State of Design: The Canadian Report 2010

Product Design and Development Investment
Long Description

Figure 3

Product Design and Development Investment Volume — 2008⁵

$ billions
	In-house	Outsourced
Industrial electronics	4.4	0.9
Motor vehicle	1.0	2.8
Chemical	2.3	1.0
Machinery	2.5	0.5
Aerospace	2.1	0.4
Motor vehicle parts	1.6	0.4
Primary metal	1.7	0.3
Fabricated metal	1.5	0.4
Paper	1.4	0.3
Plastics and rubber	0.9	0.7

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Figure 4

Product Design and Development Investment Intensity — 2008⁵

% of sales
	In-house	Outsourced
Industrial electronics	23.1%	4.8%
Electrical equipment	12.1%	2.4%
Aerospace	11.6%	2.0%
Motor vehicle parts	7.5%	2.0%
Furniture	7.7%	1.6%
Machinery	7.5%	1.6%
Motor vehicle	2.2%	6.0%
Clothing	5.5%	1.4%
Plastics and rubber	3.9%	2.8%
Chemical	4.5%	2.0%

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Figure 5

Product Design and Development Investment Model — 2008⁵

% of PD&D investment
	In–house	Outsourced
Motor vehicle body and trailer	14.27%	85.73%
Aerospace	14.72%	85.28%
Industrial electronics	17.31%	82.69%
Machinery	17.87%	82.13%
Motor vehicle parts	21.10%	78.90%
Chemical	30.67%	69.33%
Plastics and rubber	41.66%	58.34%
Motor vehicle	73.59%	26.41%

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Figure 6

Forecast of Product Design and Development Oursourcing —
2005 to 2012⁶

Industry Average
	$ billions
2005	10.5
2006	10.6
2007	10.5
2008	9.5
2009	8.9
2010	9.4
2011	9.9
2012	10.6

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Figure 7

Product Design and Development Outsourcing by Industry — 2009 to 2012⁶

	Average Annual Growth Rate
Machinery	8.9%
Wood product	10.6%
Motor vehicle parts	10.7%
Fabricated metal	10.8%
Electrical equipment	14.2%
Aerospace	16.2%
Industry average	6.8

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