R&D advantage

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Canada’s large cities present a winning environment, including world-leading R&D infrastructure, innovation incentives, and scientific talent for innovation-driven international businesses. 

Canada offers one of the most generous R&D tax incentives in the industrialized world. Combined federal and provincial credits can return to foreign investors, on average, up to 30% of their R&D investment made in the country. R&D-intensive sectors in Canada also enjoy the lowest costs in the G7, with a cost that is 10.7% lower than in the United States. 

When measured as a share of GDP, Canada also has the G7’s highest expenditures on R&D conducted in institutions of higher education. According to the Swiss-based International Institute for Management Development, Canada has the highest number of qualified engineers in the G7. These tens of thousands of scientists and engineers – along with their peers in Canada’s hundreds of research institutions and world-class universities – do cutting-edge research across the country in sectors including:

  • Advanced manufacturing (automotive, aerospace and defence)
  • Machinery and equipment (metalworking, mining oil and gas, agricultural)
  • Agri-food production and processing (grain and oilseed, meat, nutraceuticals)
  • Chemicals and plastics (petrochemicals, synthetic resins, agricultural chemicals)
  • Clean technologies (renewable energy, environmental)
  • Information and Communications technology (digital media, software, wireless communications)
  • Life sciences (biopharmaceuticals, medical devices)
  • Oceans technology (climate change, biodiversity, renewable energy)
  • Business services (engineering, IT outsourcing, banking and asset management)