Analysis
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Federal departments and agencies reported that they intend on spending $10.9 billion on science and technology activities (S&T) for fiscal year 2012/2013, down 5.9% from 2011/2012. This decrease represents a return to more normal levels, due to the conclusion of federal stimulus spending. (table 1-1)
Since 2000/2001, S&T expenditures have increased by 62.7%, from $6.7 billion to $10.9 billion. The largest year-over-year increase within this 12-year period occurred in 2001/2002 when S&T expenditures increased 21.8% as a result of new federal S&T commitments. (chart 1 and table 1-1)
Reflecting the inflow of the latest tranche of funds for S&T activities related to stimulus spending, S&T expenditures peaked in 2010/2011 1 . Given the conclusion of overall stimulus spending, expected S&T spending reported by federal government departments and agencies for 2011/2012 will decrease by 3.2% from 2010/2011 expenditures, to $11.6 billion.
Accounting for inflation, federal government S&T spending reached a historic high of $9.8 billion in 2010/2011, an increase of 42.9% over the ten-year period from 2000/2001 to 2010/2011. (table 1-1)
Federal S&T expenditures are composed of two elements: research and development (R&D) and related scientific activities (RSA). Research and development is defined as "creative work, undertaken in a systematic manner to increase the stock of knowledge" (OECD, 2002). Related scientific activities include activities such as scientific data collection, information services, as well as special services and studies, all of which support R&D activities.
In 2012/2013, the majority, $7.0 billion or 64 %, of federal S&T spending will be dedicated to R&D activities, while RSA accounts for the remainder. (table 1-5)
S&T expenditures are available for two science types: natural sciences and engineering; and social sciences and humanities. Federal departments and agencies reported that they expect three-quarters of all federal government S&T spending will be directed to natural sciences and engineering and the rest will be spent on social sciences and humanities in 2012/2013. This proportion has remained fairly stable over the past twelve years. (table 1-6)
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. S&T payments for research and development (R&D) and related scientific activities (RSA) made to other performing sectors, such as higher education, business entreprises, private non-profit organizations, foreign and other entities, are known as extramural expenditures.
Intramural performance of science and technology (S&T) activities
Federal government departments and agencies reported that in 2012/2013, about one-half ($5.4 billion) of the expenditures on S&T activities will be performed within their organizations. Over half (54%) of this expenditure will be directed to RSA, with the remainder being spent on R&D. (table 1-11)
Extramural funding of science and technology (S&T) activities
Federal payments to extramural performers, as reported, are expected to decrease to $5.6 billion in 2012/2013, mainly the result of the winding down of payments to provincial governments for S&T activities under the stimulus program. (table 3-1)
It was reported that in 2012/2013, the higher education sector, which is the leading beneficiary of the federal government's extramural S&T spending, will receive $3.3 billion in federal payments. Just over 90% of these funds to be directed to R&D activities and the remaining for RSA. (table 3-1)
In 2012/2013, the dominant funders of extramural R&D activities will be the three granting councils: Canadian Institutes of Health Research ($894 million), Natural Sciences and Engineering Research Council ($876 million), and the Social Sciences and Humanities Research Council ($528 million), who together account for about $8 out of every $10 paid to the higher education sector for R&D activities. (table 3-3)
Federal science and technology (S&T) personnel
In 2012/2013, federal departments and agencies reported that they anticipate a total of 37,382 full-time equivalent (FTE) positions engaged in S&T activities. This figure represents a 4.0% decline from 2011/2012 FTE figures. Of these positions, 19,844 were classified as scientific and professional, 7,977 as technical and 9,562 as other positions engaged in support activities. (table 4-5)
In 2012/2013, almost six in 10 of all federal S&T personnel will be engaged in related scientific activities (RSA) (including the administration of extramural RSA programs). (table 4-1)
Socio-economic objectives of expenditures on research and development(R&D) activities
The three most important socio-economic objectives for federal extramural R&D spending in 2010/2011 2 were: protection and improvement of human health ($1.5 billion), non-oriented research 3 ($938 million) and industrial production and technology ($801 million). Payments to extramural performers for non-oriented research increased from 8% of total extramural payments in 2002/2003 4 to 19% in 2010/2011. (table 6-2)
In 2010/2011, the three most important socio-economic objectives that tended to be researched within government departments (intramural) were: energy ($717 million), agriculture ($360 million) and protection and improvement of human health ($280 million). The increased importance of energy research within the federal government is manifested by the growth of intramural expenditures on energy R&D from $214 million or 10% of intramural expenditures in 2002/2003 5 to $717 million or 25% of intramural expenditures in 2010/2011. (table 6-2)
Federal science and technology (S&T) investment in the regionsin 2010/2011 6
In 2010/2011, although total federal expenditures on S&T increased in Canada, five provinces, Newfoundland and Labrador, Nova Scotia, New Brunswick, Manitoba, and Saskatchewan, witnessed decreases from 2009/2010 spending levels. The remaining regions of the country recorded increases in expenditures. (table 5-1)
The largest dollar increases were in Ontario, the National Capital Region (NCR) and Quebec. In Ontario, federal science expenditures increased by 6.1% to almost $3.2 billion in 2010/2011. In the NCR, federal science expenditures (includes only intramural expenditures) also increased by 3.6% to $3.3 billion, while in Quebec, total S&T expenditures grew by 4.2% to reach $ 1.8 billion. (table 5-1)
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