Study: Science and engineering employment in Canadian and US metropolitan centres

1981 to 2001

Based on the strength of their science and engineering (S&E) work forces, Canadian cities have the same innovative capacity as US cities, with Ottawa, Calgary and Toronto leading the way.

Many analysts argue the Canadian economy compares poorly to the US economy with respect to its innovative capacity, which, among other factors, depends critically on the supply of trained scientists and engineers.

Increasingly, analysts point to cities as hot beds of innovation, with Silicon Valley regarded as the quintessential innovative region. A study released today compares the innovative capacity of Canadian and US metropolitan areas using their shares of employment in S&E occupations.

In 2001, scientists and engineers represented 5.6% of all paid employment in Canada's metropolitan areas. This compares favourably to the proportion of 5.1% in the United States.

Two decades earlier, the proportions were almost the same — 2.9% in Canada and 3.0% south of the border. Employment in science and engineering in Canadian cities increased at a faster pace than in US metropolitan areas during this 20-year period.

Topping the list of 316 urban centres ranked by their share of S&E employment was San Jose, which includes Santa Clara County, the heart of the original Silicon Valley in California. There, scientists and engineers accounted for 15.7% of all paid employment in 2000, three times the national average for the United States.

Second on the list was Silicon Valley North, Ottawa–Gatineau, where scientists and engineers represented 11.6% of employment, twice the national average for Canadian cities.

In addition to Ottawa–Gatineau, 2 other Canadian cities were in the top 30 in this list. Calgary, where scientists and engineers accounted for 7.6% of employment, was in 22^nd place, while Toronto was in 30^th with a share of 6.7%.

The study compared 316 Canadian and American centres with populations of more than 100,000 because they all compete for science and engineering talent. It pointed out that in Canada there is evidence that gains in human capital are associated with higher levels of productivity growth, which in turn is an important contributor to long run economic growth. Science and engineering occupations require large investments in human capital.

Toronto ranked seventh in North America in terms of total S&E employment

In term of absolute numbers, three American urban centres had the largest scientists and engineering work forces.

They were: the New York–Northeastern New Jersey region; the Washington, D.C.–Maryland–Virginia area; and the Los Angeles–Long Beach region.

The Canadian centre with the largest contingent of S&E employment was the census metropolitan area of Toronto. It had nearly 161,600 scientists and engineers in 2001, which placed it just behind Boston and just ahead of Dallas–Forth Worth.

Montréal was 16^th on the list of the 30 largest North American centres in terms of total S&E employment, with just over 91,500. Two other Canadian centres made the top 30: Ottawa–Gatineau ranked 21^st and Vancouver 26^th.

Science and engineering employment concentrated in large metropolitan areas

The study found a strong positive association between city size and both the share of its work force in science and engineering occupations, and the growth of this share over time.

Big cities did better than small cities. Not only did larger cities have a significant advantage, but their advantage has been increasing. On average, larger cities experienced a greater increase in their S&E employment share between 1981 and 2001.

In 2001, on average, S&E employment represented 6.3% of paid employment in metropolitan areas with a population over 4 million. In contrast, among those with a population of between 100,000 and 249,999, the share was only 3.3%.

Larger cities may have this advantage because their economies generate stronger demand for scientists and engineers. For instance, high technology industries, which employ many scientists and engineers, tend to be more prevalent in large cities.

Large cities are probably also more attractive to scientists and engineers. Such markets provide a wide variety of employment opportunities for scientists and engineers that often have very specialized sets of skills.

Canadian cities faired well when compared to similar sized US cities

The study examined the relative S&E strength of Canadian metropolitan areas by comparing them to US cities of similar size. On the whole, several urban centres performed well.

Toronto's share of S&E employment ranked 3^rd out of the 10 metropolitan areas with a population greater than 4 million. Montréal ranked 8^th out of 15 metropolitan areas with a population between 2 and 4 million.

Ottawa–Gatineau ranked 2^nd out of the 28 metropolitan areas with a population between 1 and 2 million. Calgary ranked 2^nd and Quebec City 3^rd out of 43 metropolitan areas with a population between 500,000 and 999,999.

Victoria, Kitchener, Halifax, Oshawa, London and Windsor placed at or above the median for metropolitan areas with a population between 250,000 and 499,999. St. John's, Guelph, Regina, Saint John, Kingston, Moncton, and Saskatoon placed above the median for metropolitan areas with a population between 100,000 and 249,999.

Ottawa–Gatineau doubled its share of S&E employment over two decades

Between 1981 and 2001, the biggest gain in the proportion of S&E employment among Canadian centres occurred in Ottawa–Gatineau. Scientists and engineers accounted for 11.6% of all Ottawa–Gatineau's employment in 2001, over twice the proportion of 5.2% in 1981.

The census metropolitan area of Toronto was second, increasing its share by 3.5 percentage points from 3.2% to 6.7%. The third highest change occurred in Montréal, which increased its share from 2.6% to 5.5%.

The smallest gains were in St. Catharines–Niagara, Saguenay and Greater Sudbury.

Silicon Valley: North versus South

The study pointed to several differences between the North and South versions of Silicon Valley, Ottawa–Gatineau and San Jose.

Growth in employment among scientists and engineers was stronger in Ottawa–Gatineau between 1981 and 2001. In 1981, S&E employment in Ottawa–Gatineau represented 36% of San Jose's. By 2001, Ottawa–Gatineau's had increased its proportion to 49%.

A much higher proportion of Ottawa–Gatineau's science and engineering population was in the non-business sector in 2001, reflecting its status as a national capital.

In 1981, 61% of Ottawa–Gatineau's S&E work force was in the non-business sector, while this sector accounted for only 6% of San Jose's S&E work force. By 2001, the private sector component had strengthened in Ottawa–Gatineau and two-thirds of the S&E work force was in the business sector. However, the business sector still employed a much larger share of San Jose's work force of scientists and engineers.

Overall, Ottawa–Gatineau's S&E work force was more oriented towards information technology professionals (computer and information scientists and software engineers) than San Jose's. Information technology professionals made up 71% of Ottawa–Gatineau's S&E work force in 2001, while these workers made up 60% of San Jose's work force.

Definitions, data sources and methods: survey number 3901.

The research paper The Canadian Economy in Transition: Innovation Capabilities: Comparing Science and Engineering Employment in Canadian and US Cities (11-622-MIE2006012, free) is now available online. To obtain a copy, go to the Our products and services page online.

More studies related to innovation and technology use are available free of charge in the analytical series Update on Economic Analysis on our website (11-623-XIE).

For more information, or to enquire about the concepts, methods or data quality of this release, contact Mark Brown (613-951-7292) or Desmond Beckstead (613-951-6199) of the Micro-economic Analysis Division.