Confronting the challenges of responding to rising demand for higher education and research

1. Confronting the challenges of responding to rising demand for higher education and research CAUBO June 20, 2005

2. The fastest growing occupations require the most education Source: Statistics Canada, Labour Force Survey, 2004

3. Provincial operating evenues, when adjusted for inflation, have risen strongly over the past seven years Expectation / requirement to grow enrolment Source: AUCC using data from Statistics Canada

4. Universities are using those resources to respond to growing enrolment demand Trends projections Almost 130,000 in three years –well beyond halfway to the 2011 projection Source: Statistics Canada data and AUCC projections

5. Direct Costs of Research Restoration of granting agencies funding to1994 level Annual increases to granting agencies budgets since 1998 Infrastructure Canada Foundation for Innovation $500 million for research hospitals Indirect Costs of Research One-time support (2001) Permanent support 2003-04 and beyond Human Resources Canada Research Chairs Graduate studies - 4,000 scholarships by 2007-08 Contributions of the last eight federal government budgets to the foundations of university research

6. Strong signals that PSE is rising on the political agenda • Major space increases in Ontario, B.C. and Alberta in response to rising demand • CMEC: Fall 2004 and Spring 2005 • Provinces need to address Aboriginal education and PSE capacity/ infrastructure issues • Provincial reviews of PSE • NB, Newfoundland and Québec • Rae in Ontario – calls for greater federal investment • Council of the Federation • “the restoration of higher education as key to our future.” • Dedicated PSE transfer - Liberal and Conservative conventions • Layton Budget and McGuinty deal

7. Since 1997, all sectors have increased their investments in university research Federal Government Provincial Governments Private Sector Not-for-Profit Foreign Source: Statistics Canada, Estimates of Canadian research and development expenditures

8. The majority of recent federal investments in university R&D have been over the last 3 or 4 years – more time is required to realize the returns on these investments 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Total Millions of current dollars GRANTING COUNCILS $683 $768 $868 $953 $1,069 $1,196 $1,314 $6,850 CANADA FOUNDATION FOR INNOVATION $27 $114 $183 $231 $325 $349 $1,231 CANADA RESEARCH CHAIRS $13 $59 $103 $146 $321 GENOME CANADA $2 $43 $60 $83 $188 INDIRECT COSTS $200 $225 $425 Total $683 $795 $982 $1,151 $1,603 $1,683 $2,117 $9 B Beginning of federal reinvestment in research Canada Foundation for Innovation Canada Research Chairs Indirect costs – one-time payment Genome Canada Indirect costs – permanent program Source: AUCC estimates

9. Support for R&D represents a long-term investment in Canada’s future “Breakthroughs don’t happen by chance, they happen through sustained and dedicated effort. Research today is the source of new jobs tomorrow.” Finance Minister Paul Martin, Budget Speech, 2001 “You have to recognize that the more basic the research, the longer-term the payoff is; so if people get into a mindset that you have to get a rapid return on your money, you're just not going to. That's not the nature of research, but it's critically important.” Industry Minister David Emerson, House of Commons Standing Committee on Industry, Natural Resources, Science and Technology, 2004 “We should not look for short-term payback for that $13 billion we have invested…” National Science Advisor Dr. Arthur Carty, House of Commons Standing Committee on Industry, Natural Resources, Science and Technology, 2004