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From: brewster@watdcsu.UUCP
Newsgroups: can.politics
Subject: Re: Status of R&D in Canada
Message-ID: <3124@watdcsu.UUCP>
Date: Fri, 13-Mar-87 12:08:08 EST
Article-I.D.: watdcsu.3124
Posted: Fri Mar 13 12:08:08 1987
Date-Received: Sat, 14-Mar-87 01:49:03 EST
References: <3655@utai.UUCP>
Distribution: can
Organization: U of Waterloo, Ontario
Lines: 26

>From: eem@utai.UUCP (Evangelos Milios)

>It is widely accepted that Canada spends proportionally significantly less
>on R&D than the U.S. Assuming that this is true (R&D expenditures are
>tricky to estimate correctly) I have seen a variety of explanations:

>1. Brain drain to the U.S.
>2. Foreign-owned companies choose to perform R&D not in their Canadian 
>subsidiaries but in the US.
>3. Canadian companies are a lot smaller that their US counterparts
>and therefore have limited R&D budgets.

>My own opinion is that all of the above are relevant explanations to 
>some extent and I was wondering what other people think. 

	I think item 3 is relevant but is also often used as an excuse by
	management who prefer to maximize profits in the short run as
	opposed to planning for the long run.

	Item 1 obviously occurs, but I think that the true cause of low
	R&D in Canada is item 2; item 1 follows as a result of item 2.

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