The Aerospace Industries Association of Canada (AIAC) released performance results for Canada’s aerospace industry in 2011. Canadian aerospace industry revenue reached $22.4 billion in 2011, which was a 6.7% increase from 2010. Expenditures on aerospace R&D increased to $2 billion in 2011, which was an increase of $500 million from 2010, while capital investment reached $600 million.
It was found that 75% of R&D investment originated from internal company sources, and the SR&ED tax credit and Strategic Aerospace and Defence Initiative (SADI) were cited as the main instruments that drove aerospace R&D investments. Although over 60% of respondents to the survey agreed that there is future room for industry growth, AIAC’s members are worried that the changes to the SR&ED tax credit proposed in the federal budget may have a significant negative impact on future R&D investment decisions.
