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1. Federal departments and agencies reported that they intend on spending $10.3 billion on science and technology activities (S&T) for fiscal year 2014-2015, down 5.4% from the previous fiscal year (table 1).
2. Federal government S&T expenditures were on the rise from 2002-2003, peaking in 2010-2011($12 billion) and, since then, have continuously declined (table 1).
3. From 2010-2011 to 2012-2013, actual federal government S&T expenditures fell by 7.1%. Despite the drop in recent years, from fiscal year 2002-2003 to 2012-2013, actual expenditures increased 39.3% in current dollars. When inflation is taken into account this increase is 8.9% in real or constant dollars (table 1).

Research and experimental development (R&D) and Related scientific activities (RSA)

Federal S&T expenditures are composed of two components: research and development (R&D) and related scientific activities (RSA). R&D is defined as "creative work, undertaken in a systematic manner to increase the stock of knowledge" (OECD, 2002). RSA are focused on the generation, dissemination and application of scientific and technical knowledge, examples include the gathering, processing and analyzing of data, feasibility and policy studies, information services and museum services.

1. In 2014-2015, more than 63%, or $6.5 billion, of the anticipated federal spending will be dedicated to R&D activities, with the remaining $3.8 billion directed to RSA. Compared to the previous fiscal year, it is anticipated that R&D expenditures will drop by 5.2% and RSA expenditures reduced by 5.7% (table 1 or table 2).

1. From 2002-2003 to 2012-2013 expenditures on R&D increased 42.9% in current dollars and 11.7% in constant dollars. In comparison, RSA expenditures during the same time period increased 33.7% in current dollars and 4.5% in constant dollars (table 1).

Federal expenditures on science and technology can also be categorized by R&D or RSA sub-activities (such as R&D contracts, Research fellowships, Data collection, etc.).

1. The largest sub-activity of S&T expenses is typically research and development (R&D) grants and contributions (G&Cs). In 2014-2015, R&D grants and contributions are expected to be $3.7 billion and account for 36.4% of the total S&T expenditures (table 4).

1. The second largest S&T expenditure sub-activity is the RSA activity of general purpose data collection, which is anticipated to be $1.9 billion and account for 18.7% of total federal S&T expenditures (table 4).

Federal science and technology (S&T) expenditures by science type

S&T expenditures are also available for two science types: natural sciences and engineering; and social sciences and humanities.

1. More than three-quarters of federal S&T expenditures, or $7.9 billion (76.4%), are expected to be directed to natural sciences and engineering, with the remaining $2.4 billion (23.6%) to social sciences and humanities (table 3).

1. Compared to 2013-2014, expenditures directed toward natural sciences and engineering are expected to decline in 2014-2015 by six percent. Expenditures directed toward social sciences and humanities are also expected to decline in 2014-2015 by 3.7% compared to the previous year (table 3).

Intramural and Extramural performance of Science and Technology (S&T) activities

S&T expenditures made within the federal government, such as salaries of scientific personnel and the materials and equipment required to support their activities, are known as intramural expenditures (in-house). S&T payments for research and development (R&D) and related scientific activities (RSA) made to other performing sectors, such as higher education, business enterprises, private non-profit organizations, provincial and municipal governments, foreign and other entities are known as extramural expenditures.

1. Extramural expenditures are expected to account for just over half (50.7%) or $5.2 billion of federal government expenditures in 2014-2015, a drop of 5.0% compared to 2013-2014 (table 6). Intramural expenditures are projected to account for the remainder ($5.1 billion), with an anticipated decrease of 5.9% from 2013-2014 (table 5).

1. Over half (54.5%) of the total intramural S&T expenditures are expected to be directed toward RSA (table 5). In comparison, extramural expenditures are highly concentrated in R&D activities and for 2014-2015 are anticipated to make up 80.6% of total S&T spending (table 6).

1. Almost all of the extramural performers, with the exception of provincial and municipal governments and other Canadian performers are expected to receive less funding for federal S&T activities in 2014-2015 compared to 2013-2014. Provincial and municipal governments anticipate a 6.7 percent increase in 2014-2015, resulting primarily from expected increases in RSA activity. The overall funding for the other Canadian performers is expected to remain unchanged (table 6).

1. With respect to the performing sector for 2014-2015, the share of the higher education sector is expected to make up almost 31% of total federal S&T expenditures, followed by the business enterprise sector at around 9% (table 3).

1. The higher education sector continues to be the largest expected extramural performer of the federal government’s extramural S&T spending. This sector expects to receive 61% of total extramural expenditures; this share is expected to increase 2.4% compared to 2013-2014. The second largest recipient of federal extramural S&T spending is the business enterprise sector which expects to receive 17.7% of total extramural expenditures, down 2.3% compared to the previous year (table 6).

Federal Science and Technology (S&T) personnel

1. In 2014/2015, federal departments and agencies reported that they anticipate a total of 35,189 full-time equivalent (FTE) positions to be engaged in S&T activities. This represents a 2.8% decline from 2013/2014 values. Over half of these positions, or 19,109 FTE’s, are expected to be in the scientific and professional personnel category (table 8).

1. Between 2013/2014 and 2014/2015, both R&D and RSA personnel expect around a 3% decline to 15,541 and 19,648 FTEs, respectively. The RSA scientific and professional category remains the largest component at 11,553 FTE’s representing 32.8% of all anticipated federal science and technology personnel (table 8).

1. When total S&T personnel are split by science type for 2014-2015, natural sciences and engineering anticipate 25,768 FTEs or 73% of the total personnel, with the remainder expected to be in the social sciences and humanities. Compared to the 2013-2014, S&T personnel working in the social sciences and humanities show a larger percentage decrease in FTEs (-3.6%) compared with those in the natural sciences and engineering (-2.5%). However, in terms of absolute numbers more S&T personnel are anticipated to be lost in the natural sciences and engineering field at 651, versus the social sciences and humanities which expect to lose 355 S&T personnel (table 7).

Federal science and technology (S&T) investment by region in 2012-2013

1. In 2012-2013, overall federal S&T expenditures in Canada decreased by 2.1%, mainly due to a decrease of $178 million in spending in the National Capital Region (NCR) of Ontario and Quebec. In 2012/2013 the NCR spending of $3.3 billion was down 5.2% from the previous year and represented 29.3% of total (Canada and foreign) S&T expenditures, the highest total amongst all regions (table 9).

Socio-economic objectives of expenditures on research and development (R&D) activities, 2012-2013

Socio-economic objectives allow departments to classify their S&T resource allocations according to the purpose for which the expenditure is intended. The objectives are based on the Nomenclature for the Analysis and Comparison of Scientific Programmes and Budgets produced by the Statistical Office of the European Communities (Eurostat).

1. The three most important socio-economic objectives for federal extramural R&D spending in 2012-2013 were: Protection and improvement of human health ($1.5 billion), Industrial production and technology ($937 million), and Non-oriented research ($636 million). These have remained the principal objectives in terms of spending since 2002-2003. Non-oriented research covers basic activities motivated by scientific curiosity with the objective of increasing scientific knowledge. It also includes funding used to support postgraduate studies and fellowships (table 10).
2. In 2012-2013, the three primary socio-economic objectives for federal intramural R&D spending were: Production, distribution and rational utilization of energy ($561 million), Agricultural production and technology ($485 million), and Defence ($258 million). Agriculture production and technology is a combination of the socio-economic objectives of: Agriculture, Fishing and Forestry (table 10).