Per capita expenditures on health R&D have nearly doubled since 1996 and expenditures took a 7% jump in 2003 alone to an estimated $5.1 billion. Universities remain the single largest performer of health R&D, accounting for $2.9 billion or 57% of the 2003 total while industry is the largest single funder, according to the latest data from Statistics Canada. Health R&D now stands at 22.6% of total gross domestic expenditures on R&D, up from just 15.8% in 1994.

The private sector funded $1.5 billion worth of health R&D in 2003 and performed $1.9 billion in 2003. In comparison, higher education funded $1.3 billion yet performed $2.9 billion. Higher education expenditures were funded by the institutions themselves ($1.3 billion), the federal government ($676 million), private non-profit organizations ($373 million), business enterprises ($256 million), provincial governments ($256 million) and foreign sources ($41 million).

The impact of the Canadian Institutes of Health Research (CIHR) becomes evident from 2000 onwards as health R&D’s share of GERD embarks on a steep upward trajectory (see chart below). CIHR funding helped push health R&D spending in the higher education sector up 38.5% between 2000 and 2003.

Spending by the business sector is nearly as impressive, increasing 33.7% in the same period and increasing nearly 10-fold since 1988 when it stood at just $196 million. The increase in health R&D funded by business increased from $198 million to $1.538 billion in the same 16-year period.

Even more dramatic is the increase in funding by foreign sources (multinational drug companies). From just $35 million in 1988, it now stands at $697 million, a 20- fold increase.

Health R&D outlays by the higher education sector are largely concentrated in Ontario and Quebec . In 2001, the latest year for which provincial breakdowns are available, they accounted for $1.7 billion or 71.2% of the total of $2.4 billion.

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