Chapter 4 Long Descriptions

Figure 4-1: Business Enterprise Expenditure on Research and Development as a Percentage of Gross Domestic Product, 2006, 2008 and 2011

This vertical bar graph compares business enterprise expenditure on research and development as a percentage of gross domestic product for 2006, 2008 and 2011 in 41 economies. More economies saw increases over the years than decreases. Israel had the highest business enterprise expenditure on research and development as a percentage of gross domestic product in 2011 at 3.51 percent, followed by Korea at 2.80 percent and Finland at 2.67 percent. Canada was 25th out of the 41 countries studied at 0.89 percent in 2011, down from 1.14 percent in 2006 and 1.04 percent in 2008. Argentina had the lowest business enterprise expenditure on research and development as a percentage of gross domestic product in 2011 at 0.14 percent. The top five threshold for 2011 was 2.34 percent.

Figure 4-2: Business Enterprise Expenditure on Research and Development and Business Enterprise Expenditure on Research and Development as a Percentage of Gross Domestic Product in Canada, 1994-2012

This line graph compares business enterprise expenditure on research and development and business enterprise expenditure on research and development as a percentage of gross domestic product in Canada between 1994 and 2012. Business enterprise expenditure on research and development was $7.6 billion in 1994, rising to $14.3 billion in 2001, peaking at $16.8 billion in 2007 and declining to $15.5 billion in 2012. Business enterprise expenditure on research and development as a percentage of gross domestic product was 0.98 percent in 1994, peaking at 1.29 percent in 2001 and declining to 0.89 percent in 2011.

Figure 4-3: Business Enterprise Expenditure on Research and Development by Industry, Based on the North American Industry Classification System, 2000, 2007 and 2012

This vertical bar graph compares business enterprise expenditure on research and development by industry based on the North American Industry Classification System by 11 industries for 2000, 2007 and 2012. The total business enterprise expenditure on research and development for 2000 was $12.4 billion. The total business enterprise expenditure on research and development increased in 2007 to $16.8 billion and then declined in 2012 to $15.5 billion. Information and communications technology manufacturing had the greatest business enterprise expenditure on research and development in 2012 at $2.4 billion, followed by scientific research and development services at $1.7 billion.

Figure 4-4: Business Research and Development as a Percentage of Value-Added in Industry, 2007

This vertical bar graph compares business research and development as a percentage of value-added in industry for Canada and the average of countries for seventeen industries in 2007. Office, accounting and computing machinery had the highest business research and development as a percentage of value-added in industry in Canada at 48.4 percent, compared with 19.1 percent for the average of countries. The top five threshold for office accounting and computing machinery was 32.6 percent. Chemicals, excluding pharmaceuticals, had the lowest business research and development as a percentage of value-added in industry in Canada at 1.7 percent, compared with 6.3 percent for the average of countries. The top five threshold for chemicals, excluding pharmaceuticals, was 8.7 percent.

Figure 4-5: Business Research and Development as a Percentage of Value-Added in Industry Adjusted for Industry Structure, 2008

This vertical bar graph compares business research and development as a percentage of value-added in industry adjusted for industry structure for 26 countries in 2008. Canada ranked 13th out of the 26 countries studied with business research and development as a percentage of value-added in industry adjusted for industry structure at 2.06 percent. Iceland was first at 3.53 percent, followed by Sweden at 3.46 percent and the Netherlands at 3.39 percent. For business research and development as a percentage of value-added unadjusted for industry structure, Sweden was highest at 4.24 percent, followed by Finland at 4.02 percent and Korea at 3.77 percent. The top five threshold-adjusted was 3.17 percent.

Figure 4-6: Machinery and Equipment Investment and Machinery and Equipment Investment as a Percentage of Gross Domestic Product in Canada, 1990-2011

This line graph compares machinery and equipment investment in billions of dollars and machinery and equipment investment as a percentage of gross domestic product in Canada between 1990 and 2011. Machinery and equipment investment was $45.5 billion in 1990, peaking in 2008 at $101.4 billion and dropping to $97.8 billion in 2011. Machinery and equipment investment as a percentage of gross domestic product in Canada was at 6.7 percent in 1990, increasing to 8.1 percent in 1998 and dropping to 5.7 percent in 2011.

Figure 4-7: Information and Communications Technology Investment Intensity (Information and Communications Technology as a Percentage of Non-Residential Gross Fixed Capital Formation) by Component, 2009

This vertical bar graph compares information and communications technology investment intensity (as a percentage of non-residential gross fixed capital formation) by three components for 2009. The United States had the highest total information and communications technology investment intensity at 31.5 percent, followed by Sweden at 24.8 percent and Denmark at 24.5 percent. For the computer component, Belgium had the highest investment intensity at 10.4 percent, followed by Denmark at 10.1 percent and the United Kingdom at 7.4 percent. For the communications component, New Zealand had the highest investment intensity at 7.3 percent, followed by Portugal at 7.0 percent and the United States at 6.0 percent. For the software component, the United States had the highest investment intensity at 19.0 percent, followed by Sweden at 17.9 percent and Denmark at 13.5 percent.

