Health R&D spending increasing at higher than average rate

Health R&D has steadily grown to account for a full 20% of all R&D with $3.3 billion conducted in 2000, according to the latest data from Statistics Canada. That's up from $1.225 billion in 1988 when health R&D accounted for 13.5% of the $9 billion in overall R&D performed in Canada that year.

On the expenditure side, the higher education sector (including teaching hospitals) is the largest single performer of health R&D, accounting for $1.735 billion of the 2000 total, followed by businesses ($1.284 billion), private non-profit organizations ($163 million), the federal government ($94 million) and provincial governments ($31 million). In the 13-year period covered by the report, businesses show the largest increase, jumping more than six fold from the $200 million spent in 1988.

The higher education sector nearly doubled in the same time period, moving from $895 million in 1988 to $1.735 billion in 2000. In 2000, higher education institutions funded $888 million from its own sources, and received $305 million from the federal government, $161 million from businesses, $236 million from private, non-profit groups, $123 million from provincial governments and $22 million from foreign sources.

StatsCan reports that total health R&D spending has enjoyed 8% annual growth over the past decade, bettering gross expenditures on R&D which experienced 5% annual growth. But the business sector for health R&D has shown an even more rapid growth, posting annual growth of 13%.

Business enterprises are the largest single funder of health R&D in 2000 with $1,083 billion, followed by the federal government ($446 million), foreign sources ($383 million) and private, non-profit organizations ($323 million).

The latest survey marks the first time StatsCan has expanded its definition of health R&D conducted by business beyond the pharmaceutical and medicines industries. Also include this time around are the wholesale (generic) drugs industry, health and social services industry and selected firms from other sectors.

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