In 2023, the R&D productivity contribution to capital growth in Canada stood slightly higher, with estimated future values indicating a gradual decline. Forecasted values from 2024 to 2028 show a consistent decrease, from 0.036 to 0.027. This downward trend suggests decreasing returns on R&D investments or shifting focus in other innovation arenas. This contraction reflects a diminishing year-over-year percentage change, impacting long-term growth prospects. The compound annual growth rate (CAGR) over the five-year horizon suggests a negative trend.
Future trends to watch include shifting R&D policies, emerging technologies, and global economic factors potentially altering investment patterns and productivity returns. Stakeholders should focus on innovation ecosystems to reverse or stabilize this declining trajectory.
