Nortel Is Still Canada's R&D Champion

Despite Nortel’s (NT) struggles, it’s still Canada’s biggest R&D spender, according to a report by Research Infosource Inc.

In 2007, Nortel spent $1.85-billion (down 15.8% from 2006) on R&D, 50% more than second-ranked, BCE Inc. (BCE). Nortel and BCE were the only companies that spent more than $1-billion on R&D last year.

Overall, R&D spending by Canada’s 100 largest R&D-focused companies fell to $10.3-billion from $10.6-billion.

“R&D spending in Canada is heavily influenced by Nortel Networks and BCE and both posted sharp declines in 2007,” says Ron Freedman, CEO of Research Infosource. “Removing these firms from the equation, R&D spending grew by 3.3%. However, if we correct for inflation, spending remained flat over the period.”

(click on chart to enlarge)

Comments

[thewatcher:]

Surely this article is just a factoid and not some sort of justification for buying more of this company's stock. NT is dead.

Were I a Canadian I would wonder why a company that's stock target price has been set at $0 and has a bankruptcy bulls eye on it's forehead has my country's largest R&D spend.

Right after I was done wondering about that I would start to feel depressed.

2008 Nov 14 11:30 AM