The Socio-Economic Importance of Scientific Research To Canada

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The Socio-Economic Importance of Scientific Research to Canada Page 41© David A. Wolfe and Ammon SalterTable 7. Federal Expenditures on R&D by Major Department or Agency, 1988-89 to1997-98 (in millions of dollars)Department or Agency1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 p 1997-98 eAgriculture 300 307 332 334 319 328 323 327 346 308Atomic Energy of Canada 118 128 149 155 159 155 163 163 163 132CIDA 71 77 82 70 69 61 62 51 54 50Canadian Space Agency 128 122 332 360 379 314 292 265 175Energy, Mines and Resources 274 264 258 275 268 271Forestry Canada 68 70 76 82 92 106Natural Resources Canada 381 403 381 321Environment 73 81 91 97 119 135 174 164 131 119Fisheries and Oceans 117 126 138 135 111 114 114 112 119 100Health Canada 42 45 47 46 49 53 57 63 70 54ISTC 236 214 213 228 242Communications 59 57 54 46 44Industry Canada 317 322 268 305 297IDRC 82 89 80 88 82 89 78 73 71 71MRC 182 195 233 238 247 249 257 244 234 229National Defence 278 276 276 234 253 234 231 208 181 175NRC 463 421 451 419 458 441 449 419 446 440NSERC 323 347 420 432 445 439 440 425 405 390SSHRC 51 56 63 68 69 68 69 70 64 64Ford (Q) 24 28 30 35 24 26 31Western Economic Diversification 6 25 37 25 22 24 13 14 15 8Other 163 180 151 127 120 153 153 132 128 105Total 2,906 3,086 3,273 3,455 3,556 3,646 3,635 3,452 3,404 3,069Note: p = preliminary figures; e = estimatesSource: Statistics Canada, Table 6, Federal Government Expenditures on Scientific Activities,1997-98, Service Bulletin Science Statistics, Vol. 21, No. 4, Ottawa, May, 1997.These data reflect the impact of the increased commitment to research and development in thelate 1980s with the introduction of the Innovaction program. Spending rose from $2.9 billionin 1988-89 to a peak of $3.6 billion in 1993-94, the year before the S&T Review began.Somewhat ironically, this level of federal spending represented the all–time high, rather thanthe norm. In the period since the introduction of the restraint budget in 1995, federalspending on R&D has fallen back to $3.0 billion, virtually the same level as a decade earlier incurrent dollars, and significantly less in real dollars, when allowance is made for the impact ofinflation. The data presented below in Table 8 reflect the changing level of federal spendingon R&D over the same period in both current and constant (real) dollars, as well as changes inthe share of R&D spending as a proportion of total government spending. It should be noted41
The Socio-Economic Importance of Scientific Research to Canada Page 42© David A. Wolfe and Ammon Salterthat the figures in the column for budgetary main estimates includes the spending on publicdebt interest costs, which rose dramatically in the early 1990s, as a result of the impact of therecession and higher interest rates.Table 8. Federal Expenditures on R&D in Current and Constant 1986 Dollars, 1987 to1997 (in millions of dollars)Year Budgetary R&D R&D as a % change GDP Budgetary R&D % changeMain % of the year-to- Implicit Main year-to-Estimates Main Est. year Price Index Estimates yearcurrent dollars constant dollars1987 125,535 2685.00 2.14 104.7 119,900 2564.501988 133,000 2906.00 2.19 8.24 109.6 121,350 2651.60 3.421989 142,900 3086.90 2.16 6.19 114.9 124,369 2685.60 1.291990 147,593 3273.40 2.22 6.07 118.5 124,551 2762.40 2.851991 157,528 3455.50 2.19 5.56 121.9 129,227 2834.70 2.621992 160,517 3556.50 2.22 2.92 123.4 130,079 2882.10 1.671993 161,089 3646.20 2.26 2.52 124.7 129,181 2924.00 1.451994 160,738 3635.30 2.26 (0.30) 125.6 127,976 2894.30 (1.02)1995 164,191 3452.00 2.10 (5.04) 127.5 128,777 2707.50 (6.45)1996 p 156,985 3403.80 2.17 (1.40) 129.1 121,600 2636.60 (2.62)1997 e 149,194 3069.00 2.06 (9.84)Notes: p = preliminary figures; e estimatesSource: Statistics Canada, Table 1, Federal Government Expenditures on Scientific Activities,1997-98, Service Bulletin: Science Statistics, 21:4, Ottawa, May, 1997.The data in this table indicate that from the late 1980s to 1994, federal spending on R&D rosein both current and constant dollars, and — more significantly — as a share of totalgovernment spending. This rise in the proportion of total federal spending devoted to R&Doccurred despite the increasing share that was also absorbed by public debt interest costs in theearly 1990s. After reaching its peak in 1994, it has fallen steadily in the past three years. Ifthe estimates for the current year prove to be accurate, spending on R&D will fall to a smallershare of total federal spending than it received a decade ago./These estimates of federal R&D spending include a range of activities that go well beyond thefocus of this report — basic scientific research. Given that there is no comprehensive set ofdata collected for spending on basic research, the closest proxy we can find is spending onR&D in the higher education sector. Federal spending on research in this sector represents42
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