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Information on Health Research and Innovation in Canada

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The Current State of Health Research and Innovation in Canada

COVID-19 has showcased the strength of Canada’s health research and innovation ecosystem and the vital role it plays in our ability to protect and improve the health and wellbeing of all of the people of Canada, both in relation to pandemics like our current one and the myriad of health concerns that we continue to face every day across the country. While investments made in recent years—including throughout the pandemic—have been helping get us through COVID-19, the pandemic has also shed light on the dire consequences of an underfunded health research and innovation ecosystem.

Health research is a top priority for Canadians. A robust health research and innovation ecosystem is key to ensuring that Canada is prepared for future health crises and to protecting our future health security, social wellbeing and economic prosperity.

Canada at the international table

Worldwide, we are no longer in the top 30 nations in terms of total research intensity. Canadian gross domestic expenditure on R&D (GERD) relative to GDP has been declining slowly over the last 15 years, as contrasted to many other nations, and while Canada has the highest higher education expenditures on R&D (HERD) among the G7, the federal share is much lower than other countries at just 24%.[1] Long-standing insufficient investments into health research have led to tangible negative impacts, hampering innovation and development.

Source: Organization for Economic Co-operation and Development. Gross domestic spending on R&D

Supporting Canada’s health researchers and innovators

Both priority-driven and investigator-led research are critical elements of a dynamic and robust research ecosystem. Since 2000, support for priority-driven and patient-oriented research has steadily increased among the tri-councils, but these investments have not been matched with adequate growth in investigator-led funding for Canada’s frontline scientists,[2] leaving many researchers in Canada struggling to find funding for the health research projects that can lead to innovative health solutions. To illustrate, granting success rates at the Canadian Institutes of Health Research (CIHR) have declined from nearly 42% in 2000 to just 18% in 2021.[3] Bolstering support for investigator-led research is essential to redress the previous funding imbalance and promote an innovative health research ecosystem.

Doctoral students and post-doctoral fellows are integral to the advancement of health research and innovation in Canada. Federally-administered core graduate awards set a bar for Canada’s funding and quality of trainees. The number of federally-administered core graduate awards, however, has not increased since 2007, despite major increases in graduate and fellowship enrollments,[4] and early-career investigators have seen a similar drop in their success of obtaining CIHR project grants.[5] Moreover, while Budget 2019 did include additional funding for fellowships and scholarships, the value was insufficient for the system’s needs and it failed to include post-doctoral fellows as the beneficiaries of this investment. Direct enhancements to these federal awards will realize multiple returns, sending the message that Canada values and supports health research trainees.

Source: Canadian Institutes of Health Research

Funding for Canadian health research and innovation

Canada spends only 1.5% of total public expenditures on health to fund health research.

Source: Canadian Institute for Health Information. National Health Expenditure Trends, 1975-2020

Funding for Canadian health research and innovation – continued

Compared to our research hospitals and health and biosciences companies, Canada spends very little of public expenditures on health to fund health research.

Federal and provincial/territorial governments spend
1.5%
of total health expenditures on health research.
Canada’s top 40 research hospitals spend a median of
6.8%
of total hospital spending on health research.
The pharmaceutical and biotechnology companies on Canada’s top 100 Corporate R&D spenders spend a median of
10.1%
of total revenues on R&D.

Many of Research Canada’s Members, Supporters and Partners are among the top research hospitals and health and biosciences companies supporting health research and the development of innovative health products.

Sources: Research Infosource Inc. Canada’s Top 40 Research Hospitals 2020 and Canada’s Top 100 Corporate R&D Spenders 2020; Canadian Institute for Health Information. National Health Expenditure Trends, 1975 to 2020

Into the Future

Further efforts are sorely needed to ensure Canada reverses its previous course, propelling Canadian health research and innovation into a globally competitive space.

[1] Statistics Canada. Table 27-10-0025-01 Provincial estimates of research and development expenditures in the higher education sector, by funding sector and type of science

[2] Advisory Panel on Federal Support for Fundamental Science. Investing in Canada’s Future: Strengthening the Foundations of Canadian Research. (Government of Canada, 2017).

[3] Canadian Institutes of Health Research. Project Grant: Fall 2020 Results. https://cihr-irsc.gc.ca/e/52355.html

[4] Advisory Panel on Federal Support for Fundamental Science. Investing in Canada’s Future: Strengthening the Foundations of Canadian Research. (Government of Canada, 2017).

[5] Canadian Institutes of Health Research. Project Grant: Fall 2020 Results. https://cihr-irsc.gc.ca/e/52355.html

Research and Innovation in Action

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About Research Canada

Research Canada is a national, broad-based alliance dedicated to increasing investments in health research through collaborative advocacy. We believe health research is shared benefit, shared responsibility and an investment in Canada’s future. We engage government, academia, industry and non-profit sectors to build support for balanced and long-term health research funding – investments that strengthen Canada’s innovation system and lead to better health, sustainable health care, new commercialization opportunities, and skilled jobs for Canadians.

Research Canada: An Alliance for Health Discovery / Recherche Canada : Une alliance pour les découvertes en santé
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