Research in Motion (RIM) remains Canada’s top corporate R&D spender, devoting nearly $1.4 billion to research, an increase of 26.3% over Fiscal 2009. RIM’s spending on research expanded slightly faster than its revenues (up 20.1%) according to a study by Research Infosource.
Twenty-two companies qualified for Research Infosource’s elite $100 Million Club, firms that reported $100 million or more in research spending in Fiscal 2010. Together these companies spent $6.67 billion in Fiscal 2010, accounting for 71% of total spending. Among the 20 companies in the Club both years, 9 companies increased their spending, while 10 posted decreased and 1 remained flat between Fiscal 2009 and Fiscal 2010.
“2010 is not unique. In the past 10 years Research Infosource has documented spending drops over 7 years. Yet, during that period, company revenues have increased in all but 2 years,” added Freedman. “So, there does not appear to be a strong relationship between R&D spending and corporate revenues. Clearly, other factors are at play in the anemic performance.”
Certainly, government incentive programs play a role. So too do global trends; for example, the migration of manufacturing activity to the Far East. Also contributing is the changing nature of corporate R&D itself.
In decades past most R&D was performed by in-house corporate research labs, whereas today those labs have largely disappeared. The economy is facing new headwinds in the form of a global slowdown. It remains to be seen how deep this will be and what its effect will be on the corporate R&D scene.
Total research income for Canada's Top 100 R&D Corporations was $9.4 billion in Fiscal 2010, down from $10.4 billion in Fiscal 2009, a 9.4% decrease over Fiscal 2009. According to Canada’s Top 100 Corporate R&D Spenders List 2011, released today, this continues a negative trend in R&D spending for the 5th consecutive year. However revenues increased among the 92 companies that reported by 4.7%. This year’s revenue-bucking trend is not unique. In 6 out of the past 9 years, R&D spending dropped, while revenues increased. In Fiscal 2010, 48 companies posted R&D spending increases, 48 declines and
Canada’s Top 100 Corporate R&D Spenders List 2011 is available on the Research Infosource website, www.researchinfosource.com/latestlist.