All economies are well aware that Research and development (R&D) plays a vital role in fostering innovation and technological advancement, driving economic growth and Canadian competitiveness in a global economy. R&D can lead to the development of new or improved products and processes that enhance our quality of life in areas such as healthcare and technology.
According to the most recent release of the Gross domestic expenditures on R&D, Canada’s business sector has consistently performed over half of the R&D activities since 2016.
In-house research and development rose over the COVID-19 pandemic
Total in-house R&D expenditures by the Canadian business sector have shown a consistent upward trend over a five-year period, rising from $18.7 billion in 2016 to $27.3 billion in 2021. This represents a compounded annual growth rate of approximately 7.9%.
Preliminary data for 2022 show a projected expenditure of $28.2 billion, 3.3% above 2021. Intentions data for 2023 suggest a further growth of 2.5%. The rise in spending levels over the 2021-to-2023 period highlights the role that Canada’s business sector plays in driving R&D in Canada.
