Innovation through the development of new technologies is a way to increase the level of productivity and competitiveness of an economic sector. Other ways to innovate comprise the adoption of new technologies, including imported technologies.
In recent years, Canada has been investing about $1 billion per year on energy research and development (R&D). Three quarters of this amount are from the private sector. Public-sector investments declined markedly in the mid-1980s and early 1990s.
Private-sector R&D investments appear to be lower in the energy sector, in relative terms, than in other leading sectors of the Canadian economy. In part, this reflects the commodity nature of the energy R&D sector.
In defining science and technology (S&T) priorities, fossil fuels are the leading area of investment for the private sector. Nuclear energy leads public-sector investment.
The public sectors of Japan and the United States are investing higher amounts in energy S&T than the public sectors of other industrialized countries. Based on gross domestic product (GDP), Canada’s public sector investments are comparable with those of most other industrialized countries. Considering that Canada is a large energy producer and consumer, however, the importance of these investments is low.
Chapter 6: Energy Science and Technology - 6.1 Chapter Summary
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