Developing indicators of the internationalization of R&D: the case of Canada

This paper analyses foreign sources of funding for Canadian R&D performers and shows that 20% of the funding for Canadian R&D in the business sector comes from foreign sources which, when compared to other countries, is among the highest percentages. Nevertheless, very few firms receive foreign R&D funding and even less on a regular basis. Firms tend to have transactions with foreign affiliated firms or foreign non-affiliated firms but rarely engage in both types of transaction. The rise in foreign funding of R&D in domestic firms suggests that there may be recognition of the favourable tax environment for Canadian firms. Copyright , Beech Tree Publishing.