University research income up 6% but era of double-digit growth appears to be over

Canadian universities are maintaining their strong track record of increasing research funding although the pace of growth is definitely slowing, according to the latest data from Research Infosource. Sponsored research income at the Top 50 research universities increased by 6% in FY08 to $6.1 billion, with seven of the top 10 posting gains. The overall gain is modest in comparison to the average annual increase of 19.2% over the past 10 years when research funding for the Top 50 grew by 172.4%. The last year of double digit growth was FY04.

The Univ of Toronto easily maintains its position atop the list with $844.9 million, although that represents a slight decline of $1.2% from FY07 and a minor decrease in research intensity (research income divided by full-time faculty) from $359.3 to $352.0. The top five research performing universities collectively secured $2.7 billion in sponsored research funding, accounting for 44.2% of the Top 50 total.

Overall, 34 institutions posted gains in FY08 while 16 experienced lower funding, compared to 30 and 20 in FY07. Seventeen universities registered more than $100 million in research income, up from 16 in FY07 with the Univ of Saskatchewan boosting its funding by 35.2% to $203.5 million.

Not all funding sources managed to remain in positive territory, however, with foreign sources declining by 22.8%. Endowments dropped by 58.7% while other investments slumped 22.6%. Endowments in particular fell victim to the brutal economic meltdown as their holdings were hammed by collapsing returns on investment.

On the plus side, funding increased for the three granting councils and the Canada Foundation for Innovation (7.0%), the corporate sector (10.3%), non-corporate entities (10.5%) and not-for profit organizations and endowments (13.4%).

The new data demonstrate that, while the university system can accommodate modest future increases, the era of constant double-digit increases is probably over.

"We have an excellent university research system which in many respects is the envy of the world," says Ron Freedman, Research Infosource CEO and co-publisher of RE$EARCH MONEY. "Most of the big increases of the past was catch-up. Now we're into steady-state funding ... We have a level playing field in terms of research excellence."

Of the 10 provinces, eight increased their research funding while two (Newfoundland and New Brunswick) experienced modest declines. The greatest rate of growth was registered by universities in Saskatchewan (30.2%) and British Columbia (17.9%). Quebec enjoyed another year of solid growth (8.9%), in contrast to FY05 when funding declined 12.6%. Ontario and Quebec maintained their dominance with 31 institutions accounting for 65% of all research funding. Alberta and British Columbia follow with 12% and 11% respectively.

Universities with medical schools dominate the Top 50 and the 16 institutions in that category secured 81% of total research income. The top comprehensive universities accounted for 14% of the total and were led by the Univ of Guelph. Laurentian Univ was the top undergraduate university in a category that accounted for the remaining 5% of total research income.

FMI: www.researchinfosource.com.

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