Increases to higher education R&D funding continue remarkable run at modest pace

Guest Contributor
September 19, 2007

R&D spending on higher education increased an estimated 5.1% in FY05-06 to $9.5 billion, continuing a remarkable run which has seen total outlays increase by 170.4% over the past 14 years. Although the latest available FY increase is modest in comparison to recent years (11.2% in FY04-05 and 9.2% in FY03-04), all funding sources were up year-over-year, underscoring the transformation of university-based R&D funding over the past decade.

The data are contained in the latest higher education report from Statistics Canada, which provides a 14-year window on higher education funding. They show that, of all funding sources contributing to higher education R&D, the greatest increase was registered by foreign sources, which were up 479.1% between FY92-93 and FY05-06. The rates of increase in descending order are: private non-profit organizations (278.4%), provincial governments (230.1%) the federal government (199.9%), business (166.2%) and the higher education institutions themselves (133.5%).

Universities remain the single largest source of higher education funding ($4.4 billion) although it should be noted that the vast majority of their funding comes from federal sources.

Of all the provinces, Alberta funds the greatest share of higher education R&D spent in that province. In FY05-06, the province accounted for $182.7 million of the $962.2-million total or a 19% share. In comparison, the BC government's share was just 9%, while Ontario and Quebec governments contributions were just over 10%.

Higher education spending from all sources increased the most in Newfoundland, with a year-over-year increase of 28.4%. (Curiously, StatsCan data show that business contributed nothing to Newfoundland's higher ed R&D in FY05-06). New Brunswick had the second largest spending increase at 13.7%. Other rates of increase are: Manitoba (13.1%), PEI (12.8%) Nova Scotia (11.8%), BC (8.7%), Alberta (7.1%), Ontario (3.8%) and Quebec (3.6%). Saskatchewan's funding dropped 11.2%.

R$

Higher Education R&D
Expenditures by Province

FY05-06
($ millions)
Ontario3,980.1   
Quebec2,556.2   
Alberta962.2   
British Columbia904.0   
Nova Scotia297.5   
Manitoba294.6   
Saskatchewan217.2   
New Brunswick130.0   
Newfoundland148.4   
Prince Edward Island27.3   

Higher Education R&D Expenditures by Source of funds

FY05-06
($ millions)
YearFederal  
Gov't  
Provincial 
Gov't 
Business 
Enterprise 
Higher 
Education 
Private 
Non-Profit 
Foreign Total    
1992-93848.7   294.2   293.1   1,867.2   196.2   20.1   3,519.5   
1993-93872.7   312.4   313.9   1,892.1   248.3   20.3   3,659.7   
1994-95869.8   314.7   296.1   1,913.8   259.2   21.3   3,674.9   
1995-96854.8   323.2   296.7   1,926.6   265.7   24.2   3,691.2   
1996-97809.0   297.6   335.6   1,905.5   312.7   36.4   3,696.8   
1997-98792.7   369.9   381.0   1,971.5   324.5   39.5   3,879.1   
1998-99862.9   371.6   411.0   2,339.4   335.1   49.5   4,369.5   
1999-001,084.6   482.2   460.3   2,648.8   349.2   56.6   5,081.7   
2000-011,292.8   587.2   553.4   2,892.1   418.2   49.6   5,793.3   
2001-021,586.8   712.0   603.3   2,928.9   509.1   84.1   6,424.2   
2002-031,816.7   828.6   643.2   3,461.8   604.5   100.5   7,455.3   
2003-042,181.7   1,018.1   679.1   3,589.3   599.4   75.8   8,143.3   
2004-052,336.9   1,039.0   754.7   4,146.7   684.9   95.7   9,057.9   
2005-062,545.0   973.4   780.2   4,359.9   742.5   116.4   9,517.4   
Source: Statistics Canada:88-001-XIE



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