Investment, Science and Technology Division (ISTD)
Activities in the natural sciences and engineering
Introduction
This introduction provides an overview of the process of collecting scientific expenditures data. Definitions and explanatory notes relating to natural sciences and engineering, scientific and technological activities, and other terms used are given in subsequent sections.
Since 1973, Statistics Canada has been collecting detailed expenditure and full-time equivalent data on scientific activities of provincial research organizations. These data, coupled with data from other surveys, have been used by policy analysts in federal and provincial governments, research managers and the media to elaborate on the provincial scientific activities.
Intramural research and development expenditures are a direct input into the Canadian gross domestic expenditures on research and development (GERD) indicators.
Expenditures on research and development (R&D) and related scientific activities (RSA) are subdivided into "current expenditures" and "capital expenditures". Current expenditures indicate the "where" and "by whom" the activities are performed. (e.g., internally by the organization or by external performers).
Personnel are allocated to research and development or related scientific activities, and distributed into the following categories: scientific and professional personnel, supporting personnel, and other.
1. Total scientific and technological expenditures by activity in the natural sciences and engineering
Definitions and explanations of terms
Natural sciences and engineering consists disciplines concerned with understanding, exploring, developing or utilizing the natural world. Included are the engineering and technology, mathematical, computer and information sciences, physical sciences, medical and health sciences, and agriculture sciences, veterinary sciences and forestry.
The questionnaire covers two consecutive fiscal years and the headings for both years are identical. One set of definitions/explanations therefore suffices.
Actual and preliminary expenditures on scientific and technological activities are to be classified according to the type of scientific activity and who performed or will perform the scientific activity (intramural or extramural).
Scientific and technological (S&T) activities can be defined as all systematic activities which are closely concerned with the generation, advancement, dissemination and application of scientific and technical knowledge. The central activity is scientific research and experimental development (R&D). In addition there are a number of activities closely related to R&D, and are termed related scientific activities (RSA). The RSA identified as being appropriate for provincial research organizations in the natural sciences and engineering are: scientific data collection, information services, and special services and studies.
A. Research and development (R&D)
Research and experimental development – comprises creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.
In this survey, the term research and development (R&D) is synonymous with research and experimental development.
R&D activities may be aimed at achieving either specific or general objectives. R&D is always aimed at new findings, based on original concepts (and their interpretation) or hypotheses. It is largely uncertain about its final outcomes (or at least about the quantity of time and resources needed to achieve it), it is planned for and budgeted (even when carried out by individuals), and it is aimed at producing results that could be either freely transferred or traded in a marketplace.
For an activity to be an R&D activity, it must satisfy five core criteria:
- To be aimed at new findings (novel);
- To be based on original, not obvious, concepts and hypothesis (creative);
- To be uncertain about the final outcome (uncertainty);
- To be planned and budgeted (systematic);
- To lead to results that could be possibly reproduced (transferable/or reproducible).
Examples of R&D:
- A special investigation of a particular mortality to establish the side effects of a certain cancer treatment is R&D.
- The investigation of new methods of measuring temperature is R&D, as is the study and development of new models for weather prediction.
- Investigation on the genetics of the species of plants in a forest in an attempt to understand natural controls for disease or pest resistance.
- The development of new application software and substantial improvements to operating systems and application programs.
R&D is generally carried out by specialized R&D units. However, an R&D project may also involve the use of non-R&D facilities (e.g., testing grounds), the purchase or construction of specialized equipment and materials, and the assistance of other units. Costs of such items, attributable to the project, are to be considered R&D costs.
R&D may also be carried out by units normally engaged in other functions, for example, a marine survey ship used for hydrological research. Such effort is part of an R&D project and, again, so far as is practical, the costs should be assigned to R&D expenditures.
Any activities performed in direct support of an R&D project or program, such as technical advisory services and testing should be included with R&D expenditures.
Intramural (in-house) R&D
Intramural (in-house) R&D is defined as all expenditures for R&D performed within your organization by your personnel during a specific period, whatever the source of funds.
