Product design, research and development

Summary:

Industry Canada has partnered with Canadian Manufacturers and Exporters, the Institute for Product Development, the Design Exchange, the Association of Canadian Industrial Designers, and Montreal Living Lab to share strategic information on how Canadian manufacturers can leverage Product Design, Research and Development to innovate and compete on a global stage. This report identifies best practices and trends, and provides insights into current and future industry needs.

Highlights

In today's global marketplace, Canadian manufacturers' ability to compete with firms around the world increasingly depends on their capability to generate viable product ideas and translate them into commercial success. Product design, research and development (PDR&D) is essential to drive commercialization and growth in the Canadian manufacturing sector.

To capitalize on current and future market opportunities, Canadian manufacturers are rethinking their PDR&D strategies. While keeping core PDR&D activities internal, many manufacturers are coordinating other business activities with supply chain partners, universities, and centres of excellence and forming strategic alliances and joint ventures. Manufacturers are being driven to implement open innovation by evolving customer requirements and increasing global competition; sharing knowledge and capacity enables manufacturers to commercialize quickly and reduce their product development risk.

Industry Canada has partnered with Canadian Manufacturers and Exporters, the Institute for Product Development, the Design Exchange, the Association of Canadian Industrial Designers, and Montreal Living Lab to share strategic information on how Canadian manufacturers can leverage PDR&D to innovate and compete on a global stage. This report identifies best practices and trends, and provides insights into current and future industry needs.

Key findings

Background

The extent to which Canadian manufacturers invest in product design, research and development (PDR&D) is a key determinant of their competitiveness, as PDR&D drives commercialization, export opportunities and growth. In 2008, the Canadian manufacturing sector invested close to $39 billion in PDR&D activity to link ideas and concepts to the creation of new and improved products.Footnote 1

The PDR&D process is a cycle of continuous improvement over time with iterative feedback and recurring input from development team members as well as executives, sales and marketing groups, and production teams. The process involves four stages: product idea generation; product selection; product development; and launch (Figure 1).

Figure 1 — Product design, research and development processFootnote 2

Figure 1 – Product design, research and development process (the link to the long description is located below the image)

Description of Figure 1

This diagram illustrates the product design, research and development process as a cycle. This cycle has four stages: product idea generation; product selection; product development and launch. The first stage is product idea generation, which includes five elements: analyse customer needs, collect competitive intelligence, scout new technologies, map emerging markets and conduct market research. Once this stage is complete the flow directs to the second stage, which is product selection. This stage includes: conduct market share analysis, analyze return on investment, assess and manage risk, outline product development strategy, assess market requirements and secure financing. When this stage is complete the flow directs to the third stage, which is product development. This stage includes: allocate resources, carry out product engineering, industrial design, and prototyping, and perform product trial and testing. The fourth and final stage is the launch of the product. This stage includes: position product competitively, manage life cycle, receive and collect customer feedback, and develop product extension strategies.

To begin the PDR&D process, manufacturers generate product ideas and evaluate whether they could be commercially viable. This step involves conducting extensive market research, scouting new technologies, and mapping potential emerging markets to assess customer needs. In the product selection stage, manufacturing firms further assess product ideas along with potential risks and financing options, and plan for product development to determine what resources are required to design and launch a product to market. Following this, industrial design, product evaluation, modelling, prototyping/testing, and refinement activities are completed in the development stage. Once a product has been successfully developed it is then integrated into production processes, and ultimately the new product is then promoted and launched in the marketplace.Footnote 2

At each stage of the process, manufacturers assess progress and realign their strategies to maximize the probability of success. In addition, customer feedback and refinement—a key component of the PDR&D process—feeds into manufacturers' competitive intelligence and process revisions, and drives product extension strategies and new product introductions.Footnote 2

Research and development (R&D), which encompasses basic research, applied research and experimental development, is central to product innovation and signals a firm's commitment to the generation and commercial application of new product ideas.Footnote 3 Core activities such as industrial design, product engineering, testing, and market research are also required to ensure product innovations are commercially successful.Footnote 2

To strengthen their competitiveness in the global market, Canadian manufacturers are rethinking their product innovation business models, investing in capacity, and implementing innovative tools and practices. An emerging strategy is global resource allocation, where product innovation is undertaken across geographical boundaries and PDR&D is coordinated with multiple stakeholders. As well, leading manufacturers are determining their products' intellectual property (IP) status at each stage of the process and using IP tools such as industrial designs, trade secrets, patents and trademarks to maximize the potential value of the information generated.Footnote 2

This report provides insights on:

Emerging trends in product innovation

The competitive nature of the manufacturing industry, potential risks, and business ambitions all influence the innovation business strategies undertaken by Canadian manufacturers.Footnote 4 In general, companies pursue a mix of two product innovation strategies: the first is new product innovation,Footnote a which is essential to push the boundaries of existing markets and to discover and pursue new opportunities in the global economy; the second involves substantial investment in R&D and product design to extend the market life of products through product extension strategies that drive long-term profitability and future iterations of product development (Figure 2).

Figure 2—Product design, research and development cash curveFootnote 5

Figure 2 – Product design, research and development cash curve (the link to the long description is located below the image)

Description of Figure 2

This diagram illustrates a typical cash curve associated with product design, research and development by stage. It relates cumulative cash to three stages. The three stages are: idea generation and product selection, product development and realization. In the first stage of idea generation and product selection firms examine boundaries of existing markets and analyses new opportunities. During the second stage of product development, cash is invested for start-up and pre-launch activities and focus is on time-to-market. Due to the pre-launch investment, cumulative cash decreases steadily until it reaches launch time, which falls in the final stage of realization. Cash continues to be invested but rises up to the baseline as the product is sold and less cash is paid out during production scale-up, which focuses on time-to-volume. Once the development of the existing product begins to generate profits as indicated by the upward cash curve line, the manufacturer must decide if and when to invest in product extension strategies to maximize revenue. If the cash curve line continues to grow the manufacturer may decide to continue product extension strategies, but if it starts to taper off, as illustrated by a hyphenated line, the manufacturer may decide to invest in new products.

Canadian manufacturers seek to introduce profitable product innovations by generating viable product ideas, securing start-up investments, effectively managing product development (time to market) and production scale-up (time to volume), and developing product extension strategies.Footnote 5 When designing new products, manufacturers weigh the benefits with the costs of reducing time to market (e.g., greater market share combined with higher development costs), and also consider the time required to reach volume production and deliver payback. Manufacturers must decide if and when to invest in product extension strategies to maximize revenue, and when to invest in the next generation of product introductions.

Challenges manufacturers face include assessing these factors early on and re-evaluating decisions at each step of the process to determine the likelihood that a product idea will generate payback, prior to investing significant time and resources.Footnote 5

As competition increases, the most common response by Canadian manufacturers is to compete on price, often coupled with the use of enhanced cost reduction strategies. Manufacturers also react by improving product quality, introducing innovative products, and accelerating product introductions (first-to-market advantages) (Figure 3). These responses reflect Canadian manufacturing firms' focus on a mix of both new product development and product extension strategies.Footnote 2

Figure 3—Manufacturers' responses to increased competition by size of firm Footnote b, Footnote 6

Figure 3 – Manufacturers responses to increased competition by size of firm (the link to the long description is located below the image)

Description of Figure 3

Figure 3: Manufacturers responses to increased competition by size of firm
  % of manufacturing firms facing new competitors
  Large Medium Small
Change product price 75.6% 69.1% 63.5%
Introduce new product innovations 49.7% 41.4% 36.1%
Decrease time to market  39.5% 38.2% 26.1%
Change product quality 35.6% 43.2% 34.1%

Reliance on new product development and product extensions varies by manufacturing industry (Figure 4). For example, industrial electronics manufacturers focus more on new product development and speed to market to meet narrow market windows and short product lifecycles, whereas the aerospace industry concentrates its efforts on product extension (new features, higher quality, and lower cost) due to the high risk and complexity of new product development and long product life cycles.Footnote 2

Figure 4—Responses to increased competition, by industryFootnote 6

Figure 4 – Responses to increased competition, by industry (the link to the long description is located below the image)

Description of Figure 4

Figure 4: Responses to increased competition, by industry
  % of manufacturing firms facing new competitors
  Introduce new product innovations Change the price of their good
Industrial electronics 71% 53%
Pharmaceutical 52% 58%
Motor vehicle parts 37% 58%
Chemical 34% 42%
Primary metal 29% 63%
Aerospace 28% 45%
Machinery 27% 50%
Fabricated metal 18% 80%

Meanwhile, motor vehicle and motor vehicle parts manufacturers focus on product extensions in areas such as vehicle efficiency through platform and component improvements, weight reductions, and cost reduction through design and process optimization. Pharmaceutical manufacturers' product extension strategies include developing drug delivery system variants and new combinations for improved efficacy.Footnote 7 In some industries, such as fabricated metal manufacturing, where product differentiation is based largely on price, firms focus their R&D and engineering resources on increasing efficiency of production processes to reduce costs.Footnote 2

In terms of new product commercialization, the Canadian manufacturing sector is at the forefront. Between 2007 and 2009, 43 percent of Canadian manufacturers introduced new product innovations, compared to 13 percent of all other industries.Footnote c In addition, nearly as many manufacturers (22%) introduced new service innovations to complement their product offerings compared to firms in other industries (25%).Footnote 6

Canadian aerospace manufacturers are developing new and improved products in many areas such as advanced aircraft structures (fuselage and wing components, horizontal and vertical stabilizers, and subassemblies), avionic systems, and critical engine systems and components. The chemical industry also invests in PDR&D to formulate biochemical and green products, and speciality chemicals developed on a customer basis (Figure 5). Footnote 2

Figure 5—Introduction of new product innovations, by industry (2007 to 2009)Footnote 6

Figure 5 – Introduction of new product innovations, by industry (2007 to 2009) (the link to the long description is located below the image)

Description of Figure 5

Figure 5: Introduction of new product innovations, by industry (2007 to 2009)
  % of manufacturing firms
Industrial electronics 61.8%
Pharmaceutical 59.0%
Chemical 48.4%
Aerospace 48.4%
Motor vehicle 44.4%
Primary metal 41.9%
Motor vehicle parts 39.3%
Fabricated metal 30.0%
Manufacturing average 42.6%

Motor vehicle parts manufacturers focus new product development efforts in areas such as advanced powertrain components, lightweight and bio-materials, and thermoplastic composites and parts. Meanwhile, motor vehicle manufacturers put effort towards developing chassis and body sub-systems, fuel cell technology and hybrid electric technology. The industrial electronics industry places significant focus on new product development, with over 60 percent of firms introducing new products between 2007 and 2009.Footnote 6 In this industry, manufacturers are designing electrical systems and hardware for products such as carrier-grade telecommunications equipment, embedded microprocessors, and digital signal processing equipment. In addition, some manufacturers offer mechanical, structural and thermal design solutions for enclosures that encompass a wide range of plastic, metal and other material technologies (Table 1).

