Analysis

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Estimates of Research and Development Expenditures in theHigher Education Sector, 2008/2009

National spending on research and development performed by higher education institutions which includes universities, all affiliated research hospitals, experimental stations and clinics was $10.9 billion in 2008/2009, a 7.3% increase over 2007/2008 in current dollars. In real or inflation adjusted terms this was $9.0 billion (based on 2002 constant year dollars), an increase of 3.2% from the previous year (table 1).

Estimates of R&D expenditures in the higher education sector are allocated by three science types: social sciences and humanities; health sciences; and natural sciences and engineering excluding health sciences (or other natural sciences).

In 2008/2009 the allocation of total higher education sector spending on research and development in the social sciences and humanities was $2.2 billion, a 7.4% increase from 2007/2008. Health sciences spending amounted to $4.4 billion, up 9.1% from the previous year. Other natural sciences and engineering increased 5.5% to $4.3 billion in 2008/2009. Taking into consideration inflation, the increase from the previous year for social sciences and humanities was 3.4%, health sciences 5.0% and other natural sciences and engineering 1.5% (tables 2, 5, 6, 7).

Just over two-thirds of total R&D spending in the higher education sector occurred in Ontario (42%) and Quebec (26%) in 2008/2009. The remainder of total R&D expenditures in the higher education sector was performed in the Prairies (16%), British Columbia (10%), and the Atlantic Provinces (6%) (table 3).

Sources of funding

There are six sectors that fund research and development expenditures in the higher education sector: higher education institutions; federal government; provincial government; business enterprise; private non-profit organizations; and, foreign.

Higher Education Sector

Higher education institutions remained the lead source of funding, contributing 46% of total higher education sector R&D expenditures in 2008/2009, or $5.1 billion, a current dollar increase of 10.6% from the previous year. Adjusting for inflation, higher education institutions provided $4.2 billion, up 6.4% from 2007/2008 (table 1).

Three-quarters of this funding was directed towards the natural sciences and engineering field comprised of health sciences (39%) and other natural sciences and engineering (36%). The social sciences and humanities field received 26% of the higher education institutions' contributions (table 2).

Similar to the national level, 69% of the funds contributed by this sector were held in Ontario and Quebec, as expected since this is where the majority of higher education institutions reside (table 3).

Federal Government Sector

The federal government remained the second largest contributor to R&D performed in the higher education sector providing $2.8 billion or 26% of total funding in current dollars. In real dollars this was a 0.6% decline, essentially no change in spending from the previous year (table 1).

Seventeen percent of this funding was allocated to social sciences and humanities activities, while 38% went to health sciences and 45% to other natural sciences and engineering (table 2).

Almost two-thirds (65%) of funds contributed by this sector were held in Ontario and Quebec. Twenty-three percent of federal funding of R&D expenditures in the higher education sector occurred in Alberta (10%) and British Columbia (13%) (table 3).

Provincial Government Sector

The provincial government sector contributed $1.1 billion in current dollars or 10% of the share in total spending on higher education research and development in 2008/2009, an increase of 6.9% over the previous year. Taking inflation into consideration, the provincial government provided $913 million, a 2.8% increase from the previous year (table 1).

Half of provincial government funding was allocated to other natural sciences and engineering activities, one-fifth to social sciences and humanities, and health sciences held the remaining 30% (table 2).

The Ontario government contributed 36% of total R&D in the higher education sector followed by 22% provided by the Quebec government. Over one-third of provincial funding for R&D expenditures in the higher education sector was from the governments of Alberta (22%) and British Columbia (12%) (table 3).

Business Enterprise Sector

Funding from the business enterprise sector increased slightly to $892 million current dollars in 2008/2009 or 8% of the total share of R&D spending in the higher education sector. In real dollars, taking into account inflation, the business enterprise sector's contribution dropped 1.3% to $737 million (table 1).

Over half (53%) of business enterprise contributions went to other natural sciences and engineering activities, while 43% was allocated to health sciences and 4% to social sciences and humanities (table 2).

Almost three-quarters of business enterprise support occurred in Ontario (46%) and Quebec (28%) (table 3).

Private Non-Profit Sector

In 2008/2009, private non-profit (PNP) organisations increased their contributions to $949 million in current dollars. In constant dollars this sector increased 2.6% to $783 million, or 8.7% of the total share of higher education sector R&D expenditures (table 1).

The majority of PNP support went to health sciences which provided 63% of total R&D spending in the higher education sector. Both social sciences and humanities and other natural sciences and engineering contributed almost 19% each (table 2).

Forty-five percent of PNP contributions took place in Ontario. Quebec held one-quarter of PNP contributions to R&D in the higher education sector and one-tenth occurred in British Columbia (table 3).

Foreign Sector

Foreign sector funding increased 15.4% to $114 million current dollars in 2008/2009. Considering inflation, foreign contributions increased 11% to $95 million constant dollars during the same time period. However, the foreign sector's share of funding for R&D in the higher education sector remained at 1% (table 1).

All of foreign sector funding of R&D in the higher education sector went to the natural sciences and engineering field, with 60% allocated to other natural sciences and engineering and 40% to health sciences (table 2).

Most foreign contributions took place in Ontario (47%) followed by one-fifth equally in each of British Columbia and Quebec (table 3).