Cisco makes major R&D commitment to Ontario

Cisco Systems Inc will spend $455 million over the next five years in Ontario and has entered into a memorandum of understanding with the province that could lead to further R&D and sales of Cisco technology and/or services to the government. The investment decision was made after the Ministry of Economic Development and Trade provided Cisco with a $25-million grant. In addition to creating 300 new jobs and preserving another 300, the investment will assist Cisco in pursuing R&D projects to further develop Internet routing, create technology for the mobile Internet and broadband Internet and develop new methods for sharing on-line video. Recent tax changes in the province have reduced taxes on new business investment by 50%, helping to position Ontario as the top destination in North America for foreign investment after California. The San Jose CA-based telecommunications giant has global revenues of US$43.2 billion and employs more than 70,000 employees worldwide including more than 900 in Ontario. It currently spends $65 million on R&D in the province....