Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Economy Lab

Delving into the forces that shape our living standards
Best Business Blog, EPPY awards, 2011 and 2012

Entry archive:

Economy Lab has moved

Only Globe Unlimited members will now have access to a wide range of insightful commentary
and analysis on the economy and markets previously offered on this page.


Globe Unlimited subscribers will be able to read these columns,
written by some of Canada’s most deeply respected economists,
such as Christopher Ragan, Sheryl King, Andrew Jackson, and Clement Gignac,
as part of our ROB INSIGHT section.


All of our readers will still be able to browse the Economy Lab archives and read our
broader coverage of economic data and news by accessing their 10 free articles a month.


Learn more about Globe Unlimited and how to subscribe.

Canadian businesses plan to spend $15.5-billion on R&D this year, up 0.9 per cent from $15.4-billion in 2011, Statistics Canada said Thursday. (Alexander Raths/Getty Images/iStockphoto)
Canadian businesses plan to spend $15.5-billion on R&D this year, up 0.9 per cent from $15.4-billion in 2011, Statistics Canada said Thursday. (Alexander Raths/Getty Images/iStockphoto)

R&D getting a mere flick from corporate cash hoard Add to ...

Canadian companies may have plenty of cash, but they remain very cautious about investing it in research and development.

Canadian businesses plan to spend $15.5-billion on R&D this year, up 0.9 per cent from $15.4-billion in 2011, Statistics Canada reported Thursday.

But that’s still nearly 7 per cent below the private sector’s pre-recession peak, based on spending intentions.

More Related to this Story

Experts have regularly expressed concern about lagging R&D spending in Canada, particularly by the private sector. Developing new products and methods helps boost productivity.

As well, the business sector’s share of projected R&D spending is also falling compared to governments, universities and non-profit organizations. Spending this year by businesses is expected to make up 52 per cent of all R&D spending, down from 58 per cent a decade ago.

Overall R&D spending is expected to reach $30-billion this year, up just 0.3 per cent from 2011.

Behind businesses, the second largest R&D spenders are universities and other post-secondary institutions. They plan to increase spending by 1 per cent to $11.5-billion.

The federal government plans to spend 7.3 per cent less this year, or $2.5-billion – a decrease that Statscan attributes to end of stimulus spending during the recession.

The country’s overall spending on R&D as a percentage of gross domestic product was 1.74 per cent in 2011 – well below many other leading developed countries. In 2010, Canada ranked fifth among the Group of Eight countries with a ratio of 1.85 per cent.

 

In the know

Most popular videos »

Highlights

More from The Globe and Mail

Most popular