Nortel Still Canada’s R&D Champion

By Mark Evans | Published: October 23, 2008

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

In 2007, Nortel spend $1.85-billion (down 15.8% from 2006) on R&D, 50% more than second-ranked, BCE Inc. 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.”

R&D, Canada

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  • anonymous

    The question is how much of that is really spend in Canada ? Nortel might be spending this money but the R&D is mostly done outside the country.

  • exnt

    The majority of Nortel's R&D is now done outside Canada, so it's not really a fair comparison to BCE, Magna, or RIM. Also, who do you think is getting more out of their R&D? RIM or Nortel?

  • frankburch

    R&D at NT is going to 500 million….they're going to disembowel the organization and completely outsorce all R&D. The fun in the labs is over.

  • Tongue.In.Cheek

    Completely outsource all R&D? That's interesting speculation. What makes you think they will do that when they have been very clear that Enterprise is a key part of their business?

  • frankburch

    they will use outsorced R&D and buy innovation. What they have been doing is not working……obviously. They can get all the enterprise stuff hey need in the market…thats what csco does

  • WhyAmIStillHere

    I'm one of the few left in Enterprise R&D in Canada. We are already outsourced 3-1, why not go 100%. There is no loyalty, no commitment to quality, the only commitment of this leadership is to the dirty green. Logic left the building a long time ago.

  • Big Dog

    Spending 3 times the market cap on R&D for a mature company like Nortel seems a lil odd…I heard that 13000 employees out of 30000 are in R&D that also seems a little high..

  • yes4aapl

    What they have been doing is not working……obviously.
    Frank Burch
    ====
    re
    that's OK you are more realist now.
    Do you remember you laughed at me when I calculated 4000 new job cuts coming in 2008?

  • protosphere

    SGA is up there too.

    Heck the CEO makes more than BCE's too.

    Everything they do is big, biggest collapse,. biggest fraud settlement, the biggest pension deficit, biggest R&D, biggest pay practices, biggest this – biggest that… Like I keep saying, the bigger they are the faster they can fall. Can't dilute much now at around a dime a share presplit huh…

    Imagine customers going on strike all at once with their costs. How sudden do you think a surprise announcement would take after their traditional period of silence should this happen or be happening judging by CEO's primal scream to employees. I don't believe customer support as CEO told his employees any more than his $20 buying opportunities or it would be reflected in orders or numbers. Too many contradictions, maybe the biggest here too.Maybe largest mass orchestrated accounting fiasco, who knows, maybe fraud trials will disclose… new jet too…they go big alright.

    As for their R&D hobby farm, so much for Neptune, Titan, Dolphin, Wimax, soon to derisk LTE as they try to monetize MENs, etc., …and do they lead anywhere for all those R&D efforts and energies?

    I also believe they reinvent the wheel for every new installation adding to their keystone costs and woes.

    Now…how much will they spend next year? …heh <smirk>

  • puddintane

    Just like then-valuable labs space was cleared to rent to customers by throwing anything not generating enough $ in the trash 10 years ago, ordinary cubicles are now deemed too costly per sq. ft. in North America.

    Ship it all overseas where it all will eventually all become worthless, save for that handy software that takes up nothing more than disk space.

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