Research and development (R&D) plays a central role in the economic development of countries and is a key element of corporate strategies because innovation provides countries and firms with a competitive advantage. Given R&D’s importance to both firms and countries, this report seeks to understand the state of R&D investment between Canada and the Asia Pacific.
To gain a better understanding of Canada–Asia Pacific investment in R&D activities, this report analyzes cross-border flows in FDI focused on R&D. It relies on a subset of data from the Asia Pacific Foundation of Canada’s (APF Canada) Investment Monitor legacy database of two-way investment flows between Canada and the Asia Pacific tracking FDI in R&D.
Based on this data, the report analyzes key investments in R&D and identifies investment trends. The report provides an in-depth analysis of R&D investments over the past two years and compares recent developments with historical trends at national and sub-national levels. The report also includes sectoral analysis to help us better understand the sectoral composition of R&D investment and identify changes in investors’ sectoral preferences over time. In doing so, it provides:
- Detailed analysis of R&D investments between Canada and the Asia Pacific at the national and sub-national levels, from 2003 to 2021;
- Sectoral analysis of R&D deals to identify the sectors that benefited the most from FDI in R&D between Canada and the Asia Pacific;
- National and sub-national policies designed to promote FDI in R&D; and
- The preferred establishment mode for investments made in R&D.