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| R&D dropping |
January 2, 2008 |
By Peter Wolchak
Less money going into research and development
 Spending on corporate R&D in Canada enjoyed two years of modest growth, but that turned around in 2006 when investment dropped 3.8 per cent, according to numbers from Research Infosource.
Research intensity (R&D spending as a percentage of revenue) also softened in fiscal 2006, with overall intensity coming in at 3.5 per cent for 94 companies where complete data were available, a drop of 6.9 per cent over 2005.
“It’s disappointing that, in a buoyant economy where companies are facing growing competition, they are cutting back on their innovation spending. The corporate sector is not positioning itself for the future,” said Ron Freedman, CEO of Research Infosource.
In 2006, only 54 companies posted R&D spending increases, down from 69 companies the year before. Thirty-four companies lowered R&D investments and two companies had zero growth. More information is at www.researchinfosource.com.
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