Spending on industrial research and development rises again

Ottawa, ON — Industries intend to increase their spending on research and development (R&D) for the third consecutive year, according to the latest report on industrial R&D from Statistics Canada covering the period from 2001 to 2005.

Spending intentions are forecast to increase 1.6% to $13.8 billion. Even so, such spending will still remain 3.3% below the peak of $14.3 billion in 2001.

In 2002, R&D spending fell an unprecedented 6.6% as a result of decreases in the key information and communications technology (ICT) sector, specifically the communications equipment manufacturing industry.

In fact, between 2001 and 2005, R&D spending excluding the ICT sector increased 12.7% while R&D spending in the ICT sector fell 21.5% during this period.

The two largest contributors to the anticipated gain in spending intentions in 2005 are the aerospace products and parts industry, where spending is forecast to rise 3.6%, and scientific research and development services, where it is expected to increase 3.3%.

Despite declines in spending between 2002 and 2004, the communications equipment manufacturing industry still allocates the largest amount to R&D, accounting for 12% of the total. It is followed by the pharmaceutical and medicine manufacturing industry, which accounts for nearly 9%.

A new estimation system for outstanding administrative data has improved the quality of data on expenditures and personnel for 2003, 2004 and 2005.