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Planned expenditures on research and development (R&D) in Canadian industry were expected to rise to about $9.6 billion in 1999, an increase of 4.8% over 1998. In 1998, there was an increase of 7.1%. In real terms (after taking into account price increases), growth for 1998 was 7.7% compared to 4.4% for 1997. Telecommunications equipment is the leading industry with 23% of all intramural R&D expenditures in 1999, followed by Aircraft and parts (10%), Engineering and scientific services (9%) and Wholesale trade (7%). The principal source of funding in 1997 (the most recent year for which these data are available) came from performing business enterprises themselves, which financed 68% of the total R&D expenditures.
Telecommunications equipment is the leading industry with 23% of all intramural R&D expenditures in 1999, followed by Aircraft and parts (10%), Engineering and scientific services (9%) and Wholesale trade (7%).
The principal source of funding in 1997 (the most recent year for which these data are available) came from performing business enterprises themselves, which financed 68% of the total R&D expenditures. Since 1986, this proportion has remained basically unchanged. Funding of the industrial R&D from foreign sources was equivalent to 20% of the total industrial R&D while the federal government's contribution was 5% and other Canadian sources accounted for 7%.
Table : Sources of funds for intramural R&D, by major industry group, 1997
(all figures in $million)
| Major industry group | Canadian performing company | Federal government | Other Canadian sources | Foreign sources | Total |
|---|---|---|---|---|---|
| Agriculture, fishing and logging | 29 | 8 | 12 | 10 | 60 |
| Mining and oil wells | 167 | 2 | 20 | 6 | 193 |
| Manufacturing | 3614 | 294 | 221 | 1451 | 5580 |
| Construction | 17 | - | - | 2 | 20 |
| Utilities | 156 | 10 | 12 | 8 | 186 |
| Services | 1790 | 70 | 359 | 262 | 2480 |
| Total (all industries) | 5772 | 383 | 625 | 1739 | 8519 |
Source: Service Bulletin Science Statistics V.23, No.9, Statistics Canada
Federal government financing was concentrated in the Aircraft and parts industry, which received $207 million, Other electronic equipment (excluding Telecommunication equipment and Electronic parts and components), which received $42 million and Engineering and scientific services, which received $32 million of federal funding. Foreign funding was particularly significant in the Telecommunication equipment industry, where it amounted to $886 million, and for the Business machines industry ($181 million). Other Canadian sources of funds included $288 million made available by Canadian corporations to their R&D affiliates, $196 million paid by Canadian corporations for R&D undertaken by unaffiliated companies and research institutes, and $131 million funded by provincial governments.