Top Corporate R&D Spending Falls Flat, Dragged Down by Largest Performers
Nov 02, 2015, 09:00 ET
Bombardier Inc. Holds On To Top Spot
TORONTO, Nov. 2, 2015 /CNW/ - Canada's largest R&D companies cut back on their spending on research and development (R&D) by a combined -1.6% in Fiscal 2014 compared with a 4.1% increase in Fiscal 2013, according to the annual Canada's Top 100 Corporate R&D Spenders list released today by Research Infosource Inc., Canada's Source of R&D Intelligence. Top 100 spending totalled $12.3 billion, compared with $12.5 billion the year before. However, while spending dropped sharply at the largest of the Top 100 performers, it increased strongly at the smaller firms.
"Economic and financial headwinds have affected the country's leading R&D companies", said Ron Freedman, CEO of Research Infosource. "What's different this year is that spending was down – often substantially – at 7 of the 10 largest performers, whereas smaller performers managed strong gains. Overall, 69 companies posted spending increases versus 30 where spending declined. (One company was even.)"
Bombardier Inc. retains first spot on the list, even with a -7.8% spending drop. BlackBerry Inc.'s R&D spending plummeted by -40.7%, but the firm held on to 2nd position. A modest 1.5% spending increased allowed Magna International Inc. to retain 3rd spot on the Top 100 list.
The leading industry sector was Aerospace. Five Aerospace companies accounted for 22.4% of total Top 100 spending. However, combining all its sub-sectors, the Information and Communications Technology sector dominated the ranking, accounting for 39.6% of all-industry spending.
This year Research Infosource included 30 firms in its $100 Million Club, an elite group that spent over $100 million on research in Fiscal 2014. New to the Club are Suncor Energy Inc. ($150.0 million), Mitel Networks Corporation ($130.7 million) and Cisco Canada ($104.2 million).
According to Mr. Freedman, "Fiscal 2014 contained two divergent stories. The country's largest R&D performers suffered strong cuts in R&D spending. However, the underlying base of companies actually performed well, boosting their R&D spending by 8.2%. With so much R&D concentrated in Canada's large companies, their performance heavily influences the national picture."
For complete information: http://www.researchinfosource.com/top100_corp.php
About Research Infosource Inc.
Research Infosource Inc. is Canada's source of R&D intelligence. Drawing from proprietary databases, 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, Canada's Top 40 Research Hospitals List and Canada's Top 50 Research Colleges List. As well, Research Infosource publishes specialized reports and The Innovation Atlas of Canada™ – a web-based research and innovation mapping tool and data information product.
SOURCE Research Infosource Inc.
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For further information: Ron Freedman, CEO, Research Infosource Inc., Telephone: (647) 345-3434, ext. 22; Cell: 416-879-9000, Email: [email protected]
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