Indicators and targets: Support global growth through industry-led innovation

 Jobs and innovation: Tracking progress and results

Research, technology and commercialization

Target: Grow up to 5 world-leading superclusters in Canada by 2025
Target: Increase Canadian business expenditures in research and development (R&D) to $30 billion by 2025, keeping pace with OECD average as a percentage of GDP

Figure 5.1: Business Expenditures on R&D (BERD) (in $billions)

Canadian business expenditures on R&D have remained at relatively the same level since 2006.

Description of Figure 5.1
Figure 5.1: Business Expenditures on R&D (BERD) (in $billions)
Year BERD in Canada (in $billions)

Sources:

1981 2.1
1982 2.5
1983 2.6
1984 3.0
1985 3.6
1986 4.0
1987 4.3
1988 4.6
1989 4.8
1990 5.2
1991 5.4
1992 5.7
1993 6.4
1994 7.6
1995 8.0
1996 8.0
1997 8.7
1998 9.7
1999 10.4
2000 12.4
2001 14.3
2002 13.5
2003 14.1
2004 15.1
2005 15.6
2006 16.5
2007 16.8
2008 16.6
2009 16.0
2010 15.8
2011 16.9
2012 16.7
2013 16.6
2014 18.2
2015 17.2
2016 16.6 (preliminary)

Figure 5.2: Business Expenditures on R&D (BERD), as % of GDP

Overall, Canada's business expenditures on R&D (BERD) as a share of GDP are well below the OECD average and have continued to fall since its peak in 2001. Increasing business spending on R&D would see Canada's spending levels move closer to peer countries internationally, driving new discoveries and innovation.

Description of Figure 5.2
Figure 5.2: Business Expenditures on R&D (BERD), as % of GDP
Year BERD Intensity (CAN) BERD Intensity (OECD Average)

Sources:

1981 0.58% 1.20%
1982 0.64% 1.27%
1983 0.62% 1.31%
1984 0.66% 1.36%
1985 0.73% 1.45%
1986 0.77% 1.46%
1987 0.76% 1.46%
1988 0.74% 1.45%
1989 0.71% 1.46%
1990 0.75% 1.48%
1991 0.77% 1.42%
1992 0.80% 1.38%
1993 0.86% 1.33%
1994 0.96% 1.30%
1995 0.96% 1.31%
1996 0.93% 1.34%
1997 0.97% 1.37%
1998 1.03% 1.40%
1999 1.04% 1.44%
2000 1.12% 1.47%
2001 1.25% 1.49%
2002 1.14% 1.44%
2003 1.13% 1.44%
2004 1.14% 1.42%
2005 1.10% 1.45%
2006 1.10% 1.49%
2007 1.06% 1.52%
2008 1.01% 1.57%
2009 1.02% 1.56%
2010 0.95% 1.52%
2011 0.95% 1.56%
2012 0.92% 1.57%
2013 0.87% 1.60%
2014 0.91% 1.63%
2015 0.86% 1.63%
2016 0.82% 1.62%

Figure 5.3: Gross Expenditures on R&D (GERD), as % of GDP

Overall, Canada's gross domestic expenditures on R&D (GERD) are well below the OECD average and have continued to fall over the past 10 years.

GERD represents all spending on research and development by companies, research institutes, universities, and government labs.

Description of Figure 5.3
Figure 5.3: Gross Expenditures on R&D (GERD), as % of GDP
Year GERD Intensity (CAN) GERD Intensity (OECD Average)

Sources:

1981 1.20% 1.84%
1982 1.34% 1.92%
1983 1.31% 1.97%
1984 1.35% 2.03%
1985 1.39% 2.13%
1986 1.42% 2.13%
1987 1.38% 2.14%
1988 1.36% 2.12%
1989 1.42% 2.13%
1990 1.48% 2.16%
1991 1.54% 2.09%
1992 1.58% 2.05%
1993 1.64% 2.00%
1994 1.69% 1.96%
1995 1.66% 1.96%
1996 1.61% 1.98%
1997 1.62% 2.01%
1998 1.72% 2.04%
1999 1.76% 2.08%
2000 1.86% 2.12%
2001 2.03% 2.16%
2002 1.98% 2.14%
2003 1.97% 2.14%
2004 2.00% 2.11%
2005 1.98% 2.14%
2006 1.95% 2.17%
2007 1.91% 2.21%
2008 1.86% 2.28%
2009 1.92% 2.33%
2010 1.83% 2.29%
2011 1.79% 2.32%
2012 1.78% 2.31%
2013 1.71% 2.34%
2014 1.72% 2.36%
2015 1.65% 2.36%
2016 1.60% 2.35%

Figure 5.4: Higher Education Expenditures on R&D (HERD), as % of GDP

In terms of higher education expenditures on R&D (HERD), Canada has performed well and has ranked consistently above the OECD average.

Description of Figure 5.4
Figure 5.4: Higher Education Expenditures on R&D (HERD), as % of GDP
Year HERD intensity (CAN) HERD intensity (OECD Average)

Sources:

1981 0.32% 0.27%
1982 0.35% 0.28%
1983 0.35% 0.28%
1984 0.33% 0.28%
1985 0.33% 0.28%
1986 0.33% 0.29%
1987 0.32% 0.30%
1988 0.34% 0.30%
1989 0.43% 0.30%
1990 0.44% 0.31%
1991 0.47% 0.31%
1992 0.49% 0.32%
1993 0.49% 0.33%
1994 0.47% 0.32%
1995 0.45% 0.32%
1996 0.43% 0.32%
1997 0.43% 0.33%
1998 0.47% 0.33%
1999 0.51% 0.34%
2000 0.53% 0.34%
2001 0.56% 0.36%
2002 0.63% 0.37%
2003 0.65% 0.38%
2004 0.68% 0.38%
2005 0.67% 0.38%
2006 0.65% 0.37%
2007 0.65% 0.38%
2008 0.66% 0.39%
2009 0.69% 0.43%
2010 0.68% 0.43%
2011 0.67% 0.43%
2012 0.70% 0.42%
2013 0.67% 0.42%
2014 0.65% 0.42%
2015 0.66% 0.41%
2016 0.66% 0.42%
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