Companies expect to spend 15.5 billion Canadian dollars on R&D in Canada in 2015, 2.6 per cent less than they planned to spend in 2014 and 3.6 per cent less than actual spending in 2013, according to data from Statistics Canada.
Most of the spending—$14.2bn—will go towards wages, materials, on-site consultants and products to support R&D, with the remaining $1.3bn being spent on capital expenses such as machinery, land and buildings.
The largest proportion of the R&D spending is expected to be in the service industry, where companies intend to spend $7.3bn, nearly half of the total. This is still below the service industry’s peak of $7.6bn in 2011. The manufacturing industry will account for the next-largest chunk of funding, at $6.4bn—well below its 2001 peak of $9.2bn. R&D spending in manufacturing has been in steady decline since 2006.