Growth of federal S&T spending in national capital region slowing

The Ottawa region continues to be home to the largest single concentration of federal S&T expenditures but its rate of increase between FY96-97 and FY02-03 is lower than all other provincial jurisdictions except Nova Scotia. Federal expenditures in the national capital region (NCR) increased 32.6% during that seven-year period to $2.6 billion, compared to a 67.1% increase in British Columbia to $580 million, the province that experienced the highest rate of growth.

Total federal S&T expenditures for FY02-03 (the most recent year for which a geographical breakdown is available) were $8.0 billion. In addition to the NCR, $4.7 billion was spent in the provinces and territories. The remainder ($692 million) is not identified by region as it was either paid to foreign performers ($284 million) or cannot be assigned geographically ($408 million).

In spite of the slower growth of federal S&T spending in the NCR, it dwarfs any other jurisdiction, including its two closest rivals — Ontario and Quebec (see chart). When the NCR is excluded, the rate of growth for the period between FY96-97 and FY02-03 is 48.9%.

The federal government is the largest performer of federal S&T expenditures, accounting for $4.6 billion of the $7.3 billion accounted for geographically in FY02-03. Of that amount, $2.0 billion or 43.6% is spent outside the NCR. The higher education sector performed $1.7 billion, followed by business enterprise ($790 million) and other Canadian performers ($218 million).

Of the $7.3 billion in S&T accounted for geographically, $4.65 billion or 63.7% is spent on R&D. Not surprisingly, the lion’s share (71%) is performed in the NCR ($1 billion), Ontario ($1.3 billion) and Quebec ($1 billion). Other provincial shares are: British Columbia ($433 million), Alberta ($267 million), Nova Scotia ($163 million), Manitoba ($139 million), Saskatchewan ($117 million), Newfoundland ($77 million), New Brunswick ($76 million) and Prince Edwards Island ($176 million).

Of the total R&D spending, $2.2 billion is spent in-house, followed by higher education ($1.6 billion), businesses ($701 million) and other Canadian performers ($172 million).

The geographical distribution of in-house R&D spending varies widely according to the performer. Agriculture Canada, for instance, spends at $20 million or more in six different provinces and the NCR for a total of $215 million. The largest amounts spent by the Department of Fisheries and Oceans are spent in British Columbia ($33 million), Nova Scotia ($26 million) and Newfoundland ($17 million). Lesser but significant amounts are spent in Quebec ($15 million), Manitoba ($13 million) and Ontario ($12 million).

R&D spending by several other performers are largely confined to a single province, such as the Canadian Space Agency (Quebec — $144 million, and a nominal $10 million in the NCR) and Atomic Energy of Canada Ltd (Ontario — $120 million and $8 million in the NCR).

The bulk of the $570 million spent by the National Research Council in FY02-03 was conducted in the NCR ($400 million), followed by Quebec ($73 million), British Columbia ($21 million), Nova Scotia ($14 million), Saskatchewan ($14 million), Ontario ($12 million). Manitoba, Newfoundland and New Brunswick received $11 million each.

NATURAL SCIENCES DOMINATE

Federal expenditures on the natural sciences dominate with $5.75 billion or 78.7% of the FY02-03 total. As with the S&T total, the bulk of natural sciences S&T is spent in the NCR ($1.4 billion), Ontario ($1.4 billion) and Quebec ($1.2 billion).

Social sciences spending accounts for $1.6 billion, and takes place largely in the NCR ($1.2 billion).

The largest recipients of $697.1 million in federal R&D grants and contracts to industry in the natural sciences are Ontario ($297.8 million) and Quebec ($239.2 million), accounting for 77% of the total. Also receiving significant shares were businesses in British Columbia ($63.6 million), Alberta ($21 million), Newfoundland ($17 million) and Manitoba ($13.6 million).

A similar geographical distribution is found with the $1 6 billion in federal R&D grants and contracts to the higher education sector.

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