Investment in research and technology is expected to increase significantly in 2014
New York, NY (PRWEB) October 28, 2014
The Scientific Research and Development industry includes companies conducting physical, engineering and life sciences research, but does not include private research and development conducted in-house at corporations. However, private enterprises represent the majority of industry clients and funding, which has been anaemic over the five-year period. Corporate budgets contracted dramatically in the wake of the recession and, despite a quick recovery in corporate profit, the private sector remained wary of increasing investment in research and technology for fear of another downturn. At the same time, government funding for research and development remained weak as public expenditure fell due to high spending to stimulate economic growth during the recession.
However, investment in research and technology is expected to increase significantly in 2014 as private enterprises allocate a greater proportion of budgets to product innovation. According to IBISWorld Industry Analyst Jeremy Edwards “The new federal government budget is expected to be a boon for the industry, while the higher-education sector benefits from greater endowments.” Consequently, industry revenue is expected to grow in 2014 and industry profit margins will improve.
“Over the next five years, growth is expected to accelerate as corporate profit and sentiment improves and government consumption and expenditure rises,” says Edwards. Private enterprises are expected to allocate more money towards product development while a number of government initiatives focusing on healthcare, green technologies and defence surge industry revenue forward. This will include money spent on the Sustainable Development Technology Canada program over eight years, promising long-term funding to scientific research in clean technology. As a result, industry revenue is projected to grow over the five years to 2019. Industry profit margins are also expected to rise and encourage new enterprise and employment opportunities.
For more information, visit IBISWorld’s Scientific Research & Development in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry conducts physical, engineering or life sciences research and development (R&D). This industry does not include operators like pharmaceutical or manufacturing companies that may undertake R&D to support operations; government entities are also excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.