RIM, BCE and IBM Canada report more than $500 million in R&D spending
TORONTO, Nov. 2, 2011 /CNW/ - Research Infosource, Canada's source of Research and Development
intelligence, is proud to announce that RIM, BCE and IBM Canada lead
the country in spending valuable resources on research and development
Total research income for Canada's Top 100 R&D Corporations was $9.4
billion in Fiscal 2010, down from $10.4 billion in Fiscal 2009, a 9.4%
decrease over Fiscal 2009. According to Canada's Top 100 Corporate R&D Spenders List 2011, released today, this continues a negative trend in R&D spending for
the 5th consecutive year. However revenues increased among the 92 companies
that reported by 4.7%. This year's revenue-bucking trend is not
unique. In 6 out of the past 9 years, R&D spending dropped, while
revenues increased. In Fiscal 2010, 48 companies posted R&D spending
increases, 48 declines and 4 companies remained flat over the period.
"An interesting twist to the results this year has Nortel Networks
Corporate (still active in 2010) and TELUS Corporation both posting
significant drops in their R&D spending in Fiscal 2010, unduly skewing
the results, said Ron Freedman, CEO, Research Infosource. "After
adjusting for this, the overall R&D spending by the 98 remaining
companies posted a respectable 3.5% increase in Fiscal 2010. One bright
spot is that according to Statistics Canada, the number of companies
performing research jumped from 8,741 companies in 1997 to 22,314 in
2007. At least more firms are playing in the game."
Research in Motion (RIM) remains Canada's top corporate R&D spender,
devoting nearly $1.4 billion to research, an increase of 26.3% over
Fiscal 2009. RIM's spending on research expanded slightly faster than
its revenues (up 20.1%).
Twenty-two companies qualified for Research Infosource's elite $100
Million Club, firms that reported $100 million or more in research
spending in Fiscal 2010. Together these companies spent $6.67 billion
in Fiscal 2010, accounting for 71% of total spending. Among the 20
companies in the Club both years, 9 companies increased their spending,
while 10 posted decreased and 1 remained flat between Fiscal 2009 and
"2010 is not unique. In the past 10 years Research Infosource has
documented spending drops over 7 years. Yet, during that period,
company revenues have increased in all but 2 years," added Freedman.
"So, there does not appear to be a strong relationship between R&D
spending and corporate revenues. Clearly, other factors are at play in
the anemic performance."
Certainly, government incentive programs play a role. So too do global
trends; for example, the migration of manufacturing activity to the Far
East. Also contributing is the changing nature of corporate R&D
itself. In decades past most R&D was performed by in-house corporate
research labs, whereas today those labs have largely disappeared. The
economy is facing new headwinds in the form of a global slowdown. It
remains to be seen how deep this will be and what its effect will be on
the corporate R&D scene.
Canada's Top 100 Corporate R&D Spenders List 2011 is available on the Research Infosource website, www.researchinfosource.com/latestlist.
About Research Infosource Inc.
Research Infosource Inc., a division of The Impact Group, is Canada's
source of R&D intelligence. Drawing from a proprietary database,
Research Infosource Inc. publishes Canada's Innovation Leaders which includes Canada's Top 100 Corporate R&D Spenders List, Canada's Top 50 Research Universities List and new this year - Canada's Top 40 Research Hospitals List. As well, Research Infosource publishes specialized reports and is the
producer of The Innovation Atlas of Canada™ - a web-based research and innovation mapping and data information
SOURCE Research Infosource Inc.
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