Table 1: Examples of product innovation, by industryFootnote 2
Industry Product Extension New Product Innovation
Motor Vehicle
  • Product testing and R&D to improve noise, vibration and harshness
  • R&D and engineering to optimize designs to achieve cost and weight targets and improve functionality
  • Next-generation engines, transmissions and drivelines design
  • Hybrid electric vehicle technology development
  • New platform development
  • Fuel cell technology
Motor Vehicle Parts
  • Cost reduction through process innovation and developing state-of-the-art production systems
  • Product testing to improve durability, operational performance and strength
  • Advanced powertrain components (energy-efficient engines, transmissions and drivelines)
  • Thermoplastic composites and parts
  • Lightweight and bio-materials to improve efficiency and environmental impact
Aerospace
  • Composite and lightweight components
  • Platform extensions for multiple purposes
  • Noise pollution and fuel efficiency
  • Optimizing maintenance tasks and improved aesthetics
  • New major platforms development
  • Advanced engine and subsystems development
  • Avionics development
Industrial Electronics
  • Enhanced cost reduction strategies for extremely low-volume, high-mix manufacturing
  • Multiple platforms for different industry applications, such as telecommunications, aerospace, defence, automotive and consumer electronics
  • Electrical and hardware design for products such as large high-speed, carrier-grade telecommunications equipment, embedded microprocessors
  • Mechanical, structural and thermal design solutions for enclosures that encompass a wide range of plastic, metal and other material technologies
Pharmaceutical
  • Product extension through the introduction of drug delivery system variants (prolonged release formulations
  • New combinations with other drugs for improved efficacy and new indications
  • Development of new pharmaceutical products through drug candidate selection, pre-clinical and phase I (first human administration), phase II (target population) and phase III (large sample of up to several thousand patients) clinical trials

An increasingly common method for manufacturers to develop product innovations is through open innovationFootnote d In Canada, 24 percent of manufacturers stated that product innovations were mainly developed with the support of outside organizations,Footnote 6 such as supply chain partners and research institutions. Evolving customer requirements and increasing global competition are driving manufacturers to look for partners to share knowledge and capacity, allowing them to innovate more quickly and to share product development risks (Figure 6).Footnote 8

Figure 6—Involvement of outside organizations in the development of product innovations, by industryFootnote 6

Figure 6 – Involvement of outside organizations in the development of product innovations, by industry (the link to the long description is located below the image)

Description of Figure 6

Figure 6: Involvement of outside organizations in the development of product innovations, by industry
  % of manufacturing firms
Pharmaceutical  41.7%
Aerospace 27.8%
Fabricated metal 26.3%
Motor vehicle parts 25.8%
Chemical 21.7%
Primary metal 21.7%
Industrial electronics 17.8%
Machinery 13.4%

The degree of collaboration varies by industry. For example, many pharmaceutical firms (42%) develop new products with input from external organizations such as other pharmaceutical companies, research laboratories, and universities. Several aerospace and automotive parts manufacturers develop new products with external involvement. In these industries, firms make use of centres of excellence, university research partnerships and research institutes, and also work with other firms within the supply chain to leverage PDR&D efforts.Footnote 2

Open innovation within the context of PDR&D enables Canadian manufacturers to more easily gain and integrate needed product knowledge from external partners and to effectively introduce products with greater commercial potential. In order to do so, Canadian manufacturers first identify which partners (customers, suppliers, and competitors) to collaborate with in an open innovation process, and then design methods and tools to collect and effectively integrate information into their PDR&D processes.Footnote 9

Product design, research and development business models

Intensified global competition is driving Canadian manufacturers to adapt their business processes and activities to effectively develop commercially viable products. This includes revising their business models in order to better access and manage multidisciplinary and globally distributed knowledge that has increased the complexity of PDR&D.Footnote 10

The majority of Canadian manufacturers perform R&D activities in Canada, regardless of head office location. In addition, a high percentage of manufacturers perform product engineering activities in Canada (80%), with no substantial difference between Canadian-owned and foreign-based firms (Figure 7). This is, to a certain extent, due to the fact that these activities are linked to the later stages of product development closer to production, which is the core business operation of manufacturers.Footnote 2

Figure 7—Product design, research and development activity performed within the firm in CanadaFootnote 6

Figure 7 – Product design, research and development activity performed within the firm in Canada (the link to the long description is located below the image)

Description of Figure 7

Figure 7: Product design, research and development activity performed within the firm in Canada
  % of manufacturing firms with 250+ employees
  R&D Engineering
Head office in Canada 80.4% 78.4%
Head office outside of Canada  60.3% 81.7%

Despite the fact that PDR&D business models vary across industries and firms, some of the most influential factors that affect manufacturers' decisions to perform these activities in a specific location are similar. Access to talent and embedded knowledge, innovative environments (e.g., clusters), financial incentives, general operating costs, proximity to other core business operations and customers, and level of IP protection are several examples.Footnote 11 However, Canadian manufacturing firms generally make decisions related to R&D focus on a per-project basis, and units within the same company compete for product design mandates.Footnote 2

The degree of foreign parent involvement in R&D decisions differs by industry and is closely linked to the level of foreign ownership (Figure 8). For many manufacturers, R&D decisions for new product mandates are primarily made by the global head office. Conversely, product extension decisions mostly occur at the plant level where R&D and engineering activities that focus on enhanced cost reduction are mainly performed.Footnote 2 The higher level of foreign parent involvement in the pharmaceutical industry reflects the need for central coordination of long-term drug development conducted in treatment-specific R&D and production facilities around the globe.Footnote 2

Figure 8—Research and development decisions made by or jointly with foreign parentFootnote 6

Figure 8 – Research and development decisions made by or jointly with foreign parent (the link to the long description is located below the image)

Description of Figure 8

Figure 8: Research and development decisions made by or jointly with foreign parent
  % of manufacturing firms with 250+ employees
  R&D Location R&D Focus
Pharmaceutical 82% 55%
Primary metal 56% 56%
Chemical 50% 57%
Motor vehicle parts 51% 47%
Aerospace 46% 39%
Industrial electronics 41% 39%
Fabricated metal 26% 31%

While keeping core PDR&D activities internal, global manufacturers coordinate PDR&D efforts between business units and supply chain partners, and form strategic alliances and joint ventures.Footnote 12 Global manufacturers invest in PDR&D activities in multiple countries, set up cooperation agreements and technological alliances, and outsource PDR&D activities to service providers.Footnote 13

When a manufacturer integrates a global PDR&D strategy into its overall business planning, production, operations, logistics and marketing implications must be considered to assess the potential benefits and costs of internalizing or outsourcing specific PDR&D tasks.Footnote 14 Manufacturers can then develop their deployment strategies to determine the mix of options to pursue (Figure 9). Typically, manufacturers centre their deployment strategies around their main production activity.Footnote 2

Figure 9—Product design, research and development strategyFootnote 2 Footnote 14

Figure 9 – Product design, research and development strategy (the link to the long description is located below the image)

Description of Figure 9

This diagram illustrates how business model options of the product design, research and development strategy are examined against considerations and potential benefits and costs. Considerations include: process modularity, product modularity, intellectual property, infrastructure, collaborative culture and governance. Potential benefits and costs include: accessing global product development talent, improving efficiency, capture market growth, protecting intellectual property and increased time to market. The business model options include: internal in home country, internal outside home country, outsourced in home country and outsourced outside home country. The diagram also illustrates that business model options have implications on firms’ other business operations including production, operations, logistics and marketing.

