Facts & Figures

R&D activities are becoming more internationalized, but Canada is losing share

February 2, 2006

Source: UNCTAD World Investment Report 2005

Multinational enterprises (MNEs) world-wide are spending more on research and development (R&D), both at home and abroad. Their spending abroad, however, has been increasing at double the rate of spending in their home countries. In 2002, 16% of all MNEs' R&D expenditures, on average, were spent outside their home countries, compared to only 10% in 1993. For example, German MNEs established more foreign R&D units during the 1990s than in the preceding 50 years. But Canada lost share during this period: Canada's share of expenditures on R&D by foreign affiliates of MNEs declined by 1.4% overall.

Provided by the Trade and Economic Analysis Division (www.international.gc.ca/eet).