Fiscal year 2024 was a good one for Canada’s research funding ecosystem but the increases in funding are no guarantee that funding will be as robust next fiscal year or in successive ones, says Ron Freedman (photo at right), CEO of Toronto-based Research Infosource Inc.

Based on Infosource’s annual Canada’s Innovation Leaders 2025 report, “I think the research funding ecosystem is in pretty good health. It’s not “Olympic-level” health, but it’s pretty good,” he said in an interview with Research Money.

Research funding levels are holding steady and keeping pace with inflation, Research Infosource’s report shows.

In considering Canada’s research funding ecosystem, the actual funding is certainly an enabling factor and a “necessary condition,” Freedman said.

However, “It’s not the only condition. And it’s certainly not a sufficient condition,” he said.

It is positive if research funding is stable or increasing, he added. “But it’s no guarantee of anything, because there are other factors at play, as we will see next year and the year after.”

For example, the federal government’s cap on international graduate students – many of whom do the research at universities – will impact how much research is done going forward, Freedman said.

Also, the Mark Carney government’s plan to cut funding by 15 percent in most federal departments and agencies is likely to affect R&D spending in those departments and agencies.

“In terms of the mainline science-based departments and agencies, if you get into the really intensive R&D agencies like NRC (National Research Council) and NRCan (Natural Resources Canada), it’s inevitable that if their budgets shrink overall, then their R&D budgets are going to shrink. There’s no way around that,” Freedman said.

However, the impact depends on how individual departments and agencies manage their funding cut, he said.

Budget 2025 allocated $81.8 billion over five years to National Defence, so R&D spending in that department might increase in coming fiscal years.

Freedman said that wouldn’t surprise him, although he pointed out that Defence Research and Development Canada – the research arm of National Defence – has, from an international comparison, “a miniscule budget.”

Defence Research and Development Canada’s annual budget is about $330 million.

So even if there was a substantial increase in National Defence’s budget, it’s uncertain where that money will be spent, although a lot of it will likely be spent on procurement, Freedman said. “It’s a big question mark.”

Research funding increased across the board

Canada’s top 50 research universities, top 40 research hospitals and top 50 research colleges all  saw combined research income increases in Fiscal Year 2024, according to Research Infosource’s annual report.

Research colleges and Cégeps (in Quebec) had the largest increase in combined sponsored research income, driven by research funding increases from the three federal granting agencies.

The top 50 research colleges reported a total of $314.8 million of sponsored research income in the form of grants and contracts in Fiscal 2024, a substantial gain of 19.8 percent over Fiscal 2023.

Research income was in the form of research grants and contracts. Research income increased at 32 colleges and declined at 18 others.

The Fiscal 2024 results were driven by strong grown in both total government funding (up by 16.2 percent, $223.1 million) and total non-government funding (up 31.3 percent, $81.7 million).

Research funding from all three federal granting councils and the Canada Foundation for Innovation (CFI) contributed to the growth of government funding:

• CFI up 65.6 percent.
• Social Sciences and Humanities Research Council up 42.9 percent.
• Canadian Institutes of Health Research up by 14.9 percent.
• Natural Sciences and Engineering Research Council up 10.7 percent.

Cégep de Trois-Rivières was the national leader among colleges with $24.8 million of research income, up 47.6 percent, followed by Mohawk College ($18.4 million, up 14.3 percent) and in third place the Northern Alberta Institute of Technology ($14.2 million, down -18.9 percent).

The top three colleges that posted the greatest research income growth by tier size were: Fanshawe College (Large, up 100.8 percent), Bow Valley College (Medium, up 153.2 percent) and Holland College (Small, up 211 percent).

Top research universities reported combined research income of over $10 billion

Canada's Top 50 Research Universities reported combined research income of $10.06 billion in Fiscal 2024, an increase of 4.8 percent over Fiscal 2023. Research income expanded at 32 universities and declined at 18 others.

University of Toronto again led the national university ranking and the “Medical” tier with $1.59 billion of research income, up 10.8 percent.

University of Waterloo topped the “Comprehensive” universities ($198.5 million, down -11.5 percent, 15^th overall) and Université du Québec à Chicoutimi led the “Undergraduate” tier ($39.9 million, up 14.8 percent, 32^nd overall).

Top-placed universities by research income growth were: University of Saskatchewan (Medical tier, up 34.6 percent), University of Windsor (Comprehensive tier, up 37 percent) and Royal Military College of Canada (Undergraduate tier, up 24.6 percent).

Research Infosource designated three institutions as Research Universities of the Year 2025 in their respective categories: University of Toronto (Medical), University of Waterloo (Comprehensive), and Ontario Tech University (Undergraduate).

AI collaboration publication performance measured

Research Infosource also looked at university artificial collaboration publication performance from 2019 to 2023.