Accessing new sources of product innovation outside the company, increasing design capacity, and accessing specialized skills from the global workforce and new markets are among the top drivers for conducting global PDR&D. Large manufacturers also typically leverage local expertise or capabilities to adjust product offerings to comply with local requirements or customer preference.Footnote 2

It should be noted that gaining the full benefits of a global PDR&D strategy in an efficient and cost-effective way can be challenging. North American manufacturers must manage the impact of changes across dispersed teams and ensure quality standards of design are maintained, while retaining company knowledge of product design decisions and protecting IP (Figure 10).Footnote 15

Figure 10—Top challenges of global product design, research and developmentFootnote 15

Figure 10 – Top challenges of global product design, research and development (the link to the long description is located below the image)

Description of Figure 10

Figure 10: Top challenges of global product design, research and development
  % of North American manufacturing firms
Ensuring standards of design quality 50%
Managing impact of changes across dispersed teams 50%
Retaining company knowledge of product design decisions 35%
Information sharing and collaborative practices 32%
Protecting intellectual property  30%

To meet these challenges, manufacturers assess a number of factors when developing their global PDR&D strategies. Among these considerations are the type of management and project planning systems in place, the sophistication of the information and communication technology environment (a reliable information system is required so that design information is secure and accessible from any location), the level of process modularity (method to split development work to be distributed globally), the degree of product modularity (design of subsystems that can be completed by teams in different locations and then integrated into a final product), the firms' collaborative culture (ability of design teams in different time zones and with different cultural practices and languages to work together efficiently) and the IP protection strategy adopted.Footnote 14

Overall, Canadian manufacturers internalize core R&D activities to maintain ownership over project directions, timelines and outcomes, but leverage external expertise or capability for specialized functions.Footnote 2 In Canada, the majority of manufacturers (70%) conduct R&D activities in-house regardless of the size of firm (Figure 11).

Figure 11—Internal and outsourced research and development activities, by size of firmFootnote 6

Figure 11 – Internal and outsourced research and development activities, by size of firm (the link to the long description is located below the image)

Description of Figure 11

Figure 11: Internal and outsourced research and development activities, by size of firm
  % of manufacturing firms
  In Canada Outside of Canada
  Internal Outsourced Internal Outsourced
Large 69.3% 10.6% 38.5% 9.4%
Medium 74.4% 9.8% 16.4% 3.0%
Small 70.3% 9.4% 5.0% 1.1%

Large manufacturers outsource R&D activities to partners located in Canada and abroad at a similar level (10%). Medium-sized and smallFootnote e Canadian manufacturers with a limited global footprint tend to favour local business partners in their R&D outsourcing strategies. Outside of Canada, more than twice as many large Canadian manufacturers (30%) perform R&D activities compared to medium-sized firms (14%) and small firms (5%) (Figure 11). For product engineering activities, manufacturers adopt a similar pattern.Footnote 6

With more than 90 percent of firms with more than 250 employees conducting R&D in Canada, the aerospace and industrial electronics industries have the highest percentages of manufacturers developing their products in-house in Canada (Figure 12).

Figure 12—Internal and outsourced research and development activities, by industryFootnote 6

Figure 12 – Internal and outsourced research and development activities, by industry (the link to the long description is located below the image)

Description of Figure 12

Figure 12: Internal and outsourced research and development activities, by industry
  % of manufacturing firms with 250+ employees
  Internal in Canada Outsourced in Canada Internal outside of Canada Outsourced outside of Canada
Aerospace 92.30% 30.80% 48.00% 7.70%
Industrial electronics 90.80% 13.80% 35.80% 7.80%
Machinery  73.50% 10.80% 30.70% 1.70%
Primary metal  71.30% 6.80% 21.50% 3.00%
Chemical 61.90% 1.00% 59.40% 11.00%
Fabricated metal 60.50% 14.90% 31.00% 6.50%
Motor vehicle parts  53.30% 6.70% 35.60% 4.40%

In the aerospace and automotive industries, original equipment manufacturers (OEMs) increasingly specify overall system requirements and then delegate to their suppliers the responsibility to engineer and design a component or sub-system. Typically, advanced R&D for strategic components such as hybrid powertrain systems or composite wings is performed internally.Footnote 2

Canadian investment in research and development capacity

Research and development has become increasingly mobile over the past decade, with large multinational firms creating global R&D networks to adapt products to local markets, acquire assets and gain knowledge.Footnote 16 Manufacturers' decisions to invest in R&D and product engineering facilities are complex. When deciding to expand capacity in Canada or abroad, firms weigh several strategic factors, such as the skilled workforce of a region, IP protection, culture and regulatory environment, market size and growth potential, presence of clusters, suppliers and centres of excellence, and the need to access foreign markets.Footnote 16

Large multinational manufacturers are establishing R&D and product engineering facilities in multiple locations worldwide. Firms generally invest in two types of global R&D: adaptive and asset-seeking. Adaptive R&D aims to adjust product offerings to local market conditions; it tends to be closely related to production activities and is required to ensure that products meet customers' needs and that time to market is minimized. Asset-seeking R&D investment aims to acquire strategic assets such as new technologies and to gain access to expertise. With this type of investment, manufacturers generally consider supply-related factors in locating R&D facilities.Footnote 16

In Canada, between 2007 and 2009, more than twice as many Canadian manufacturing firms opened a new R&D facility or expanded capacity than those that reduced R&D capacity, with a greater percentage of largeFootnote f firms expanding compared to small and medium-sized manufacturers (Figure 13).

Figure 13—Investment in product design, research and development facilities in Canada by size of firm (2007 to 2009)Footnote 6

Figure 13 – Investment in product design, research and development facilities in Canada by size of firm (2007 to 2009) (the link to the long description is located below the image)

Description of Figure 13

Figure 13: Investment in product design, research and development facilities in Canada by size of firm (2007 to 2009)
  % of manufacturing firms
  R&D Engineering
  Opened new facility or expanded capacity Obtained capacity by merger or acquisition Closed an existing facility or decreased capacity Opened new facility or expanded capacity Obtained capacity by merger or acquisition Closed an existing facility or decreased capacity
Large 10.5% 3.5% 6.1% 5.3% 5.7% 7.0%
Medium 8.6% 2.8% 2.2% 7.4% 3.3% 2.1%
Small 7.7% 3.0% 1.9% 5.8% 2.7% 1.7%

Investment in R&D facilities and capacity in Canada varies by manufacturing industry. For example, 22 percent of motor vehicle manufacturers opened R&D facilities between 2007 and 2009, with some firms focusing on powertrain dynamometer research, fuel cell testing, and R&D on a broad range of advanced production and prototype engine technologies.Footnote 2 Conversely, the evolving business model in the auto parts manufacturing industry has led to some firms focusing more on a build-to-print business model (Figure 14).Footnote 2

Figure 14—Investment in research and development facilities in Canada, by industry (2007 to 2009)Footnote 6

Figure 14 – Investment in research and development facilities in Canada, by industry (2007 to 2009) (the link to the long description is located below the image)

Description of Figure 14

Figure 14: Investment in research and development facilities in Canada, by industry (2007 to 2009)
  % of manufacturing firms
  Opened new facility or expanded capacity Obtained capacity by merger or acquisition Closed an existing facility or decreased capacity
Motor vehicle 22.2% 5.6% 0.5%
Pharmaceutical 16.3% 2.0% 6.6%
Chemical 13.7% 3.1% 0.9%
Aerospace 11.8% 0.5% 3.6%
Industrial Electronics 11.5% 5.2% 5.9%
Fabricated metal 10.8% 2.7% 0.9%
Machinery 9.1% 4.5% 1.8%
Primary metal 4.8% 5.7% 0.5%
Motor vehicle parts 1.3% 1.8% 7.9%

Firms in the aerospace industry have increased R&D capacity almost solely through organic expansion, while firms in the pharmaceutical manufacturing industry have expanded R&D capacity to focus on new drug discoveries. Industrial electronics manufacturers are expanding R&D capacity — in many cases with university collaboration — to focus on the development of next generation electronics such as micro-electromechanical systems for silicon chips and electrical and hardware design for products such as carrier-grade telecommunications equipment and embedded microprocessors.Footnote 2

From 2007 to 2009, a greater percentage of manufacturers opened new R&D facilities or expanded capacity than those that reduced R&D capacity, regardless of head office location. Meanwhile, a greater percentage of manufacturers with Canadian head offices expanded R&D capacity compared to their foreign counterparts (Figure 15).

Figure 15—Investment in research and development facilities in Canada (2007 to 2009)Footnote 6

Figure 15 – Investment in research and development facilities in Canada (2007 to 2009) (the link to the long description is located below the image)

Description of Figure 15

Figure 15: Investment in research and development facilities in Canada (2007 to 2009)
  % of manufacturing firms with 250+ employees
  Opened new facility or expanded capacity Obtained capacity by merger or
acquisition
Closed an existing facility or decreased capacity
Head office in Canada 12.3% 3.5% 4.1%
Head office outside Canada 7.8% 4.6% 5.8%

In addition to investing in PDR&D capacity in Canada, close to 10 percent of largeFootnote g manufacturing firms obtained R&D and engineering capacity internationally through mergers and acquisitions during the 2007-2009 period (Figure 16). Organic investment is generally chosen for adaptive R&D that is closely linked to production. Mergers and acquisitions are a common method of expansion and technology sourcing, asset-augmenting R&D, and footprint expansion.Footnote 2

Figure 16—Investment in product design, research and development facilities outside of Canada, by size of firm (2007 to 2009)Footnote 6

Figure 16 – Investment in product design, research and development facilities outside of Canada, by size of firm (2007 to 2009) (the link to the long description is located below the image)

Description of Figure 16

Figure 16: Investment in product design, research and development facilities outside of Canada, by size of firm (2007 to 2009)
  % of manufacturing firms
  R&D Engineering
  Opened new facility or expanded capacity Obtained capacity by merger or acquisition Closed an existing facility or decreased capacity Opened new facility or expanded capacity Obtained capacity by merger or acquisition Closed an existing facility or decreased capacity
Large 7.2% 9.4% 5.1% 4.9% 9.8% 6.0%
Medium 4.2% 3.1% 2.0% 3.9% 3.1% 1.6%
Small 1.3% 2.5% 0.7% 2.0% 1.9% 0.3%

In terms of international investment in R&D capacity, manufacturers consider many factors. For example, with high-growth opportunities in emerging economies, some manufacturers invest in R&D capacity to support global product platforms and local product requirements.Footnote 17

Intellectual property strategies

Product design, research and development generates information that is vital for commercial success, and that information needs to be managed and protected effectively. Canadian manufacturers are developing and implementing proactive IP strategies, aligned with innovation and business strategies, to maximize the potential value from the information generated by the PDR&D process.Footnote 2 Addressing IP considerations from the initial stages of PDR&D, continuously assessing the product's IP status, and determining what IP tools are most appropriate at each stage are key elements to an effective IP strategy (Figure 17). Equally important in IP strategies is defining how product information (e.g., specifications, design data, embedded technologies) is protected, both internally and in teams that involve external partners.Footnote 2

Figure 17—Intellectual property tools in the product design, research and development processFootnote 18

Figure 17 – Intellectual property tools in the product design, research and development process (the link to the long description is located below the image)

Description of Figure 17

This diagram identifies various intellectual property tools available at each stage of the product design, research and development process. The product idea generation product selection is the first stage. Examples of intellectual property tools for this stage include: trade secrets, trademark information, trademarks, patent information, patents and domain name. Product development is the second stage of the product design, research and development process. Examples of intellectual property tools for this stage include: trade secrets, trademarks, patent information, patents, copyright and industrial design. Launch is the final stage of the product design, research and development process. Examples of intellectual property tools for this stage include: trade secrets, trademark protection, patent protection and industrial design protection.

