Increased funding for the higher education sector is helping to boost Canada’s gross expenditures on R&D (GERD) to a projected $26.3 billion in 2005, up 4% increase from 2004, and 5.3% from 2003. Canada’s impressive R&D performance after a period of stagnation in 2001 and 2002 does not translate into a higher GERD/GDP ratio, however, due to robust economic growth that outstripped greater R&D expenditures.