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Research is a central mission of universities, and applied research is an increasingly important activity in colleges. Research is generally accepted to be a good in itself and one of the fundamental purposes of post-secondary education.
Research also paves the way for innovation. The results of research in the humanities and in the natural, life and social sciences lead to improvements in our standard of living and quality of life. The development and application of research through technology and innovation, commonly called R&D, is a central factor influencing economic growth in the modern economy.
Canada depends more on the post-secondary sector for R&D than most other developed countries. Private sector R&D is heavily concentrated in central Canada. University-based research—the major form of R&D in many provinces—requires strong, ongoing support if Canada’s economy is to be innovative and competitive in the 21st century.
Despite the importance of research to the vitality of our economy and our society, Canada's gross expenditure on research and development (GERD) remains relatively low—below the OECD average. In 2001, concerns about Canada’s innovation performance prompted federal and provincial governments to agree to work together to move Canada from 15th place to become one of the top five OECD countries in terms of research intensity. An ambitious R&D agenda has since been pursued through a variety of policy and program initiatives. While this was a necessary first step, good intentions have yet to translate into improved results: Canada continues to lag behind most other developed countries, and risks falling further behind in an aggressive global marketplace.
To meet this objective, Canadian governments need to set and meet R&D expenditure targets based on a percentage of GDP, following the example of European countries. For instance, in 2003, the GDP share of total funding for research in Finland was 3.5%, in Australia 2.19% and in Germany 2.52%.[1] The EU has set a target of 3% by 2010. Establishing a similarly challenging benchmark in this country might enable Canada to keep pace with these and other international competitors. To meet this target requires substantial enhancement of public and private sector R&D performance.
Canada must also develop ways to measure the effectiveness of major public investments in R&D—such as graduate scholarships and Canada Research Chairs—to evaluate their long-term performance, to determine whether Canada is spending its research dollars wisely and to compare Canada’s innovation performance with that of its global competitors.
Additionally, Canada needs to assess the benefits and impacts of the knowledge transfer that takes place from post-secondary institutions to industry. We need better methods for gauging whether new knowledge being generated in university and college labs is being applied in the private sector through patenting and licensing, which are indicators of innovation and commercialization. Such data should be consistently collected and analyzed.
To ensure Canadian colleges and universities produce an adequate supply of the highly qualified graduates required to spur innovation in both the private and public sectors, and to replace retiring professors and researchers, Canada, like the EU, should set benchmark objectives for increased numbers of graduates in mathematics, science and technology to address the current and growing shortage.
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[1] Sharpe, A. (2006). Challenges Facing Canada in the areas of Productivity, Innovation and Investment. Presentation to the Conference on Canada’s Competitiveness and Prosperity, organized by the Institute for Competitiveness and Prosperity. Ottawa.
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