During the product idea generation stage of the PDR&D process, treating initial concepts and related information as trade secretsFootnote h, Footnote 19 is a key protection tool utilized by Canadian manufacturers until other IP tools may be used.Footnote 18 In addition, trade secrets play an important role for product specifications and related information — including technologies and manufacturing processes — which firms often decide to keep confidential throughout a product's life cycle.Footnote 20 In general, secrecy is a major element of a firm's IP strategy and is often considered more important than formal IP tools such as patents.Footnote iFootnote 21 Confidentiality agreements (non-disclosure agreements) that specify penalties for non-compliance are another important measure to protect trade secrets covering product specifications that result from PDR&D performed both within the firm and in an open innovation process.Footnote 2

Manufacturers use multiple sources to generate product ideas. One source is global IP databases that provide information on what products competitors are developing. IP databases can also yield technical details of a previously developed technology or manufacturing process that is relevant to a product under development.Footnote 18 IP databases are helpful for manufacturers to assess the risks of potential infringement on other organizations' IP rights from the idea generation phase through to the end of the PDR&D process.

In the product development stage, Canadian manufacturers utilize many IP tools to protect the increasing amount of product information generated and to facilitate collaboration with partners. For example, many manufacturers register industrial designs in the product development stage to protect the visual features of products and extend the protection afforded by patents. Additionally, industrial design protection is well adapted to redesigns performed in the context of product extensions.Footnote 18

When performing PDR&D in open innovation partnerships, manufacturing firms specify IP ownership at the onset of projects and use confidentiality agreements to facilitate collaboration and maximize the potential value of R&D investment. An emerging trend within an R&D partnership with universities, service providers or suppliers is to assign the IP rights of the business application of the technology to the user (e.g., a manufacturer), while the developer (e.g., a university) retains the IP rights to the specific technology. This includes the rights to commercialize the product for clients who are not competing with the user, notably in technological applications in other industries. The increase in open innovation partnerships is also changing firms' willingness to commercialize IP by licensing, assigning or acquiring IP rights to technologies.Footnote 8 Assessing IP portfolios for potential revenues through licensing or assigning IP rights is another element of a proactive IP strategy.Footnote 22

Marketing considerations are also an integral part of a firm's IP strategy. In the early stages of developing the visual and textual elements of a new product's brand (i.e., logos, product names and slogans), a proactive approach includes assessing whether those elements may be registered and used as trademarks by examining available trademark information. Trademarks help support a firm's marketing strategy by differentiating its products from its competitors while leveraging the product's established name beyond the length of its patent coverage.Footnote 18 Equally important in the early stages of product innovation is the assessment of the availability, and the subsequent registration, of Internet domain names related to a product's branding elements to help maximize the advertising footprint.Footnote 2 Finally, firms generally seek IP protection for geographic areas where they plan to sell their products.

Ensuring that available IP protection tools are applied according to a firm's own strategy by the time the product is launched is crucial to protect and leverage the investment made in the PDR&D process. After the product is launched, monitoring the IP environment and taking action when infringement occurs is another element of a firm's IP strategy to help retain its competitive advantage.Footnote 2

Even though firms in the industrial electronics and the pharmaceutical manufacturing industries rely on multiple IP protection tools, the use of patents dominates both industries. Industrial electronics firms typically rely on a large number of patents, whereas pharmaceutical firms tend to rely on fewer, but potentially extremely valuable, patents.Footnote 23 In both industries, patents are often subject to challenges by competing firms. The cost of such challenges may be seen as an obstacle to innovation by some pharmaceutical firms and, to a lesser extent, industrial electronics manufacturing firms (Figure 18). However, 55 percent of Canadian manufacturers that indicated IP protection as an obstacle to innovation were able to implement successful mitigating measures.Footnote 6

Figure 18—Intellectual property protection as an obstacle to innovation, by industryFootnote 6

Figure 18 – Intellectual property protection as an obstacle to innovation, by industry (the link to the long description is located below the image)

Description of Figure 18

Figure 18: Intellectual property protection as an obstacle to innovation, by industry
  % of manufacturing firms
Pharmaceutical  24.4%
Industrial electronics 16.7%
Chemical 15.9%
Motor vehicle  11.1%
Aerospace 8.3%
Motor vehicle parts 6.6%
Manufacturing average 8.0%

When pursuing export markets, 16 percent of Canadian manufacturing firms indicate that IP violation is a significant obstacle.Footnote 6 For pharmaceutical and aerospace manufacturers, this issue is particularly critical (Figure 19). For instance, counterfeit replacement aerospace parts entering the supply chain are significant concerns for maintenance operations.Footnote 2

Figure 19—Intellectual property violation as a significant obstacle to exporting by industryFootnote 6

Figure 19 – Intellectual property violation as a significant obstacle to exporting by industry (the link to the long description is located below the image)

Description of Figure 19

Figure 19: Intellectual property violation as a significant obstacle to exporting by industry
  % of manufacturing firms
Pharmaceutical   35.6%
Aerospace 24.3%
Industrial electronics 20.7%
Chemical 12.6%
Motor vehicle parts   12.1%
Fabricated metal  9.9%
Primary metal  9.3%
Motor vehicle  1.0%
Manufacturing average 15.2%

In response to potential IP violations, some firms rely on speed to market instead of formally registering IP to leverage the competitive advantage of new product innovation and product extensions. Costs and requirements of multi-jurisdiction IP registration and, more importantly, the defence of IP are barriers for manufacturers exporting new products.Footnote 2

Best-in-Class analysis—intellectual property

Protecting design specifications is an important aspect of safeguarding product information generated during product innovation performed both within a firm and in open innovation partnerships. Overall, Best-in-Class (BiC) firmsFootnote j are in a better position to protect IP resulting from their PDR&D initiatives. In open innovation partnerships, BiC firms are more likely to limit the information (e.g., product specifications and design data) shared with external partners to the level required for the portion of the product those partners are developing (Figure 20).

Figure 20—Best-in-Class intellectual property practicesFootnote 24

Figure 20 – Best-in-Class intellectual property practices (the link to the long description is located below the image)

Description of Figure 20

Figure 20: Best-in-Class intellectual property practices
  % of North American manufacturing firms
  BiC Laggards
Design security procedures enforced throughout extended enterprise 50% 19%
Defined standards for providing design data to other business units 55% 26%
Access to design data password-controlled 61% 26%
Role-based access to design specifications 61% 29%

Another solution is to ensure that the level of access to product design specifications (whether a user can view the specifications) is defined according to functional roles in the enterprise. BiC firms are twice as likely to implement such a solution, compared to laggards.Footnote 24 BiC firms also distinguish themselves by the implementation of defined standards for providing product design data to other business units. For example, sharing the visual representation of a product design instead of a complete data file is a measure implemented by BiC firms.Footnote 24

Advanced technologies and process adoption

In response to competitive pressures, Canadian manufacturers are seeking to reduce development time for new products while implementing extension strategies for their current products through a combination of new features and cost reductions. To that end, firms are optimizing product innovation by implementing new processes and adopting new technologies.Footnote 24

The adoption rates of advanced computerized design and engineering technologies between small, medium-sized and largeFootnote k Canadian manufacturing firms do not differ substantially (41%, 45% and 50%, respectively); however, specific advanced technology applications do vary by industry. For example, motor vehicle manufacturers are adopting computer assisted engineering tools that enable simulation and virtual testing as part of their Virtual Product Development strategies.Footnote 2 In general, more than 60 percent of firms in the motor vehicle and industrial electronics industries use advancedFootnote l computerized design and engineering technologies (Figure 21).

Figure 21—Advanced computerized design and engineering technology adoption, by industryFootnote 6

Figure 21 – Advanced computerized design and engineering technology adoption, by industry (the link to the long description is located below the image)

Description of Figure 21

Figure 21: Advanced computerized design and engineering technology adoption, by industry
  % of manufacturing firms
Motor vehicle 67%
Industrial electronics 63%
Aerospace 60%
Motor vehicle parts 55%
Fabricated metal  45%
Primary metal 43%

Rapid prototyping techniques are also being used to accelerate the product innovation process. Firms are using additive manufacturing methods such as 3D printing to produce prototypes suitable for aerodynamic testing purposes in a significantly shorter time frame, since the need for tooling is eliminated.Footnote 25

An emerging trend in PDR&D is the adoption of tools that integrate technologies and enable firms to manage the PDR&D process according to a product life cycle management (PLM) approach. PLM consists of managing all phases of a product's life cycle, from idea generation through to product retirement. Although PLM software that supports firms' product development efforts may integrate only a subset of all the tools required in the process, product data management is a core function of PLM solutions.

