Research and Development

Eastern Ontario’s R&D advantage

These days, innovative companies can do their R&D virtually any- where in the world – wherever they can find the right people in the right research environment at the right cost.

Exceptional research talent

Brainpower drives R&D and Ontario has become a magnet for top researchers from around the world. They’re drawn here by generous funding programs, excellent lab facilities and the opportunity to work on leading-edge projects in a friendly, collaborative environment.

Our workers are smart, skilled and well-educated. A higher percentage of our workforce has completed post-secondary education than in any G7 country.

R&D cost competitiveness

KPMG’s Competitive Alternatives 2008, comprehensive survey of international business costs, showed that Canada offers the lowest costs among the G7 for R&D and product testing.

That same study also reports that Canada’s overall business costs were the lowest in the G7 for R&D intensive sectors such as biotech, aerospace, agri-food, chemicals, medical devices, pharmaceuticals, precision manufacturing, telecommunications, software design, and web and multimedia development.

Government support for innovation

The Ontario government understands the economic benefits of successful business innovation. That’s why we’re investing almost $3 billion over eight years to support research and commercialization

at our universities, colleges, hospitals and research institutes – much of it in partnership with the private sector.

Incentives for innovation

Canada’s R&D tax incentive program is widely recognized as one of the most generous in the world. And in Ontario, we top up that program with additional tax incentives such as the Ontario Business-Research Institute (OBRI) tax credit and the Ontario Innovation Tax Credit (OITC).

All this can add up to big savings.

Innovative companies can also take advantage of a wide range of made-in-Ontario business programs that support R&D investments such as the $1.15 billion Next Generation of Jobs Fund, Ontario’s $500 million Advanced Manufacturing Investment Strategy and many more.

And by 2013, Ontario’s combined federal-provin- cial corporate income tax rate will be 25%.

Ontario’s R&D cost advantage

Source: KPMG Competitive Alternatives 2008 (updated exchange rates, December 2008)