). Quebec's 31 companies spent $3.86 billion in Fiscal 2004, up 5.2% over 2003. This represented 34% of total R&D expenditures. The 14 British Columbia-based firms invested $794 million, an increase of 6.1% and which represented 7% of the total. The 9 Alberta firms accounted for $389.6 million or 3% of Top 100 spending and posted the largest regional increase of 33.1% over 2003. Removing Nortel Networks from the Ontario calculations, 42 companies invested $3.6 billion, 42% of the total, an increase of 5.1%.
The complete Canada's Top 100 Corporate R&D Spenders List 2005 is available on the Research Infosource website, www.researchinfosource.com. An in-depth Canada's Top Corporate R&D Spenders Report 2005, based on over 650 companies, is slated for publication later this year. 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