Administration of extramural R&D programs – the costs, including salaries, of personnel engaged in the administration of contracts and grants for research and development activities that are to be performed outside the provincial research organizations.
Current expenditures – include expenditures related to wages and salaries of in-house personnel, including salaries and contributions to employee benefit plans (e.g. pension); materials and supplies; contract payments to contractors working on-site within your organization's premises; as well as costs for personnel engaged in the administration of extramural (external) R&D contracts and grants.
Capital expenditures – the annual gross amount paid for the acquisition of fixed assets that are used repeatedly or continuously in the performance of R&D activities for more than one year. They should be reported in full for the period when they took place, whether acquired or developed in house, and should not be registered as an element of depreciation.
The most relevant types of assets used for capital expenditures are:
- Land and buildings
- Machinery and equipment
- Capitalized computer software
- Other intellectual property products
Extramural (external) R&D
Extramural (external) payments are made by the provincial research organizations for R&D activities performed by extramural sectors and these sectors are defined as follows:
Business enterprise – business and government enterprises include public utilities and government-owned firms. Both financial and non-financial corporations are included. Incorporated consultants providing scientific and engineering services are also included. Industrial research institutes located at Canadian universities are considered to be in the higher education sector.
Higher education – comprises all universities, colleges of technology and other institutes of post-secondary education, whatever their source of finance or legal status. It also includes all institutes and centers of research, experimental stations and clinics that have their scientific activities under the direct control of, or administered by, or associated with, the higher education establishments.
Hospitals and health organizations – Canadian hospitals and health organizations which are not part of university medical schools.
Federal, provincial and municipal governments – departments and agencies of these governments. Government enterprises, such as provincial utilities are included in the business enterprise sector.
Other Canadian performers – include individuals or organizations in Canada not belonging to any of the above sectors, for example, foreign government agencies, foreign companies (including foreign subsidiaries of Canadian firms), and international organizations.
Extramural expenditures include:
Contract payments to an outside institution or individual performing R&D.
R&D grants and contributions – awards to organizations or individuals for the conduct of R&D.
B. Related scientific activities (RSA)
Related scientific activities are all systematic activities which are closely concerned with the generation, advancement, dissemination and application of scientific and technical knowledge. The types of related scientific activities for the natural sciences and engineering are described below.
Related scientific activities include:
Scientific data collection – the gathering, processing, collating and analyzing of data on natural phenomena. These data are normally the results of surveys, routine laboratory analyses or compilations of operating records.
Data collected as part of an existing or proposed research project are charged to R&D. Similarly, the costs of analyzing existing data as part of a research project are R&D costs, even when the data were originally collected for some other purpose. Examples of RSA scientific data collection are: routine geological, hydrographic, oceanographic and topographic surveys; routine astronomical observations; maintenance of meteorological records; and wildlife and fisheries surveys.
Information services – all work directed to collecting, coding, analyzing, evaluating, recording, classifying, translating and disseminating scientific and technological information as well as museum services. Included are the operations of scientific and technical libraries, S&T consulting and advisory services, the Patent Office, the publication of scientific journals and monographs, and the organizing of scientific conferences. Grants for the publication of scholarly works are also included.
General purpose information services or information services directed primarily towards the general public are excluded, as are general departmental and public libraries.
Special services and studies – work directed towards the establishment of national and provincial standards for materials, devices, products and processes; the calibration of secondary standards; non-routine quality testing; feasibility studies and demonstration projects.
Sub categories under Special services and studies include:
Testing and standardization – concerns the maintenance of national standards, the calibration of secondary standards and non-routine testing and analysis of materials, components, products, processes, soils, atmosphere, etc. These activities are related scientific activities (RSA). The development of new measures for standards, or of new methods of measuring or testing, is R&D. Exclude routine testing such as monitoring radioactivity levels or soil tests before construction.