In general, PLM tools not only facilitate decision making at each stage of the process by enabling internal stakeholder access to relevant product information, but they also allow integration with supply chain partners. For example, integrating suppliers in the PDR&D process is facilitated with PLM systems that provide access to up-to-date product design data.Footnote 2 When product variants are based on a common platform, this ability is particularly crucial — for two reasons. First, changes in platform design need to be validated against all product configurations. Second, partners developing subcomponents or subsystems affected by platform design changes require timely notification and relevant details regarding such changes.Footnote 2

Aerospace firms are also using simulation tools to support design-for-maintainability initiatives. Aircraft maintenance is a key component in end-users' total cost of ownership, and is therefore an important factor in purchase decisions. Chemical manufacturers are leveraging PLM capabilities in the design and development of their products to help achieve compliance with regulatory requirements. Finally, industrial electronics firms' compliance with environmental mandates can be facilitated with a PLM system that manages compliance from the early stages of product design by integrating component compliance data from suppliers while documenting overall product compliance.Footnote 2

Best-in-Class analysis—advanced technologies

Best-in-Class (BiC) manufacturing firmsFootnote m are more than twice as likely as laggards to rely on PLM tools in their PDR&D processes. In addition, many BiC manufacturing firms utilize virtual prototyping to decrease product development costs by significantly reducing the need to produce physical prototypes. Virtual prototyping also reduces the overall PDR&D cycle by allowing design changes to be evaluated more quickly (Figure 22).Footnote 26

Figure 22—Best-in-Class global product design, research and development technologies and processesFootnote 24

Figure 22 – Best-in-Class global product design, research and development technologies and processes (the link to the long description is located below the image)

Description of Figure 22

Figure 22: Best-in-Class global product design, research and development technologies and processes
  % of North American manufacturing firms
  BiC Laggards
Design performance indicators measurement 61% 24%
Product lifecycle management tools 55% 26%
Standard design processes 54% 26%
Virtual prototypes 50% 15%
Design collaboration tools 44% 15%
Design translation tools 33% 7%

The adoption of design translation toolsFootnote n is also a differentiating factor for BiC firms. R&D partnerships often involve stakeholders whose computer-aided design tools are not directly interoperable. BiC firms are four times more likely than laggards to have design translation capabilities that facilitate open innovation with their product innovation partners.Footnote 24

Similarly, design collaboration tools also set BiC firms apart from their competitors. These include real-time virtual meeting tools that leverage advanced features such as prototype visualization and design modification and evaluation, allowing design changes to be explored in real-time during collaborative design sessions while significantly reducing the length of the product development cycle.Footnote 2

Final remarks

Canadian manufacturers are at the forefront of new product commercialization and have the potential to continue enhancing their product innovation capacity. The findings presented in this report demonstrate that product design, research and development plays a vital role in the competitiveness of Canadian manufacturing industries. PDR&D helps manufacturers create, innovate and commercialize. It involves interplay between design, engineering and R&D, forming a systematic approach that integrates holistic thinking, research methods and strategic planning.

The findings presented in this report draw important linkages between the PDR&D process, product innovation, commercialization, export opportunities, IP and technology. These connections can help inform a continuous dialogue across businesses, governments and academia to continue to improve the competitive and dynamic business environment for the Canadian manufacturing industry.

