an innoVatiVe ECONOMy
gRoss domestic R&d expendituRes (As A PERCENTAgE OF gDP)
25 5 ,
15 5 ,
A LEADER AMONg INDUsTRIALIzED COUNTRIEs
In 2003, Québec allocated 2.74% of its GDP to R&D:
a level higher than the average of the OECD, the G7 and the European Union.
Québec’s objective is to invest 3% of its GDP in R&D
1983 1985 1987 1989 1991 Source: Institut de la statistique du Québec.
gRoss domestic R&d expendituRes 2003 (As A PERCENTAgE OF gDP)
R&D ExPENDITUREs: ACCELERATED gROwTh
Spending on R&D is growing faster in Québec than in the other provinces of Canada:
since 1983, R&D spending in Québec, expressed as a percentage of GDP, has grown by an average of 4.8% per year compared with 2.5% for Ontario and 1.9% for Canada as a whole;
since 1995, Québec has been the province that, as a proportion of its GDP, has posted the highest level of R&D spending in Canada.
Sources: OECD, Main Science and Technology Indicators, 2005-2, January 2005; Statistics Canada and Institut de la statistique du Québec.
inteRnational compaRison net afteR-tax cost of an R&d expendituRe1, 2
Québec Canada Japan
A TAx sysTEM ThAT ENCOURAgEs INNOvATION
R&D expenditures by businesses enjoy favourable tax treatment:
the most competitive in Canada for SMEs;
one of the most competitive for large enterprises.
United Kingdom United States Germany
0.87 0.90 0.93
0 6 % 0 . 6
0 7 % 0 . 7
0 8 % 0 . 8
0 9 % 0 . 9
1 0 % 1 . 0
Source: OECD Science, Technology and Industry Scorecard, 2005.
Case of a large company. Net after-tax cost of an expenditure of $1 in R&D corrected to reflect the level of corporate income tax. The lower the index, the more generous the tax incentives. Rates in effect in 2004 for countries. Rate in effect as at April 1, 2006 for Québec.
A LEADER IN vENTURE CAPITAL
Almost 47% of the venture capital available in Canada comes from funds managed in Québec. Venture capital under management in Québec amounts to $9.9 billion.
In 2005, Québec received 39% of venture capital investments. The $710 million invested represented an increase of 12% compared to 2004.
Information technology and life sciences accounted for two thirds of these new funds.
ECONOMIC AND FINANCIAL PROFILE OF QUÉBEC