With respect to the SR and ED credit reductions that have been proposed by the government and included in the budget implementation bill, the Xerox Research Centre of Canada and its operations have drawn on the SR and ED credit for the duration of our operations which amounts to roughly a 20% material impact as a percentage of our research operations. As I mentioned, we don't conduct satellite research. We conduct value-added materials research here. Our exposure is roughly $4.5 million per year associated with the SR and ED program. Going forward, the 5% reduction has a financial impact that would amount to roughly the equivalent of one researcher per year. As I mentioned, with our patent rate, each one of our researchers is highly productive.
Having said that, to your point, the greater impact is on our ability to make the business case for additional investment in Canada. Our capital investment and research investment in resources can be applied in any number of locations around the world that have a much lower, if you will, cost of business associated with research operations. We have principal research operations in the United States, two research centres, one in California and one in New York. We have one in Grenoble, France, a small operation in Bangalore, India, and a small joint surface chemistry practice in Japan. The capital can move very quickly. What we have done effectively, by reducing the SR and ED credit, is penalized our current investments, which as I mentioned, are throwing off a great deal of productivity, not just for our company, but also for the country.
We've established a globally revered centre of excellence around surface chemistry and gels, etc. It's a source of constant training and a learning opportunity for Canadian high-promise graduate students across the country. Again, that makes the hurdle that much higher to justify internally. Quite frankly, that's what I'm most concerned about. We're not necessarily content with the status quo. Our brief is about growing the investment here in Canada and extending the platform that we've already created.