Annex—tablesFootnote 6

Table A-1 — Manufacturers' response to increased competition, by size of firm Footnote o (2009)
  % of manufacturing firms
  Small Medium Large
Change product price 63.5% 71.3% 67.6%
Introduce new product innovation 36.1% 39.7% 48.2%
Decrease time to market 26.1% 35.9% 43.1%
Change product quality 34.1% 42.9% 40.6%
Table A-2 — Percentage of manufacturers who introduced new product innovations, by industry (2007–2009)
Manufacturing 42.6%
Food manufacturing and beverage manufacturing 38.0%
Food manufacturing 36.5%
Animal food manufacturing 42.9%
Dairy product manufacturing 44.8%
Meat product manufacturing 29.7%
Seafood product preparation and packaging 9.8%
Bakery and tortillas manufacturing 35.3%
Beverage and tobacco product manufacturing 55.9%
Textile mills and textile product mills 45.9%
Textile mills 55.3%
Textile product mills 40.4%
Clothing manufacturing 34.7%
Cut and sew clothing manufacturing 30.6%
Leather and allied product manufacturing 61.7%
Wood product manufacturing 34.3%
Sawmills and wood preserving 31.6%
Veneer, plywood and engineered wood product manufacturing 25.6%
Other wood product manufacturing 38.2%
Paper manufacturing 33.8%
Pulp, paper, and paperboard mills  44.1%
Converted paper product manufacturing 31.5%
Printing and related support activities 29.1%
Petroleum and coal product manufacturing 50.1%
Chemical manufacturing 50.3%
Chemical manufacturing except pharmaceutical manufacturing 48.4%
Basic chemical manufacturing 43.2%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  47.0%
Pharmaceutical manufacturing 59.0%
Paint, coating and adhesive manufacturing 57.9%
Pesticide, fertilizer and other agricultural chemical manufacturing, soap, cleaning compound and toilet preparation manufacturing, and other chemical product manufacturing 47.2%
Plastics and rubber products manufacturing 57.8%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 59.9%
Motor vehicle plastic parts manufacturing 61.9%
Rubber product manufacturing 42.2%
Non-metallic mineral product manufacturing 37.6%
Primary metal manufacturing 41.9%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 46.1%
Alumina and aluminum production and processing 36.6%
Ferrous metal foundries 29.7%
Non-ferrous metal foundries 48.3%
Fabricated metal product manufacturing 30.0%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 41.7%
Architectural and structural metals manufacturing 30.6%
Boiler, tank and shipping container manufacturing 42.2%
Machine shops, turned product and screw, nut and bolt manufacturing 19.2%
Coating, engraving, heat treatment and allied activities 15.1%
Machinery manufacturing 57.1%
Other machinery manufacturingFootnote p 59.9%
Mining and oil and gas field machinery manufacturing 40.4%
Sawmill and woodworking machinery manufacturing 50.3%
Rubber and plastics industry machinery manufacturing 57.8%
Computer and electronic product manufacturing 61.8%
Computers and peripheral equipment manufacturing 65.3%
Communications equipment manufacturing 67.6%
Telephone apparatus manufacturing 61.1%
Radio and television broadcasting and wireless communications equipment 73.3%
Semiconductor and other electronic components manufacturing 58.9%
Navigational and guidance instruments manufacturing 62.2%
Electrical equipment, appliance and component manufacturing 56.3%
Electrical lighting equipment manufacturing 74.8%
Household appliance manufacturing 72.6%
Electric equipment manufacturing 47.4%
Other electrical equipment and component manufacturing 52.7%
Motor vehicle manufacturing 44.4%
Motor vehicle body and trailer manufacturing 47.9%
Motor vehicle parts manufacturing 39.3%
Aerospace product and parts manufacturing 48.4%
Railroad rolling stock manufacturing 54.5%
Ship and boat building 43.5%
Other transportation equipment manufacturing 43.8%
Furniture and related product manufacturing 37.8%
Miscellaneous manufacturing 52.6%
Medical equipment and supplies manufacturing 70.1%
Table A-3 — Percentage of manufacturers who involved outside organizations in the development of product innovations, by industry (2007–2009)
Manufacturing 27.1%
Food manufacturing and beverage manufacturing 29.4%
Food manufacturing 28.7%
Dairy product manufacturing 25.2%
Textile mills and textile product mills 35.6%
Textile mills 29.7%
Clothing manufacturing 15.9%
Cut and sew clothing manufacturing 15. 9%
Leather and allied product manufacturing 35.6%
Wood product manufacturing 32.3%
Veneer, plywood and engineered wood product manufacturing 7.5%
Paper manufacturing 28.4%
Pulp, paper, and paperboard mills 11.0%
Converted paper product manufacturing 33.2%
Petroleum and coal product manufacturing 35.6%
Chemical manufacturing 25.7%
Chemical manufacturing except pharmaceutical manufacturing 21.7%
Basic chemical manufacturing 11.4%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  36.3%
Pharmaceutical manufacturing 41.7%
Paint, coating and adhesive manufacturing 11.7%
Pesticide, fertilizer and other agricultural chemical manufacturing, soap, cleaning compound and toilet preparation manufacturing, and other chemical product manufacturing 24.7%
Plastics and rubber products manufacturing 41.5%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 42.3%
Motor vehicle plastic parts manufacturing 38.4%
Non-metallic mineral product manufacturing 37.0%
Primary metal manufacturing 21.7%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 23.0%
Ferrous metal foundries 15.4%
Non-ferrous metal foundries 9.9%
Fabricated metal product manufacturing 26.3%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 22.8%
Architectural and structural metals manufacturing 17.6%
Machinery manufacturing 13.4%
Machinery manufacturingFootnote p 15.2%
Sawmill and woodworking machinery manufacturing 27.5%
Rubber and plastics industry machinery manufacturing 0.0%
Ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing 9.6%
Metalworking machinery manufacturing 5.5%
Computer and electronic product manufacturing 17.8%
Computers and peripheral equipment manufacturing 17.2%
Communications equipment manufacturing 9.6%
Telephone apparatus manufacturing 9.1%
Radio and television broadcasting and wireless communications equipment 8.9%
Semiconductor and other electronic components manufacturing 33.1%
Navigational and guidance instruments manufacturing 10.8%
Electrical equipment, appliance and component manufacturing 18.4%
Electrical lighting equipment manufacturing 29.0%
Household appliance manufacturing 24.8%
Electric equipment manufacturing 25.3%
Other electrical equipment and component manufacturing 5.2%
Transportation equipment manufacturing 24.3%
Motor vehicle manufacturing 11.1%
Motor vehicle body and trailer manufacturing 16.3%
Motor vehicle parts manufacturing 25.8%
Aerospace product and parts manufacturing 27.8%
Railroad rolling stock manufacturing 33.3%
Ship and boat building 27.7%
Furniture and related product manufacturing 19.6%
Miscellaneous manufacturing 31.4%
Table A-4 — Percentage of manufacturers (250+ employees) whose research and development decisions were made by or jointly with foreign parent, by industry (2009)
  R&D Location R&D Focus
Manufacturing 34.6% 34.2%
Food manufacturing and beverage manufacturing 22.4% 17.8%
Food manufacturing 21.1% 16.9%
Fruit and vegetable preserving and specialty food manufacturing 30.8% 23.1%
Dairy product manufacturing 22.2% 11.1%
Meat product manufacturing 0.0% 0.0%
Seafood product preparation and packaging 5.3% 5.3%
Beverage and tobacco product manufacturing 33.3% 26.3%
Clothing manufacturing 0.0% 0.0%
Cut and sew clothing manufacturing 0.0% 0.0%
Wood product manufacturing 12.1% 21.5%
Sawmills and wood preserving 0.0% 9.1%
Other wood product manufacturing 16.7% 25.0%
Paper manufacturing 41.1% 43.8%
Pulp, paper, and paperboard mills 33.3% 33.4%
Converted paper product manufacturing 50.0% 55.5%
Printing and related support activities 35.0% 30.0%
Chemical manufacturing 62.3% 55.9%
Chemical manufacturing except pharmaceutical manufacturing 50.3% 56.7%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  71.5% 71.5%
Pharmaceutical manufacturing 81.8% 54.6%
Plastics and rubber products manufacturing 34.0% 34.0%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 27.5% 27.5%
Non-metallic mineral product manufacturing 52.0% 68.0%
Primary metal manufacturing 56.4% 56.4%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 50.0% 50.0%
Fabricated metal product manufacturing 26.4% 31.0%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 38.9% 44.4%
Architectural and structural metals manufacturing 18.8% 18.8%
Machinery manufacturingFootnote p 33.8% 24.8%
Other machinery manufacturing 38.7% 25.8%
Ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing 14.3% 14.3%
Metalworking machinery manufacturing 0.0% 0.0%
Computer and electronic product manufacturing 40.9% 39.1%
Communications equipment manufacturing 27.2% 29.9%
Navigational and guidance instruments manufacturing 54.6% 54.6%
Electrical equipment, appliance and component manufacturing 46.0% 50.7%
Transportation equipment manufacturing 44.8% 41.7%
Motor vehicle body and trailer manufacturing 0.0% 11.1%
Motor vehicle parts manufacturing 51.1% 46.7%
Aerospace product and parts manufacturing 46.2% 38.5%
Furniture and related product manufacturing 16.7% 25.0%
Miscellaneous manufacturing 29.5% 29.5%
Table A-5 — Percentage of manufacturers who performed internal and/or outsourced research and development activities, by size of firmFootnote o (2009)
  In Canada Outside of Canada
  Internal Outsourced Internal Outsourced
Small 70.3% 9.4% 5.0% 1.1%
Medium 74.3% 8.9% 14.4% 2.3%
Large 72.2% 11.9% 30.5% 7.4%
Table A-6 — Percentage of manufacturers (250+ employees) who performed internal and/or outsourced research and development activities, by industry (2009)
  In Canada Outside of Canada
  Internal Outsourced Internal Outsourced
Manufacturing 72.2% 11.9% 30.5% 7.4%
Food manufacturing and beverage manufacturing 74.7% 16.5% 19.4% 9.7%
Food manufacturing 77.6% 15.5% 16.8% 5.9%
Fruit and vegetable preserving and specialty food manufacturing 61.5% 0.0% 30.8% 0.0%
Meat product manufacturing 88.9% 16.7% 0.0% 0.0%
Seafood product preparation and packaging 73.7% 31.6% 15.8% 15.8%
Bakery and tortillas manufacturing 83.3% 0.0% 16.7% 8.3%
Beverage and tobacco product manufacturing 52.5% 21.3% 35.4% 35.4%
Clothing manufacturing 85.7% 14.3% 10.6% 7.2%
Cut and sew clothing manufacturing 81.8% 18.2% 0.0% 9.1%
Wood product manufacturing 69.2% 12.6% 11.8% 0.0%
Sawmills and wood preserving 90.9% 9.1% 0.0% 0.0%
Paper manufacturing 67.3% 20.0% 27.1% 13.7%
Pulp, paper, and paperboard mills 77.8% 27.8% 16.7% 11.1%
Converted paper product manufacturing 55.6% 11.1% 38.9% 16.7%
Printing and related support activities 60.0% 0.0% 40.0% 0.0%
Chemical manufacturing 62.6% 3.5% 57.5% 20.6%
Chemical manufacturing except pharmaceutical manufacturing 61.9% 0.0% 59.4% 11.0%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  85.7% 0.0% 85.7% 0.0%
Pharmaceutical manufacturing 63.6% 9.1% 54.5% 36.4%
Plastics and rubber products manufacturing 77.7% 12.4% 30.1% 8.8%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 72.5% 15.0% 30.0% 7.5%
Non-metallic mineral product manufacturing 56.0% 0.0% 44.0% 0.0%
Primary metal manufacturing 71.3% 6.8% 21.5% 3.0%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 77.3% 4.5% 18.2% 4.5%
Fabricated metal product manufacturing 60.5% 14.9% 31.0% 6.5%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 55.6% 16.7% 50.0% 11.1%
Architectural and structural metals manufacturing 68.8% 25.0% 12.5% 6.3%
Machinery manufacturing 73.5% 10.8% 30.7% 1.7%
Other machinery manufacturingFootnote p 74.2% 12.9% 41.9% 0.0%
Ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing 85.7% 0.0% 0.0% 0.0%
Computer and electronic product manufacturing 90.8% 13.8% 35.8% 7.8%
Communications equipment manufacturing 100.0% 7.6% 30.4% 7.6%
Radio and television broadcasting and wireless communications equipment 100.0% 12.5% 50.0% 12.5%
Navigational and guidance instruments manufacturing 100.0% 0.0% 63.6% 0.0%
Electrical equipment, appliance and component manufacturing 88.6% 24.9% 50.7% 14.9%
Transportation equipment manufacturing 63.3% 14.9% 35.9% 6.3%
Motor vehicle body and trailer manufacturing 88.9% 22.2% 11.1% 0.0%
Motor vehicle parts manufacturing 53.3% 6.7% 35.6% 4.4%
Aerospace product and parts manufacturing 92.3% 30.8% 46.2% 7.7%
Furniture and related product manufacturing 86.1% 5.6% 16.7% 2.8%
Miscellaneous manufacturing 64.6% 5.9% 29.4% 0.0%
Table A-7 — Percentage of manufacturers who invested in product design, research and development facilities in Canada, by size of firmFootnote o (2007– 2009)
  Engineering Research and Development
  Obtained capacity by merger or acquisition Opened new facility or expanded capacity Closed an existing facility or contracted capacity Obtained capacity by merger or acquisition Opened new facility or expanded capacity Closed an existing facility or contracted capacity
Small 2.7% 5.8% 1.7% 3.0% 7.7% 1.9%
Medium 2.6% 7.5% 1.6% 2.3% 8.0% 1.8%
Large 5.7% 6.2% 5.3% 3.9% 10.5% 4.8%
Table A-8 — Percentage of manufacturers who invested in product design, research and development facilities in Canada, by industry (2007–2009)
  Obtained capacity by merger or acquisition Opened new facility or expanded capacity Closed an existing facility or contracted capacity
Manufacturing 3.0% 7.9% 2.1%
Food manufacturing and beverage manufacturing 2.1% 7.1% 0.3%
Food manufacturing 2.3% 7.2% 0.3%
Animal food manufacturing 7.1% 0.0% 0.0%
Fruit and vegetable preserving and specialty food manufacturing 8.6% 10.7% 2.5%
Dairy product manufacturing 0.0% 15.0% 0.0%
Meat product manufacturing 5.4% 6.5% 0.0%
Seafood product preparation and packaging 0.7% 0.0% 0.7%
Bakery and tortillas manufacturing 0.0% 11.3% 0.0%
Beverage and tobacco product manufacturing 0.0% 6.1% 0.0%
Beverage manufacturing 0.0% 5.5% 0.0%
Textile mills and textile product mills 4.5% 7.6% 3.2%
Textile mills 5.3% 5.0% 5.2%
Textile product mills 4.1% 9.1% 2.0%
Clothing manufacturing 0.5% 6.7% 2.3%
Cut and sew clothing manufacturing 0.0% 6.2% 2.7%
Leather and allied product manufacturing 0.0% 4.7% 2.8%
Wood product manufacturing 4.0% 7.0% 1.5%
Sawmills and wood preserving 0.0% 5.9% 1.4%
Veneer, plywood and engineered wood product manufacturing 5.7% 6.8% 2.8%
Other wood product manufacturing 5.6% 7.6% 1.1%
Paper manufacturing 3.0% 3.0% 3.1%
Pulp, paper, and paperboard mills 0.0% 0.0% 2.8%
Converted paper product manufacturing 3.7% 3.7% 3.1%
Printing and related support activities 5.2% 2.0% 1.7%
Petroleum and coal product manufacturing 3.9% 3.8% 3.9%
Chemical manufacturing 2.9% 14.2% 1.9%
Chemical manufacturing except pharmaceutical manufacturing 3.1% 13.7% 0.9%
Basic chemical manufacturing 5.7% 3.1% 0.0%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  6.4% 15.4% 5.2%