Figure 4-8: Canada-United States Capital Intensity (Capital Stock per Hour Worked) Comparisons, 2000-10 Average

This vertical bar graph compares Canada`s capital intensity (capital stock per hour worked), 2000 to 2010 average, as a percentage of the level in the United States for six industries in the goods sector and eleven industries in the services sector. In the goods sector, agriculture, forestry, fishing and hunting had the highest information and communications technology intensity at 129 percent, followed by utilities at 85.1 percent. For machinery and equipment intensity, oil and gas extraction was highest in the goods sector at 100.2 percent, followed by agriculture, forestry, fishing and hunting at 72.6 percent. In the services sector, arts, entertainment and recreation had the highest information and communications technology intensity at 107.9 percent, followed by accommodation and food services at 64.7 percent. For machinery and equipment intensity, finance, insurance and real estate, management of companies and enterprises, was highest at 77.9 percent, followed by transportation and warehousing at 72.9 percent.

Figure 4-9: Investment in Intangible Assets in Canada, 2000 and 2008

This vertical bar graph compares investment in six innovative property, four economic competency and computerized information intangible assets in Canada for 2000 and 2008. Of the innovative property assets, $12.4 billion was invested in scientific and engineering research and development in 2000, increasing to $16 billion in 2008. Of the economic competency assets, purchased organizational capital received the most investment in both 2000 and 2008 at $23.8 billion and $41 billion, respectively, followed by own-account organizational capital at $15.3 billion in 2000 and $25 billion in 2008. Computerized information received $9.4 and $16.7 billion in investment in 2000 and 2008 respectively.

Figure 4-10: Venture Capital as a Percentage of Gross Domestic Product, 2009

This vertical bar graph compares venture capital as a percentage of gross domestic product in 27 countries for 2009. Of the 27 countries, Israel had the highest combined other venture capital and seed, start-up and other early-stage capital as a percentage of gross domestic product at 0.18 percent, followed by the United States at 0.09 percent. Canada was 15th out of the 27 countries studied at 0.03 percent.

Figure 4-11: Trend in Total Venture Capital Investment, United States and Canada, 1996-2011

This line graph compares the trend in total venture capital investment in the United States and Canada from 1996 to 2011. In 1996, Canada had $1.0 billion in total venture capital investment, peaking in 2000 at $5.9 billion and decreasing to $1.5 billion in 2011. The United States followed the same pattern with US$10.6 billion in 1996, peaking in 2000 at US$100.4 billion and decreasing to US$28.7 billion in 2011.

Figure 4-12A: Venture Capital Funding Sources in Canada, 2011

This pie chart compares seven sources of venture capital funding in Canada in 2011. Foreign funds were highest at 29 percent, followed by Canadian private independent sources at 25 percent, labour-sponsored sources at 16 percent and government sources at 12 percent.

Figure 4-12B: Venture Capital Funding Sources in the United States, 2011

This pie chart compares four sources of venture capital funding in the United States in 2011. Private independent was highest at 81 percent, followed by others at 9 percent, and corporate and institutional at 5 percent each.

Figure 4-13: International Technology Flows (Average of Receipts and Payments) as a Percentage of Gross Domestic Product, 1999 and 2009

This vertical bar graph compares international technology flows (average of receipts and payments) as a percentage of gross domestic product for 31 countries in 1999 and 2009. Of the 31 countries, Ireland had the highest international technology flows as a percentage of gross domestic product in 2009 at 17.9 percent, followed by Finland at 3.7 percent and the Netherlands at 3.5 percent. Ireland had the highest international technology flows as a percentage of gross domestic product in 1999 as well at 10.8 percent, followed by the Netherlands at 3.0 percent and Luxembourg at 2.6 percent. Canada was 18th out of the 31 countries studied at 0.3 percent in 1999 and 0.9 percent in 2009. The top five threshold in 2009 was 3.2 percent.

Figure 4-14: Trade in Technology-Intensive Services, 1991-2011

This vertical bar graph compares trade in technology-intensive services—receipts of and payments for—as a percentage of total commercial services from 1991 to 2011. Four technology-intensive services are compared: architectural, engineering and other technical services; research and development; charges for the use of intellectual property; and computer and information services.

In 2011, the largest component of technology-intensive services receipts as a percentage of total commercial services receipts was in computer and information services at 13.8 percent, followed by architectural, engineering and other technical services at 10.5 percent. Research and development was at 8.7 percent and charges for the use of intellectual property were at 5.7 percent. Computer and information services saw the largest growth, which was at 4.9 percent in 1991.

In 2011, the largest component of technology-intensive services payments as a percentage of total commercial services payments was in charges for the use of intellectual property at 21.5 percent, followed by architectural, engineering and other technical services at 8.3 percent, computer and information services at 6.6 percent, and research and development at 2.7 percent.