University and Hospitals Impact Society, Economy Through Research Contracts

TORONTO, Sept. 20 /CNW/ - Today, The Impact Group, one of Canada's leading science and technology policy consulting companies, released a new study (Knowledge Transfer Through Research Contracting) highlighting the scale and scope of research contracting taking place at Canadian universities and hospitals/health authorities (full report at www.impactg.com). The study, which was based on data supplied by a sample of 17 universities and 4 hospitals or health authorities, found that these organizations conducted 2,645 research projects in 2008-09, under contract to outside organizations, with a total value of $257.5 million.

Contract research is the largest single category of research funding at Canadian universities and hospitals/health authorities - exceeding the annual funding provided by any public sector research granting agency. (Total contracting for all universities and hospitals/health authorities in Canada was $1.154 billion in 2006, $1.274 billion in 2007 and $1.971 billion in 2008 - accounting for between 20-30% of all research funding in those years.)

Sponsored by a group of public sector organizations concerned with research, the study examined the characteristics of contract research performed by universities and hospitals/health authorities - over and above research funded by grants and contributions. Project leader Ron Freedman, a Partner in the firm, explained why the study is so pivotal:

    
    "Research contracting is arguably the most important mechanism for
    research knowledge transfer from higher education institutions, yet it
    flies under the radar of policymakers. A great deal of effort is being
    devoted to supporting the commercialization of technology developed in
    universities and hospitals. Yet, a more important source of knowledge
    transfer and economic and social returns is the huge volume of research
    contracting between universities and hospitals and outside organizations
    every year. Such contracting revenues easily eclipse the $53 million a
    year of revenue from traditional technology commercialization activities.
    Our study shows that the real action, and the primary benefit for society
    and the economy, is in providing knowledge to external organizations that
    have an identified need and are willing to pay hard money for results."
    

Key findings include:

    
    -  A rough calculation suggests that the $1.154 billion of contract
       research in 2006 likely employed in excess of 11,000 highly qualified
       personnel - graduate students, postdoctoral fellows, technicians and
       technologists, administrative staff, and suppliers. Research contracts
       also provided overhead funds to the host institutions, helping to
       defray some of their core operating expenses.

    -  Research contracts are dominated by projects in the Health/Life
       sciences disciplines. Over 40% of 1,888 sample contracts let to
       universities and hospitals/health authorities were classified either
       as Health (1.6%), Life Science (24.0%) or Medicine (15.9%). The next
       largest category was Engineering (19.1%). Social Science (12.5%) and
       Humanities (4.2%) projects together accounted for 16.7% of the
       contracts classified by number.

    -  Institutions reported that they had signed contracts with
       organizations in 22 different countries during the study period.
       Canadian organizations were dominant (83.8% of the total), followed
       by organizations in the U.S. (12.3%) and Europe (3.1% in total).

    -  Organizations located in Canada placed contracts with a total value
       of $174.7 million, followed by organizations in the U.S.
       ($69.1 million) and Europe ($6.5 million). Canadian sources accounted
       for 68.6% of the total value of contracts, compared with 27.1% for
       U.S. sources and a total of 2.6% for European sources.

    -  The Federal Government was the largest single research contractor both
       by number and by dollar value, providing $49.4 million for research.
       Foreign Non-Profit organizations ($34.3 million), Canadian Companies
       ($30.3 million) and Canadian Non-Profit ($28.4 million) organizations,
       followed by Provincial Governments ($27.3 million) were the largest
       research funders overall.

    -  The four hospitals/health authorities that participated in the survey
       conducted 782 of 2,645 research projects in the project database -
       29.6% of the total - and accounted for $40,534,207 out of $257,492,721
       total research funds - 15.7% of the total.

    -  Canadian companies funded a higher proportion of contracts in Atlantic
       Canada than in other parts of the country. Canadian companies were
       responsible for 40.2% of all Atlantic contracts, slightly more than
       the Federal Government (37.8%).
    

According to Mr. Freedman "Canadian university and hospital researchers are doing a great job of transferring their knowledge to companies, governments and the non-profit sector through research contracts. Initiatives that raise awareness among companies and researchers of each other's needs and capabilities and support research contracting, will pay big dividends for Canada."

View the report at: www.impactg.com

For further information: Ron Freedman, Partner, [phone] ext. 31; Janet Sandor, Director of Communications, [phone] ext. 25