Pharmaceutical manufacturing 2.0% 16.3% 6.6%
Paint, coating and adhesive manufacturing 1.9% 13.6% 0.0%
Pesticide, fertilizer and other agricultural chemical manufacturing, soap, cleaning compound and toilet preparation manufacturing, and other chemical product manufacturing 2.1% 16.5% 0.6%
Plastics and rubber products manufacturing 3.1% 7.9% 1.0%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 2.3% 8.1% 0.5%
Motor vehicle plastic parts manufacturing 12.6% 6.3% 3.5%
Rubber product manufacturing 2.7% 7.8% 2.7%
Non-metallic mineral product manufacturing 4.1% 4.1% 0.6%
Primary metal manufacturing 5.7% 4.8% 0.5%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 6.3% 5.0% 1.1%
Alumina and aluminum production and processing 4.6% 0.0% 0.0%
Ferrous metal foundries 6.6% 3.5% 0.0%
Non-ferrous metal foundries 4.1% 9.6% 0.0%
Fabricated metal product manufacturing 2.7% 10.8% 0.9%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 0.8% 12.0% 0.0%
Architectural and structural metals manufacturing 4.8% 14.6% 0.2%
Boiler, tank and shipping container manufacturing 6.0% 15.6% 0.0%
Machine shops, turned product and screw, nut and bolt manufacturing 0.0% 5.1% 0.0%
Coating, engraving, heat treatment and allied activities 2.9% 2.9% 8.6%
Machinery manufacturing 4.5% 9.1% 1.8%
Other machinery manufacturingFootnote p 2.8% 8.3% 2.4%
Mining and oil and gas field machinery manufacturing 4.6% 13.1% 1.0%
Sawmill and woodworking machinery manufacturing 12.7% 0.0% 0.0%
Rubber and plastics industry machinery manufacturing 5.2% 5.2% 0.0%
Ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing 14.2% 18.1% 3.4%
Metalworking machinery manufacturing 3.1% 6.4% 0.0%
Computer and electronic product manufacturing 5.2% 11.5% 5.9%
Computers and peripheral equipment manufacturing 0.0% 22.1% 7.4%
Communications equipment manufacturing 8.9% 17.7% 4.1%
Telephone apparatus manufacturing 5.6% 22.2% 5.6%
Radio and television broadcasting and wireless communications equipment 14.6% 14.1% 5.6%
Semiconductor and other electronic components manufacturing 7.3% 17.8% 4.0%
Navigational and guidance instruments manufacturing 4.2% 4.3% 9.1%
Electrical equipment, appliance and component manufacturing 2.7% 15.4% 3.7%
Electrical lighting equipment manufacturing 0.0% 23.9% 4.6%
Household appliance manufacturing 9.0% 0.0% 0.0%
Electric equipment manufacturing 3.0% 13.9% 6.7%
Other electrical equipment and component manufacturing 1.4% 18.3% 1.6%
Transportation equipment manufacturing 1.6% 4.2% 5.2%
Motor vehicle manufacturing 5.6% 22.2% 0.0%
Motor vehicle body and trailer manufacturing 0.6% 1.7% 4.5%
Motor vehicle parts manufacturing 1.8% 1.3% 7.9%
Aerospace product and parts manufacturing 0.0% 11.8% 3.6%
Railroad rolling stock manufacturing 0.0% 9.1% 0.0%
Ship and boat building 2.7% 0.0% 0.0%
Other transportation equipment manufacturing 6.3% 12.5% 6.3%
Furniture and related product manufacturing 0.3% 6.9% 3.7%
Miscellaneous manufacturing 0.6% 6.4% 5.6%
Medical equipment and supplies manufacturing 0.7% 6.3% 12.4%
Table A-9 — Percentage of manufacturers who invested in product design, research and development facilities outside of Canada, by size of firmFootnote o (2007–2009)
  Engineering Research and Development
  Obtained capacity by merger or acquisition Opened new facility or expanded capacity Closed an existing facility or contracted capacity Obtained capacity by merger or acquisition Opened new facility or expanded capacity Closed an existing facility or contracted capacity
Small 1.9% 2.0% 0.3% 2.5% 1.3% 0.7%
Medium 1.9% 2.9% 1.3% 1.8% 2.6% 2.1%
Large 8.2% 5.9% 4.2% 8.1% 7.9% 3.4%
Table A-10 — Percentage of manufacturers who indicated intellectual property as an obstacle to innovation, by industry (2009)
Manufacturing 8.0%
Food manufacturing and beverage manufacturing 7.4%
Food manufacturing 7.4%
Animal food manufacturing 21.8%
Fruit and vegetable preserving and specialty food manufacturing 4.9%
Dairy product manufacturing 4.5%
Meat product manufacturing 3.1%
Seafood product preparation and packaging 2.9%
Bakery and tortillas manufacturing 3.1%
Beverage and tobacco product manufacturing 6.9%
Beverage manufacturing 7.3%
Textile mills and textile product mills 13.4%
Textile mills 8.5%
Textile product mills 16.3%
Clothing manufacturing 2.1%
Cut and sew clothing manufacturing 0.0%
Leather and allied product manufacturing 14.2%
Wood product manufacturing 3.3%
Sawmills and wood preserving 6.5%
Veneer, plywood and engineered wood product manufacturing 5.7%
Other wood product manufacturing 0.9%
Paper manufacturing 4.4%
Pulp, paper, and paperboard mills  10.0%
Converted paper product manufacturing 3.2%
Printing and related support activities 2.0%
Petroleum and coal product manufacturing 7.7%
Chemical manufacturing 17.5%
Chemical manufacturing except pharmaceutical manufacturing 15.9%
Basic chemical manufacturing 11.3%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  11.3%
Pharmaceutical manufacturing 24.4%
Paint, coating and adhesive manufacturing 17.0%
Pesticide, fertilizer and other agricultural chemical manufacturing, soap, cleaning compound and toilet preparation manufacturing, and other chemical product manufacturing 17.8%
Plastics and rubber products manufacturing 14.6%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 15.1%
Motor vehicle plastic parts manufacturing 10.5%
Rubber product manufacturing 13.3%
Non-metallic mineral product manufacturing 3.8%
Primary metal manufacturing 3.5%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 6.0%
Alumina and aluminum production and processing 0.0%
Ferrous metal foundries 3.1%
Non-ferrous metal foundries 0.0%
Fabricated metal product manufacturing 4.1%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 3.3%
Architectural and structural metals manufacturing 2.9%
Boiler, tank and shipping container manufacturing 3.0%
Machine shops, turned product and screw, nut and bolt manufacturing 6.2%
Coating, engraving, heat treatment and allied activities 6.5%
Machinery manufacturing 13.6%
Other machinery manufacturingFootnote p 14.6%
Mining and oil and gas field machinery manufacturing 10.4%
Sawmill and woodworking machinery manufacturing 25.0%
Rubber and plastics industry machinery manufacturing 20.8%
Ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing 15.3%
Metalworking machinery manufacturing 9.2%
Computer and electronic product manufacturing 16.7%
Computers and peripheral equipment manufacturing 15.3%
Communications equipment manufacturing 20.4%
Telephone apparatus manufacturing 22.2%
Radio and television broadcasting and wireless communications equipment 29.9%
Semiconductor and other electronic components manufacturing 16.5%
Navigational and guidance instruments manufacturing 18.9%
Electrical equipment, appliance and component manufacturing 19.5%
Electrical lighting equipment manufacturing 20.0%
Household appliance manufacturing 27.2%
Electric equipment manufacturing 9.4%
Other electrical equipment and component manufacturing 27.0%
Transportation equipment manufacturing 7.7%
Motor vehicle manufacturing 11.1%
Motor vehicle body and trailer manufacturing 4.7%
Motor vehicle parts manufacturing 6.6%
Aerospace product and parts manufacturing 8.3%
Railroad rolling stock manufacturing 9.1%
Ship and boat building 16.4%
Other transportation equipment manufacturing 12.5%
Furniture and related product manufacturing 3.6%
Miscellaneous manufacturing 7.3%
Medical equipment and supplies manufacturing 11.6%
Table A-11 — Percentage of manufacturers who indicated intellectual property violation as a significant obstacle to exporting, by industry (2007–2009)
Manufacturing 15.2%
Food manufacturing and beverage manufacturing 13.7%
Food manufacturing 14.0%
Animal food manufacturing 0.0%
Fruit and vegetable preserving and specialty food manufacturing 10.6%
Meat product manufacturing 0.0%
Seafood product preparation and packaging 5.6%
Beverage and tobacco product manufacturing 9.4%
Beverage manufacturing 7.5%
Textile mills and textile product mills 22.4%
Textile mills 27.2%
Textile product mills 18.2%
Clothing manufacturing 23.9%
Leather and allied product manufacturing 12.2%
Wood product manufacturing 2.9%
Sawmills and wood preserving 9.0%
Veneer, plywood and engineered wood product manufacturing 0.0%
Other wood product manufacturing 0.0%
Paper manufacturing 5.7%
Pulp, paper, and paperboard mills  8.7%
Converted paper product manufacturing 4.7%
Printing and related support activities 7.0%
Petroleum and coal product manufacturing 18.9%
Chemical manufacturing 17.3%
Chemical manufacturing except pharmaceutical manufacturing 12.6%
Basic chemical manufacturing 3.5%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  0.0%
Pharmaceutical manufacturing 35.6%
Paint, coating and adhesive manufacturing 13.9%
Pesticide, fertilizer and other agricultural chemical manufacturing, soap, cleaning compound and toilet preparation manufacturing, and other chemical product manufacturing 19.6%
Plastics and rubber products manufacturing 13.9%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 14.2%
Motor vehicle plastic parts manufacturing 26.6%
Rubber product manufacturing 6.3%
Non-metallic mineral product manufacturing 22.0%
Primary metal manufacturing 9.3%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 10.8%
Alumina and aluminum production and processing 14.4%
Ferrous metal foundries 0.0%
Non-ferrous metal foundries 11.8%
Fabricated metal product manufacturing 9.9%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 17.7%
Architectural and structural metals manufacturing 0.8%
Boiler, tank and shipping container manufacturing 5.6%
Coating, engraving, heat treatment and allied activities 0.0%
Machinery manufacturing 25.9%
Other machinery manufacturingFootnote p 30.2%
Mining and oil and gas field machinery manufacturing 20.6%
Sawmill and woodworking machinery manufacturing 18.5%
Rubber and plastics industry machinery manufacturing 18.6%
Metalworking machinery manufacturing 11.4%
Computer and electronic product manufacturing 20.7%
Computers and peripheral equipment manufacturing 24.2%
Communications equipment manufacturing 38.3%
Telephone apparatus manufacturing 40.0%
Radio and television broadcasting and wireless communications equipment 36.6%
Semiconductor and other electronic components manufacturing 9.3%
Navigational and guidance instruments manufacturing 17.9%
Electrical equipment, appliance and component manufacturing 23.3%
Electrical lighting equipment manufacturing 14.6%
Household appliance manufacturing 39.9%
Electric equipment manufacturing 24.5%
Other electrical equipment and component manufacturing 18.3%
Transportation equipment manufacturing 17.4%
Motor vehicle body and trailer manufacturing 20.5%
Motor vehicle parts manufacturing 12.1%
Aerospace product and parts manufacturing 24.3%
Railroad rolling stock manufacturing 30.0%
Ship and boat building 31.0%
Furniture and related product manufacturing 4.1%
Miscellaneous manufacturing 20.8%
Table A-12 — Percentage of manufacturers who adopted advanced computerized design and engineering technology, by industry (2009)
Manufacturing 42.2%
Food manufacturing and beverage manufacturing 16.9%
Food manufacturing 17.5%
Animal food manufacturing 17.0%
Fruit and vegetable preserving and specialty food manufacturing 20.6%
Dairy product manufacturing 20.9%
Meat product manufacturing 16.8%
Seafood product preparation and packaging 6.5%
Bakery and tortillas manufacturing 14.6%
Beverage and tobacco product manufacturing 7.7%
Beverage manufacturing 8.2%
Textile mills and textile product mills 31.3%
Textile mills 33.0%
Textile product mills 30.3%
Clothing manufacturing 27.9%
Cut and sew clothing manufacturing 30.8%
Leather and allied product manufacturing 21.7%
Wood product manufacturing 36.0%
Sawmills and wood preserving 19.7%
Paper manufacturing 30.3%
Pulp, paper, and paperboard mills 21.4%
Converted paper product manufacturing 32.3%
Printing and related support activities 28.7%
Petroleum and coal product manufacturing 23.0%
Chemical manufacturing 17.9%
Chemical manufacturing except pharmaceutical manufacturing 17.1%
Basic chemical manufacturing 18.3%
Resin synthetic rubber and artificial synthetic fibres and filaments manufacturing  37.6%
Pharmaceutical manufacturing 21.2%
Paint, coating and adhesive manufacturing 15.5%
Pesticide, fertilizer and other agricultural chemical manufacturing, soap, cleaning compound and toilet preparation manufacturing, and other chemical product manufacturing 13.5%
Plastics and rubber products manufacturing 48.9%
Plastic product manufacturing except motor vehicle plastic parts manufacturing 50.7%
Motor vehicle plastic parts manufacturing 55.7%
Rubber product manufacturing 34.0%
Non-metallic mineral product manufacturing 36.8%
Primary metal manufacturing 42.8%
Iron and steel mills and ferro-alloy manufacturing; steel product manufacturing from purchased steel; non-ferrous metal (except aluminium) production and process 31.6%
Alumina and aluminum production and processing 36.3%
Ferrous metal foundries 55.9%
Non-ferrous metal foundries 65.3%
Fabricated metal product manufacturing 45.0%
Forging and stamping; cutlery and hand tool manufacturing; hardware manufacturing; spring and wire product manufacturing; other fabricated metal product manufacturing 52.2%
Architectural and structural metals manufacturing 45.6%
Boiler, tank and shipping container manufacturing 64.4%
Machine shops, turned product and screw, nut and bolt manufacturing 43.2%
Coating, engraving, heat treatment and allied activities 12.2%
Machinery manufacturing 66.6%
Other machinery manufacturingFootnote p 61.7%
Mining and oil and gas field machinery manufacturing 54.0%
Sawmill and woodworking machinery manufacturing 72.3%
Rubber and plastics industry machinery manufacturing 68.5%
Metalworking machinery manufacturing 82.6%
Computer and electronic product manufacturing 63.4%
Computers and peripheral equipment manufacturing 46.0%
Communications equipment manufacturing 77.1%
Telephone apparatus manufacturing 61.1%
Radio and television broadcasting and wireless communications equipment 76.7%
Semiconductor and other electronic components manufacturing 70.2%
Navigational and guidance instruments manufacturing 61.1%
Electrical equipment, appliance and component manufacturing 60.9%
Electrical lighting equipment manufacturing 58.9%
Household appliance manufacturing 68.1%
Electric equipment manufacturing 67.7%
Other electrical equipment and component manufacturing 52.6%
Transportation equipment manufacturing 55.0%
Motor vehicle manufacturing 66.7%
Motor vehicle body and trailer manufacturing 57.7%
Motor vehicle parts manufacturing 54.9%
Aerospace product and parts manufacturing 60.0%
Railroad rolling stock manufacturing 72.7%
Ship and boat building 29.8%
Other transportation equipment manufacturing 56.3%
Furniture and related product manufacturing 49.0%
Miscellaneous manufacturing 50.0%