The University of Toronto led in cross-sector AI collaboration publications in the Medical tier, with 1,041 publications, followed by Université de Montréal (378) and McGill University (367).

The University of Waterloo led in the Comprehensive tier with 244 publications, followed by Simon Fraser University (85) and Concordia University (74).

Lakehead University led in the Undergraduate tier with 31 publications, with Ontario Tech University at No. 2 with 20 publications.

In international AI collaboration publications, the University of Toronto led the Medical tier with 1,299 publications, followed by the University of Alberta (1,103) and University of British Columbia (1,025).

The University of Waterloo led in the Comprehensive tier with 1,012 publications, followed by Concordia University (486) and Carleton University (438).

In international AI collaboration publications as a percentage of total AI publications, the University of Alberta led the Medical tier with 70.5 percent, followed by University of Saskatchewan (68.5 percent) and Dalhousie University (6.4 percent).

In the Comprehensive tier, Carleton University led with 72.9 percent, followed by University of Waterloo (71.7 percent) and University of Windsor (69.8 percent).

In the Undergraduate tier, University of Northern British Columbia led with 85.7 percent, followed by Wilfred Laurier University (79.5 percent) and Université de Moncton (77.4 percent).

Research spending rises at top research hospitals

Canada's Top 40 Research Hospitals reported combined research spending of $3.82 billion in Fiscal 2024, a sizeable gain of 10.4 percent over Fiscal 2023.

Research spending increased at 36 health organizations and declined at four others.

The three leaders on the Top 40 list were: University Health Network with outlays of $599.3 million, up 11.2 percent from Fiscal 2023; Hospital for Sick Children ranked in second spot ($311.2 million, up 1.3 percent); followed by McGill University Health Centre in third ($244.8 million, down -5.2 percent).

The three health organizations posting the greatest research spending growth by tier size were: Hamilton Health Sciences (Large, up 36.7 percent); CHU Sainte-Justine (Medium, up 19.1 percent); and Bruyère Health (Small, up 23.2 percent).

The top researcher-intensive organizations (research spending per researcher) were: London Health Sciences (Large, $856,900); St. Joseph’s Health Care London (Medium, $918,500); and Baycrest (Small, $1,076,000).

In the top hospital-intensive organizations (research spending as a percentage of total hospital spending), the Hospital for Sick Children led in the Large tier with 24.4 percent, followed by the University Health Network (18.4 percent), and McGill University Health Centre (14.2 percent).

In the Medium tier, the Centre for Addiction and Mental Health led with 17.8 percent, followed by Sinai Health (12.9 percent) and CHU Sainte0Justine (11.7 percent).

In the Small tier, Douglas Mental Health Institute led with 18.3 percent, followed by Montreal Heart Institute (15.7 percent) and Holland Bloorview Kids Rehabilitation Hospital (12 percent).

A total of 14 research hospitals made it into the “100 million club,” each with more than $100 million in research spending in Fiscal 2024.

R&D spending declines slightly at top corporate R&D spenders

Canada's Top 100 Corporate R&D Spenders posted $15.39 billion in combined research and development spending in Fiscal 2024. This was a decline of -1.5 percent over Fiscal 2023. R&D spending increased at 59 companies and declined at 40 others.

The leading corporate R&D spender was once again Shopify Inc., investing $1.87 billion in R&D, down -19.8 percent, followed by Open Text Corporation ($1.22 billion, up 33.3 percent) and Magna International Inc. dropping to third spot ($1.20 billion, up 2.9 percent).

The top three R&D spending growth leaders overall were: Satellos Bioscience Inc. (up 122.3 percent), Verses AI Inc. (up 107.5 percent) and NervGen Pharma Corp. (up 95.5 percent).

Top 15 federal government R&D performers saw spending increase

Canada's Top 15 Federal Government R&D Performers reported a total of $2.38 billion of intramural R&D spending in Fiscal 2024, a gain of 7.8 percent over Fiscal 2023.

The top three Federal Government R&D performers were: National Research Council, spending $806 million to R&D, up 4.5 percent, followed by Agriculture and Agri-Food Canada ($390 million, up 7.1 percent) and National Defence in third ($248 million, up 7.4 percent).

R&D spending increased fastest at Fisheries and Oceans Canada (up 221.4 percent), Public Health Agency of Canada (up 28.6 percent) and Health Canada (up 16.3 percent).

The theme of Canada's Innovation Leaders 2025, which draws from proprietary databases, is “Research for Canada's future and the future of Canadian research.” The report includes a special “Focus on Brain Health Research.”

In addition to showcasing Canada's leading research universities, hospitals, colleges, companies and federal government departments and agencies, this year’s report explores explore how Canada’s researchers and institutions are shaping a prosperous future and driving innovations to tackle complex global challenges.

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