For additional information relating to this article, please contact:
August 19, 2014INDUSTRIAL RESEARCH AND DEVELOPMENT CHARACTERISTICS & INTENTIONS, 2014 Today, Statistics Canada released Industrial Research and Development characteristics, 2014 (intentions) with new data on expected R&D spending in 2014 and characteristics of industrial R&D spending in 2012.
Spending intentions on industrial research and development, 2014 Industrial research and development is expected to slow in 2014 with Canadian business enterprises planning on spending $15.4 billion, down 0.9 per cent from 2013 intentions. Most of the spending will be continue to be on wages and salaries, $9.5 billion in 2014, and other current costs (i.e. non-capital materials, contracts for on-site consultants), $4.8 billion. Spending on capital (i.e. machinery, equipment, land and building) will account for 7 per cent on total research and development spending and is anticipated to be around $1.1 billion.
Industrial research and development is highly concentrated with 100 business enterprises expected to account for half of the total R&D spending in 2014. The concentration has decreased over time, in 2004 the highest spending 100 firms under took 53 per cent of total spending and in 1994 undertook 58 per cent of total spending. Six industry groups will account for over half (54%) of industrial R&D in 2014. Aerospace products and parts manufacturing ($1.4 billion) and communication equipment manufacturing ($1.3 billion) will lead manufacturing R&D to $7.1 billion, 0.4 per cent lower than 2013. Within the service industries, research and development is expected to fall 0.5 per cent in 2014 with the largest sub industry spending occurring in scientific, research and development services ($1.9 billion); computer systems design and related services ($1.3 billion); wholesale trade ($1.2 billion); and information and cultural industries ($1.2 billion).
Characteristics of industrial research and development spending, 2012 In 2012, industrial R&D spending was $16.2 billion with three-quarters of spending happening in Ontario and Quebec. Both provinces had declining R&D expenditures in 2012; industrial research and development in Alberta rose 7.8 per cent on higher expenditures in mining, oil and gas extraction industry. In 2012, research and development expenditures in Nova Scotia were $81 million with $75 million being spent on on current expenditures and $6 million on capital expenditures. R&D expenditures was $37 million in both manufacturing and service sector in 2012.
In Canada, industrial research and development was primarily spent in engineer and technology (79%), followed by spending in natural and formal sciences (10%), medical and health science (10%) and agricultural science (2%). Energy related research and development rose 18.4 per cent to $2.0 billion with increased expenses related to fossil fuel technologies. Canadian business continue to fund most of their R&D activities with internal corporate funds, accounting for $13.8 billion (85%) of expenditures. Foreign funds were $1.7 billion and government sources were $644 million in 2012.
Source:
Industrial Research and Development: Intentions CANSIM 358-0161: Business enterprise research and development (BERD) characteristics, by industry group based on the North American Industry Classification System (NAICS), provinces and territories