Increases to higher education R&D funding continue remarkable run at modest pace

R&D spending on higher education increased an estimated 5.1% in FY05-06 to $9.5 billion, continuing a remarkable run which has seen total outlays increase by 170.4% over the past 14 years. Although the latest available FY increase is modest in comparison to recent years (11.2% in FY04-05 and 9.2% in FY03-04), all funding sources were up year-over-year, underscoring the transformation of university-based R&D funding over the past decade.

The data are contained in the latest higher education report from Statistics Canada, which provides a 14-year window on higher education funding. They show that, of all funding sources contributing to higher education R&D, the greatest increase was registered by foreign sources, which were up 479.1% between FY92-93 and FY05-06. The rates of increase in descending order are: private non-profit organizations (278.4%), provincial governments (230.1%) the federal government (199.9%), business (166.2%) and the higher education institutions themselves (133.5%).

Universities remain the single largest source of higher education funding ($4.4 billion) although it should be noted that the vast majority of their funding comes from federal sources.

Of all the provinces, Alberta funds the greatest share of higher education R&D spent in that province. In FY05-06, the province accounted for $182.7 million of the $962.2-million total or a 19% share. In comparison, the BC government's share was just 9%, while Ontario and Quebec governments contributions were just over 10%.

Higher education spending from all sources increased the most in Newfoundland, with a year-over-year increase of 28.4%. (Curiously, StatsCan data show that business contributed nothing to Newfoundland's higher ed R&D in FY05-06). New Brunswick had the second largest spending increase at 13.7%. Other rates of increase are: Manitoba (13.1%), PEI (12.8%) Nova Scotia (11.8%), BC (8.7%), Alberta (7.1%), Ontario (3.8%) and Quebec (3.6%). Saskatchewan's funding dropped 11.2%.

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