In 2024, Canada's government research and development expenditure as a percentage of GDP is expected to decrease gradually from a 2023 baseline of 1.45%. Over the forecast period, the yearly decline from 2024's 1.43% to 2028's 1.35% marks a downward trend, with a year-on-year average change of approximately -1.4%. As a cumulative effect, the five-year compound annual growth rate (CAGR) signals a contraction in this sector.

Future trends to watch for include:

The impact of policy shifts or increased government focus on innovation and technology.
Global economic conditions influencing budget allocations.
Private sector R&D partnerships that might offset any governmental expenditure slow down.
Shifts in international competition and collaboration contributing to R&D intensity.