ICT Sector Intramural R–D Expenditures

Last Update: October 2012

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ICT Sector Intramural R&D Expenditures, 2011

ICT sector R&D expenditures rebounded in 2011 after three years of decline. In 2011 ICT sector R&D expenditures were $5.3 billion, which represents an increase of 7.0% from 2010. ICT R&D expenditures increased by only 1.2% over the 2002–2011 period, a much slower growth than the total Canadian private sector R&D expenditures (15.5%). As a result, the ICT sector share of total Canadian private sector R&D spending has been falling since 2002, accounting for 34.1% of 2011 total in comparison to 39.0% in 2002.

At the industry level, the communications equipment industry posted the largest nominal growth in 2011 ($242 million), while the largest drop was recorded by the instruments industry ($39 million).

Since 2002, R&D spending in the ICT manufacturing sub–sector has declined by 27.2%. The largest declines over this period were in the computer and peripheral equipment (–77.0%) industry, followed by the electronic components (–38.5%) and communications equipment (–30.5%) industries. In the case of the electronic components industry, the drop in R&D spending was amplified by the reclassification of one or more companies towards the wholesaling industry in 2008.

In the ICT services sub–sector, R&D spending has increased by 36.6% since 2002 with the largest increases in the data processing (449%) and communications services (216%) industries. However, it is important to note that; a) the data processing industry is relatively small and only accounts for 3.4% of total ICT services sub–sector R&D and b) that the communications services industry’s R&D reached a peak in 2004 and has been declining since, though it rebounded this year.

In the ICT wholesaling industries, R&D increased by 9.5% in 2011, totalling $524 million.

The manufacturing industries, as a percentage of total ICT sector R&D, decreased from 65% in 2002 to 47% in 2011. During the same period, the share of the services industries grew from 32% to 43% and the share of the wholesaling industries increased from 2.7% to 9.8%. As mentioned earlier, reclassification of one or more companies from the manufacturing industries towards the wholesaling industries in 2008 amplified the shift in these shares.

The total Canadian private sector R&D expenditures in 2011 were $15.6 billion, up 5.0% from the previous year.

ICT Sector Intramural R&D Expenditures, 2002–2011 (Manufacturing and Services)
NAICS 2002 Industry ($'000,000) 2002 2003 2004 2005 2006 2007 2008 2009p 2010i 2011i
1 NAICS 33421, 33422 and 33592 are combined to maintain confidentiality among respondents (excluding NAICS 33429 which is not part of the ICT definition).

2 NAICS 53242, ICT rental and leasing, is included in ICT wholesaling.
Source: Statistics Canada (p=planned for 2008, i=intentions for 2009).
Due to rounding, numbers may not sum exactly to totals.
See Sources and Technical Notes for more details.
33331 Commercial and Service Industry Machinery Manufacturing 37 43 43 65 56 61 75 164 180 186
33411 Computer and Peripheral Equipment Manufacturing 206 192 165 156 112 110 105 59 44 47
3342/33592 Communications Equipment and Communication Wire and Cable Manufacturing1 2,007 1,694 1,486 1,379 1,456 1,471 1,447 1,523 1,153 1,395
33431 Audio and Video Equipment Manufacturing 13 15 18 11 10 17 16 15 16 16
33441 Semiconductor and Other Electronic Component Manufacturing 811 743 811 849 847 849 452 505 514 499
33451 Navigational, Measuring, Medical and Control Instruments Manufacturing 369 365 383 482 451 402 416 416 403 364
  Total ICT Manufacturing 3,444 3,052 2,907 2,943 2,932 2,911 2,511 2,683 2,309 2,508
51121 Software Publishers 390 468 393 558 634 703 686 493 495 497
517 Communications Services (including Telecom and Cable/Other Program Distribution) 191 604 832 823 804 704 598 537 544 605
51821 Data Processing, Hosting and Related Services 14 15 19 20 25 34 49 57 63 78
54151 Computer Systems Design and Related Services 1,087 1,120 1,176 1,152 1,178 1,286 1,234 1,069 1,097 1,123
81121 Electronic and Precision Equipment Repair and Maintenance 8 9 6 8 7 17 9 7 7 8
  Total ICT Services 1,691 2,216 2,425 2,561 2,649 2,745 2,575 2,163 2,206 2,310
  ICT Wholesaling
(NAICS 4173/41791)2		 145 169 193 186 184 213 560 492 478 524
  Total ICT Sector 5,280 5,437 5,525 5,691 5,760 5,869 5,647 5,338 4,993 5,341
  TOTAL CANADIAN PRIVATE SECTOR R&D 13,545 14,094 15,144 15,638 16,474 16,756 16,409 15,110 14,895 15,646
  ICT R&D as a PERCENTAGE of CANADIAN PRIVATE SECTOR R&D 39.0% 38.6% 36.5% 36.4% 35.0% 35.0% 34.4% 35.3% 33.5% 34.1%

Growth in ICT Sector Intramural R&D Expenditures, 2002–2011 (Manufacturing and Services)
NAICS 2002 Industry % Change
2010–2011		 % Change
2002–2011		 CAGR
2002–2011
1 NAICS 33421, 33422 and 33592 are combined to maintain confidentiality among respondents (excluding NAICS 33429 which is not part of the ICT definition).
2 NAICS 53242, ICT rental and leasing, is included in ICT wholesaling.

Source: Statistics Canada (p=planned for 2008, i=intentions for 2009).
Due to rounding, numbers may not sum exactly to totals.
See Sources and Technical Notes for more details.
33331 Commercial and Service Industry Machinery Manufacturing 3.3% 400.6% 19.6%
33411 Computer and Peripheral Equipment Manufacturing 8.7% –77.0% –15.1%
3342/33592 Communications Equipment and Communication Wire and Cable Manufacturing1 21.0% –30.5% –4.0%
33431 Audio and Video Equipment Manufacturing 3.5% 25.9% 2.6%
33441 Semiconductor and Other Electronic Component Manufacturing –2.9% –38.5% –5.3%
33451 Navigational, Measuring, Medical and Control Instruments Manufacturing –9.5% –1.4% –0.2%
  Total ICT Manufacturing 8.6% –27.2% –3.5%
51121 Software Publishers 0.4% 27.3% 2.7%
517 Communications Services (including Telecom and Cable/Other Program Distribution) 11.2% 216.2% 13.6%
51821 Data Processing, Hosting and Related Services 24.1% 448.6% 20.8%
54151 Computer Systems Design and Related Services 2.3% 3.3% 0.4%
81121 Electronic and Precision Equipment Repair and Maintenance 9.9% –5.8% –0.7%
  Total ICT Services 4.7% 36.6% 3.5%
  ICT Wholesaling (NAICS 4173/41791)2 9.5% 260.9% 15.3%
  Total ICT Sector 7.0% 1.2% 0.1%
  TOTAL CANADIAN PRIVATE SECTOR R&D 5.0% 15.5% 1.6%


Distribution of R&D Expenditures by ICT Industry, 2011 (Total: $5.3 Billion)
Graphic Description

Indexed Growth in R&D Expenditures for the ICT Sector and the Canadian Private Sector, 2002-2011
Graphic Description

Indexed Growth in R&D Expenditures by ICT Segment, 2002-2011
Graphic Description