Cisco announces major R&D expansion for Ontario

Cisco Systems Inc has struck a 10-year agreement with the Government of Ontario that will see the San Jose CA-based telecom networking giant invest up to $4 billion in R&D in Kanata and Toronto, creating up to 1,700 jobs by 2020 and as many as 3,500 jobs by 2024. The deal was struck after the province committed up to $220 million to support the agreement, which will make Canada one of Cisco's top five R&D centres globally. The deal — the biggest tech investment in the province's history — builds on a 2011 pact that saw Ontario contribute $25 million as part of a memorandum of understanding under which Cisco committed to invest $455 million over five years and create 300 jobs, largely at its Kanata facility (R$, September 13/11). Company officials say the 2011 deal was a pilot and its success led to extensive negotiations over the past 18 months and the decision to focus on Canada as a major R&D hub for the company. For Ontario, it's a key plank in its strategy to boost the province's status as a preferred destination for new tech investment and advanced manufacturing. Cisco spent $87.6 million in R&D in Canada in 2012, down from $98.7 million in 2011….