Federal S&T spending projected to decline following two-year stimulus funding bump

Most departments and agencies register declines

Federal spending on S&T fueled by stimulus funding reached an all-time high of $11.87 billion in FY10-11 but is projected to drop back by 5.0% to $11.29 billion — the lowest level in four years — according to the latest data from Statistics Canada. Of the 16 departments and agencies listed, eight received less funding in FY11-12 than the year before, compared to four that registered gains (Canadian Space Agency), Health Canada, Canada Foundation for Innovation and National Defence).

The biggest stimulus funding boost was experienced in FY 09-10 when spending jumped by more than $1 billion or 9.74% to $11.57 billion to offset the impact of the economic downturn.

The single largest beneficiary of the 2009-2010 injection of funds was the National Research Council (NRC) and its Industrial Research Assistance Program (IRAP). Together they jumped $246 million or 31.5% between FY08-09 ($781 million) and FY09-10 ($1,027 million). It has since experienced a steep funding decline back to more traditional levels, receiving a projected $709 million in FY11-12.

Of the $11.3 billion in S&T expenditures, intramural spending was the largest single component ($5.8 billion), followed by higher education ($3.3 billion), business enterprises ($1.2 billion), Canadian non-profit institutions ($499 million), foreign performers ($349 million) and provincial and municipal governments ($149 million).

R&D accounted for 63.2% of federal S&T outlays in FY11-12 at $7.1 billion, a decline of 6% over the previous year. The top five recipients of funding ware the Canadian Institutes of Health Research ($976 million), Natural Sciences and Engineering Research Council ($923 million), NRC ($655 million), Canada Foundation for Innovation ($558 million) and Atomic Energy of Canada Ltd ($491 million).

StatsCan allocated $549 million to the Social Sciences and Humanities Research Council, but that amount includes $322 million for indirect costs of university research, which is administered by SSHRC on behalf of all the granting councils.

Related scientific activities (RSA) accounted for $4.15 billion or 36.8% of spending in FY11-12 with $2.3 billion devoted to data collection, $677 million for information services and $674 million for special services and studies.

The natural sciences dominate S&T spending, accounting for $8.3 billion or 73.5% of the FY11-12 total. The single largest amount is for intramural spending ($3.9 billion), followed by higher education ($2.6 billion) and business enterprises ($1.2 billion).

Social sciences account for $3 billion in spending with the largest amounts going to intramural ($1.8 billion) and higher education ($738 million).

The largest amounts of federal S&T funding directed towards businesses were directed through Industry Canada ($316 million), Natural Resources Canada ($243 million) and the Canadian Space Agency ($242 million).

The National Capital Region — home to the majority of federal laboratories — accounted for $3.2 billion in S&T spending in FY09-10 (the last year for which a breakdown is available). Ontario accounted for $2.6 billion while Gatineau QC accounted for $656 million, the latter a substantial jump of 26.1% from FY08-09.

Total S&T personnel stood at 39,052 in FY11-12, up marginally from the year before. Scientific and professional staff accounted for 18,028, and there were 9,373 technical staff.

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