Status of forest sector research and development in Canada

A survey of research and development (R&D) spending in the Canadian forest-sector between 1987 and 1997 indicated current levels of only about 0.4% of the value of shipments. Federal support declined, as did aggregate spending by the companies appears to be in decline, whether measured by expenditures or the number of people. Spending is at the low end of the range characteristic of commodity businesses and far below the level needed to compete in differentiated, value added products. Innovative technology is one of the few controllable measures available to the industry to improve its position. Some suggestions are made how public policy could help to improve the situation.