New Statistics Canada data reveal that federal in-house R&D declined a staggering 17.8% between 2010 and 2012 before an anticipated levelling off in 2013 to $2.47 billion. Government funding of R&D sagged $533 million or 8.24% over the same period before the bleeding was staunched in 2013 at $6.0 billion. Lackluster federal support combined with a 2.8% drop in business R&D performance to $15.6 billion contributed to a 0.9% decline in gross expenditures on R&D (GERD) this year.

The StatsCan report notes that the dramatic decline in federal R&D support reflects the "conclusion of federal science and technology stimulus spending". The end to stimulus spending coincided with a 10.6% increase in GDP between 2008 and 2012, which combined to drive down the GERD-to-GDP ratio for 2012 to 1.69, the lowest level in 16 years.

StatsCan ranks Canada's GERD 20th in 2011 within a package of 35 nations, nestled between the United Kingdom and Ireland. The ranking was topped by Israel (4.38%) and Finland (3.78%). OECD nations averaged 2.37% while the so-called EU 27 averaged just above 2.0%.

Ontario was home to $14.6 billion or 47.6% of all R&D spending in 2011, followed by Quebec ($7.9 billion/25.7%), British Columbia ($3.0/9.7%) and Alberta ($2.8 billion/9.2%)

Higher education R&D performance has essentially flatlined over the past three years, managing a 1% increase in 2013 to $11.9 billion. Natural science and engineering accounted for $9.48 billion or 79.8% while the social sciences and humanities accounted for $2.4 billion or $21.2%.

Continuing weakness in business R&D resulted in a 2.8% decline to $15.6 billion in 2012 after it appeared its outlays were stabilizing in 2011 (R$, December 17/12). That's still well off the high-water mark of $16.8 billion in 2007 prior to the "great recession" and a clear indication that current federal and provincial programs and policies designed to strengthen industrial R&D across a wider grouping of firms are accurately targeted.

Business R&D is the largest performing sector in Quebec (59.2%), British Columbia (53.2%), Ontario (52.8%) and Alberta (47.5%). Higher education is the single largest sector in all other provinces.

Provincial funding of R&D has also flatlined in the past three years, managing a 0.8% increase in 2013 to $1.79 billion. It's a similar situation for foreign R&D funding, which inched up 0.4% in 2013 to $1.79 billion. Private, not-for-profit organizations did slightly better, up 1.3% to $1.14 billion.

sectoral ratios

Business R&D accounted for 51.3% of overall spending, compared to 57.1% in 2003. In the same period, federal performance of R&D declined slightly from 8.4% to 8.1%, while higher education increased from 33% to 39%. Private non profits boosted their share of the total from 2.6% to 3.8%. Foreign sources as a share of the total plummeted from 8.7% to 5.9%.

Coinciding with stagnating GERD, the number of R&D personnel in 2011 (the last year for which data are available) remains virtually unchanged from the previous year at 228,970 full-time equivalents.

Surprisingly, the number of researchers reached their highest level in 2011 with 157,360 or 68.7%. Support staff fell 7.6% to 20,530 for a 9% share while technicians accounted for 51,070 or 22%.

The business sector employed the greatest number of R&D personnel (140,420/61.3%) , followed by higher education (67,570/29.5%) and government (19,740/8.6%)

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