Footnotes

Footnote 1

A product innovation is the market introduction of a new or significantly improved good with respect to its capabilities, user-friendliness, components or sub-systems. Product innovations (new or improved) must be new to the enterprise, but they do not need to be new to its market. Product innovations could have been originally developed within the enterprise or by other enterprises.

Return to footnote a referrer

Footnote 2

Small = 20-99 employees; medium = 100-499 employees; and large = at least 500 employees.

Return to footnote b referrer

Footnote 3

"All other industries" includes: agriculture, forestry, fishing and hunting; mining, quarrying, and oil and gas extraction; utilities; construction; wholesale trade; retail trade; transportation and warehousing; information and cultural industries; finance and insurance; real estate and rental and leasing; professional, scientific and technical services; management of companies and enterprises; and administrative and support, waste management and remediation services.

Return to footnote c referrer

Footnote 4

Open innovation includes sourcing and integrating external knowledge of customers, suppliers, universities and research organizations, and competitors, as well as gaining revenue from un-commercialized IP portfolios.

Return to footnote d referrer

Footnote 5

Small = 20-99 employees; medium = 100-499 employees; and large = at least 500 employees.

Return to footnote e referrer

Footnote 6

Small = 20-99 employees; medium = 100-499 employees; and large = at least 500 employees.

Return to footnote f referrer

Footnote 7

Small = 20-99 employees; medium = 100-499 employees; and large = at least 500 employees.

Return to footnote g referrer

Footnote 8

Trade secrets are usually formulas, patterns, compilations, devices, processes, codes, and data that are specific to its owner, that give a firm a business advantage over a competitor, and that are kept secret or confidential.

Return to footnote h referrer

Footnote 9

A patent gives the right to exclude others from making, using or selling an invention.Footnote 19

Return to footnote i referrer

Footnote 10

BiC firms are the top 20% performers in the following three metrics: percentage of products launched/delivered on time; increase in product revenue since engaging in a global PDR&D initiative; and decrease in PDR&D costs. Laggards represent the bottom 30% of firms benchmarked to the same metrics.

Return to footnote j referrer

Footnote 11

Small = 20-99 employees; medium = 100-499 employees; and large = at least 500 employees.

Return to footnote k referrer

Footnote 12

Advanced technologies are new technologies that perform a new function or improve some function significantly more than commonly used technologies in the industry or by competitors.

Return to footnote l referrer

Footnote 13

BiC firms are the top 20 percent performers in the following three metrics: percentage of products launched/delivered on time; increase in product revenue since engaging in a global PDR&D initiative; and decrease in PDR&D costs. Laggards represent the bottom 30 percent of firms benchmarked to the same metrics.

Return to footnote m referrer

Footnote 14

"Design translation tools" refer to software solutions that convert computer-aided design (CAD) files from one format to another. These tools facilitate collaborative design when partners use CAD systems that are not interoperable.

Return to footnote n referrer

Footnote 15

Small = 20-99 employees; medium = 100-499 employees; and large = at least 500 employees.

Return to first footnote o referrer

Footnote 16

Machinery manufacturing except mining and oil and gas field machinery manufacturing; sawmill and woodworking machinery manufacturing; rubber and plastics industry machinery manufacturing; ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing; and metalworking machinery manufacturing.

Return to first footnote p referrer

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Cat. No.: Iu44-60/2012
ISBN: 978-1-100-51673-8
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Aussi offert en français sous le titre Conception, recherche et développement de produits

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