Case Study

Investing in R&D in Canada

Pratt & Whitney, the US-based technology company specialising in jet engine manufacturing, has been branching out its operations abroad, bringing with it significant investment and job creation benefits. As well as ventures in India and Singapore, Pratt & Whitney has recently made a substantial investment in Canada.

An arm of the United Technologies Corporation, Pratt & Whitney is known for innovation. Its recent jet engine, the Geared Turbofan, uses a novel gear system design and contains state-of-the-art composite materials.

At the end of 2014, Pratt & Whitney announced a major investment of $1 billion in research and development at its Longueuil (Quebec) and Mississauga (Ontario) facilities over four and a half years, which will be mainly directed towards work on the company’s next generation ‘PurePower’ engine family, to which the Geared Turbofan belongs.

The Canadian government saw the value in scaling up Pratt & Whitney’s R&D activities in the country and committed to supplement its investment with a $300 million repayable contribution. Not only will the deal result in 6,000 high-quality direct jobs, but it will also have consequential economic benefits for the areas surrounding the R&D sites.

Pratt & Whitney’s Canada branch also focuses on developing skills through its partnership with 20 Canadian universities, which funds over 200 research projects. 

This investment is a prime example of the global nature of the aviation industry, and shows why increased investment is a crucial aspect of the SDGs.