Canadian R&D spending continues its downward spiral: StatsCan
Canada.com
Businesses had planned to spend $14.8 billion in industrial research and development in 2010, continuing a downward trend for the third consecutive year, according to a Statistics Canada report released Wednesday.
Spending intentions for 2009 were $15.2 billion. Actual spending in 2008 was $15.8 billion, down 5.1 per cent from 2007.
“It is another bit of evidence that our businesses are not operating or competing on the basis of innovation, value-added and sophistication,” said Jim Milway, the executive director of the Institute for Competitiveness and Prosperity.
Milway said R&D spending is an indication that businesses are sophisticated enough to look to the future and to anticipate how to serve their clients better.
Milway said uncertainty about the economic future could be part of the reason why investments are dropping.
“With the recession, businesses probably held back because they had to cut expenditures and the easiest place to cut is R&D,” he said. Forty-three per cent of the planned 2010 spending is directed to five key industries: scientific research and development; communications equipment; wholesale trade; computer system design and related services; and information and cultural industries.
The only growth area for spending in these industries was scientific research and development services, which has risen by 4.9 per cent to $1.6 billion since 2008, Statistics Canada said.
Milway cautioned against judging economies solely based on research and development investments.
“It doesn’t say they are going to be successful,“he said. “Michigan and the auto industry are spending tons on R&D and don’t have much to show for it in terms of success.”
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