Canada falling behind on business R&D

Innovation essential to economic growth: Report
By Shannon Klie
|Canadian HR Reporter|Last Updated: 06/02/2009

Comparatively lower investment in business research and development puts Canada at risk of falling behind other countries in terms of economic growth and profitability, according to a federal report.

The first annual report card from Canada’s Science, Technology and Innovation Council (STIC) ranked Canada 15th among 30 Organisation for Economic and Co-operation Development (OECD) countries and second to last among G7 countries when it comes to business R&D investment as a proportion of gross domestic product.

Business R&D and innovation is important because it is closer to the market than research at universities and colleges and therefore has a greater affect on Canada’s ability to turn research into new products and services it can sell globally, states Canada’s Science, Technology and Innovation System: State of the Nation 2008.