Canadian universities are spending an increasing share of their general operating and special purpose funds to cover the costs of research says a new report from the Association of Universities and Colleges of Canada (AUCC). It argues that the failure of governments and other sponsors of research conducted at universities to keep pace with the increase in research spending at post-secondary institutions will become more severe as global competition for research heats up and the university research enterprise expands.

Between 1996-97 and 2006-07, the unfunded institutional costs associated with research rose from 35% from $1.1 billion to $1.7 billion, while sponsored research funding from all sources more than doubled from $2.4 to $5.2 billion over the same time period (see chart).

Over the same period, general operating and special purpose and trust funds grew from $940 million to $3.5 billion, adding $2.6 million to university gross revenues. But the AUCC estimates that universities would have to spend $3.4 billion to support the full suite of research programs at internationally competitive levels. This diverts funds away from other university priorities, namely student support and maintenance on existing infrastructure.

declining student support

Combined with low levels of operating funds from the provinces, Canada's spending per student has dropped precipitously from $25,000 in the 1980s to $21,000 today. In contrast, US per student support has risen from $21,000 to $29,000.

The findings are part of the AUCC's third edition of its Trends report. It compares Canada's funding for teaching and research with higher education funding in the US, UK and Australia. Further analysis of the university research environment will be included in the association's next Momentum report, slated for publication this October.

"The increases in sponsored and unsponsored research on campuses drive up the faculty time and institutional cost components related to research, thereby supporting the growing amount of unfunded research costs that have created pressure on the general operating and special purpose trust funds," states the report. "The demands on universities to engage in R&D and to increase enrollments … are not likely to abate over the decade to come.

The AUCC reports that, unlike other countries, external sponsors of research rarely cover the costs of the time faculty spend on research projects. Add to the new institutional costs universities face (tech transfer offices, knowledge mobilization networks) and the gap between real costs and government support continue to widen.

The situation is exacerbated by the introduction of new research programs such as the Centre of Excellence in Commercialization and Research and the Global Research Excellence Chairs.

At the same time the Indirect Costs program funds remains stuck at 26% of eligible federal research awards, despite repeated calls from many quarters (including the AUCC) to increase it 40% and more internationally competitive levels.

It should be noted that funding from the Canada Foundation for Innovation (CFI) is treated as capital funding rather than sponsored research funding. The report says that while lack of historical data makes it difficult to benchmark the impact of the CFI or the Canada Research Chairs program, both have undoubtedly had a major positive impact on the size and quality of the university research enterprise and the ability to attract top-flight talent.

The report can be found at www.aucc.ca.

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