Feasibility studies – technical investigations of proposed engineering projects to provide additional information required to reach decisions on implementation. Besides feasibility studies; the related activity of demonstration projects are to be included. Demonstration projects involve the operation of scaled-up versions of a facility or process, or data on factors such as costs, operational characteristics, market demand and public acceptance. Projects called "demonstration projects" but which conform to the definition of R&D should be considered R&D. Once a facility or process is operated primarily to provide a service or to gain revenue, rather than as a demonstration, it should no longer be included with feasibility studies. In all demonstration projects, only the net costs should be considered.
Note: If any of these activities are performed in direct support of an R&D project or program, include the expenditures in the R&D section.
Intramural (in-house) RSA expenditures
Intramural (in-house) RSA expenditures are defined as all expenditures for related scientific activities performed within your organization by your personnel during a specific period, whatever the source of funds.
Administration of extramural RSA programs – the costs, including salaries, of personnel engaged in the administration of contracts and grants for related scientific activities that are to be performed outside the provincial research organizations.
Current expenditures – include expenditures related to wages and salaries of in-house personnel, including salaries and contributions to employee benefit plans (e.g. pension); materials and supplies; contract payments to contractors working on-site within your organization's premises; as well as costs for personnel engaged in the administration of extramural (external) RSA contracts and grants.
Capital expenditures – the annual gross amount paid for the acquisition of fixed assets that are used repeatedly or continuously in the performance of RSA for more than one year. They should be reported in full for the period when they took place, whether acquired or developed in-house, and should not be registered as an element of depreciation.
The most relevant types of assets used for capital expenditures are:
- Land and buildings
- Machinery and equipment
- Capitalized computer software
- Other intellectual property products
Extramural (external) RSA expenditures include:
Contract payments to an outside institution or individual performing RSA.
RSA grants and contributions – awards to organizations or individuals for the conduct of RSA.
2. Source of funds for intramural (in-house) research and development (R&D) in the natural sciences and engineering
This question identifies the sources of funds for expenditures on research and development performed by your organization. It will help to ensure that work funded from outside the provincial research organization is not overlooked.
R&D budget of the provincial research organization (operating capital, and grants and contributions) – that portion of the total provincial research organizational budget which was spent on natural science and engineering R&D activities.
Federal government – all R&D funds from the departments and agencies of the federal government used for natural science and engineering activities.
Provincial/territorial government – all R&D funds from the provincial/territorial government used for natural science and engineering activities.
Canadian business enterprises – all R&D funds from business enterprises used for natural science and engineering activities.
Other Canadian sources – all R&D funds for natural science and engineering activities from sources not specified above for example, higher education, hospitals and private non-profit organizations.
3. Personnel in full-time equivalent (FTE) engaged in scientific and technological activities in the natural sciences and engineering
Full-time equivalent (FTE) – the ratio of working hours actually spent on scientific activities during a specific reference period divided by the total number of hours conventionally worked in the same period by an individual or by a group. For example, an employee who is engaged in scientific activities for half a year has a full-time equivalence of 0.5. Personnel data reported should be consistent with expenditure
Scientific and professional personnel – researchers and professionals engaged in the conception or creation of new knowledge. They conduct research and improve or develop concepts, theories, models, techniques instrumentation, software or operational methods. They require at least one academic degree or nationally recognized professional qualification, as well as those with equivalent experience.
Supporting personnel – technicians and equivalent staff, whose main tasks require technical knowledge and experience in one or more fields of engineering, the physical and life sciences. They perform scientific and technical tasks involving the application of concepts and operational methods and the use of research equipment, normally under the supervision of researchers.
Other personnel – other supporting staff includes skilled and unskilled craftsmen, and administrative, secretarial and clerical staff participating in science and technology projects or directly associated with such projects.
Enquiries should be directed to:
Investment, Science and Technology Division
Statistics Canada, Jean Talon Building, Room 12D
170 Tunney's Pasture Driveway
Ottawa, Ontario K1A 0T6
E-mail: statcan.istdinformation-distinformation.statcan@statcan.gc.ca