Research and Development in Ontario
Eastern Ontario’s R&D advantage
These days, innovative companies can do their R&D virtually anywhere in the world – wherever they can find the right people in the right research environment at the right cost.
Exceptional research talent
Knowledge drives R&D and Ontario has become a magnet for top researchers from around the world. They are 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 intelligent, 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, a comprehensive survey of international business costs, showed that Canada offers the lowest costs for R&D and product testing among the G7 countries.
The 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 promotes the economic benefits of successful business innovation. It is investing almost $3 billion over eight years to support research and commercialization at Ontario universities, colleges, hospitals and research institutes. Much of this research and commercialization activity is 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. Ontario tops up that program with additional tax incentives such as the Ontario Business-Research Institute (OBRI) tax credit and the Ontario Innovation Tax Credit (OITC).
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.
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)