28 R&DMagazine WINTER 2017 www.rdmag.com
The 57 countries reviewed in this section of the R&D Global Funding Forecast represent roughly half of the 116 countries that we analyze for their R&D forecasts
and trends. Most of these Rest of World (ROW) countries
are emerging nations that represent entire continents (Africa
and South America). Only five of these countries have
R&D/GDP ratios greater than 1%: Canada, Brazil, Russia,
Israel and Qatar. And 43 will spend less than $2 billion in
2017 on R&D. Combined, however, they’re expected to
increase their R&D spending by 2.1% in 2017 and represent
more than a tenth of the global R&D.
CANADA is expected to increase its R&D spending
in 2017 to $30.3 billion or 1.5% of the 2017 global R&D total and 5.3% of the North American total R&D investments.
This represents a 2% increase
over what Canada spent on
R&D in 2016. Approximately
46% of Canada’s R&D funds
come from its industrial base,
while 34% come from the
Canadian government and 9%
come from outside of Canada.
Industry performs about half of the Canadian R&D, with
10% being performed by government labs/researchers and
39% performed by Canada’s academia.
On the industrial side, Canada is strongly involved in
energy R&D areas, especially the oil sands in Alberta. Can-
ada’s Magna International is a large automotive component
supplier with 312 manufacturing operations and 98 product
development, engineering and sales centers in 29 countries.
Magna has more than 150,000 employees and spends $1
billion on R&D. Magna is involved in the development of
components and operating systems for future autonomous
cars as well. Canada is also home to Blackberry, the former
cell phone maker that is transitioning itself into a software
and Internet of Things system provider. Commercial air-
craft maker Bombardier is the top R&D spending company
in Canada, investing more than $2.3 billion in the develop-
ment of large commuter jets for commercial airlines.
MEXICO is the other large North American R&D
investor with $11.6 billion expected to be spent in 2017, a
2.3% increase over what it spent in 2016.
BRAZIL expects to invest $37.2 billion in R&D in
2017 or 1.8% of the 2017 global R&D total and 74% of the
South American total. Brazil’s R&D as a percent of GDP
is 1.2% which has remained fairly stable for the past six
years. The funding of Brazil’s R&D is split equally between
industry and government.
Brazil’s technological in-
frastructure is comparatively
weak with shortages of techni-
cal personnel in industry and
academia limiting their overall
capabilities. There are cur-
rently only 1.48 researchers
per 1,000 total employment
(per the OECD) and only about 10% of Brazil’s university
graduates have degrees in science or engineering.
These weaknesses have led to the creation of external
collaborations to build the country’s overall infrastructure.
Japan’s Sumitomo Chemical, for example, has opened an
R&D center, the Latin America Research Centre (LARC)
for R&D and analysis of Sumitomo’s Agrosolution prod-
ucts, including crop protection. LARC contains experimen-
tal fields, lab buildings and green houses. LARC enables
Sumitomo to conduct field crop trials for other Latin
American countries and support its other chemical busi-
nesses. The Brazilian crop protection market is the largest in
the world, even surpassing that of the U.S.
Brazil is also sponsoring the development of R&D
projects relating to energy storage integration. About
90 companies are involved in financing and implementing the projects which are aimed at providing
solutions for intermittent and unpredictable renewable
energy systems in remote sections of the country. In
another collaboration, Nigeria’s Petroleum Technology Development Fund (PTDF) is funding full scholarships for Nigerian students to attend the University
of Sao Paulo, one of Brazil’s leading institutions. Still
another collaboration involves the creation of an R&D
center in Porto Digital or Brazil’s “silicon valley” by
Fiat Chrysler that will be focused on automotive engine and transmission control software—the first such
facility in Latin America.
There has been a drive to broaden
South Africa’s WFC focus, especially
into the life science arena.
Rest of the World R&D
What percent of your 2016 R&D
was spent outside the U.S.?
12% 75% to 100%
51% to 75%
26% to 50%
11% to 25%
0% to 10%