Why is R&D Important?

Advantage Canada: Building a Strong Economy for Canadians— a long-term plan published by the Government of Canada in November 2006— explains how the global economy has been altered over the past 20 years by the rise of new emerging economies, reduced trade barriers, and lower telecommunications and transportation costs. The production of goods and services is organized along global supply chains now, spread across countries according to their comparative advantage.

Research and development (R&D) allows Canada to participate in new markets and industries, and lets Canadian businesses offer their customers new or improved products, processes and services.

Return on investment

An active R&D community can attract additional highly skilled personnel into related fields of innovation. Individual Canadians win, too, because R&D brings economic development, employment opportunities, and cost savings and benefits conferred by the new products, processes and services created. It also elevates knowledge among Canadian employees, and encourages Canadian workers to remain here in Canada.

But R&D is not without its challenges. Find out more in What Makes R&D Difficult?