Funding stagnant across the board

Canadian health R&D remains largely unchanged for fifth year running: StatsCan

Stagnant health R&D funding has stretched into its fifth year as turmoil in the pharmaceutical sector and unwillingness by governments to boost contribution levels continue to take their toll, according to the latest data from Statistics Canada. Spending is expected to come in at $6.2 billion in 2008, up just $53 million over 2007.

Expenditures have barely budged since 2004, compared to the period between 1998 and 2004 when they more than doubled, jumping from $2.9 billion in 1998 to $6.1 billion in 2004.

Funding weakness is apparent across all sectors with the 2008's paltry annual increase spread across federal, provincial, industry, higher education, private non-profit and foreign sources.

Year-over-year comparisons are difficult as previous annual data have been revised (generally downward). Last year's estimate of 2007 funding, for instance has been lowered $209 million or 3.3% from $6.3 billion to $6.1 billion.

The situation becomes clear when funding is examined in 2002 dollars, although no sectoral breakdown is provided. Between 2004 and 2007, health R&D expenditures fell a whopping $500 million in 2002 values, or 8.7%, from $5.7 billion to $5.2 billion.

share of total R&D slowly declining

Health R&D now stands at 21.2% of total R&D spending, down from 22.8% in 2004. Health R&D per capita has also dropped, from $191 in 2004 to $184 in 2008.

The years of double digit increases between 1999 and 2004 were largely fuelled by significant hikes in in funding to the higher education sector. While much of the increases emanated from the federal government, provinces also increased funding largely through matching programs like the Canada Foundation for Innovation and Genome Canada. The Canadian Institutes of Health Research also had its budget boosted during that time, but since 2006, increases have barely matched the inflation rate. For 2009 and beyond, the decrease could become even more pronounced as cuts related to strategic review take effect (R$, February 27/09).

The federal government remains the second largest funder of higher education health R&D following the higher education sector itself (which receives the majority of its funding from federal sources). In 2006 — the most recent year for which a breakdown is available — higher education expenditures of $3.8 billion received $1.7 billion from the institutions themselves, $939 million from the federal government, $486 million from private, non-profit groups, $342 million from business, $298 million from provincial governments, and $50 million from foreign sources.

Of the 2006 total, Ontario enjoys a huge advantage over other provinces, accounting for $1.7 billion or 48.% of the total. Quebec places a distant second with $990 million for 26.2% of the total. Alberta captured a 10% share with $375.8 million in expenditures, while British Columbia took 8.7% with spending of $328.6 million. The only other provinces with more than $100 million in expenditures are Nova Scotia ($126.8 million) and Manitoba ($103.7 million). The remaining provinces are Saskatchewan ($60 million), Newfoundland ($45.2 million), New Brunswick ($13 million) and Prince Edward Island ($4.8 million).

Health R&D per capita ranged from $137 in Ontario and $136 in Nova Scotia to just $17 in New Brunswick. The national higher education average is $116.

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