State of the Nation 2014

Canada's Science, Technology and Innovation System: Canada's Innovation Challenges and Opportunities

Annex 1: Introduction – setting the stage

Summary and Comparison of Indicators

Summary and Comparison of Indicators - Chapter 2: An Innovative Private Sector
Indicators Value % of the Top 5 Threshold Rank
Baseline Data
(2006 unless otherwise noted)
State of the Nation 2014 (2012 unless otherwise noted) Baseline Data (2006 unless otherwise noted) State of the Nation 2014 (2012 unless otherwise noted) Baseline Data (2006 unless otherwise noted) State of the Nation 2014 (2012 unless otherwise noted)
Chapter 2: An innovative private sector
Business Investment in Research and Development (R&D) and Other Knowledge Assets
Business enterprise expenditures on research and development as a share of GDP (BERD intensity) 1.11% of GDP 0.82% of GDP (2013) 48% 36% (2013) 18th of 41 countries 26th of 41 countries (2013)
Information and communications technologies investment as a share of GDP (ICT investment intensity) no data 2.2% of GDP (2013) no data 71% (2013) no data 13th of 30 countries (2013) no data
S&T-related occupations as a share of total employment no data 30% of total employment (2011) no data 78% (2011) no data 22nd of 43 countries (2011) no data
Business enterprise researchers per thousand employment in industry 6.9 per 100,000 population 6.6 per 100,000 population 85% 66% 7th of 33 countries 15th of 33 countries
Funding Environment for Business Innovation
Overall government funding for business R&D as a share of GDP 0.24% of GDP (2008) 0.21% of GDP (2013) 115% (2008) 66% (2013) 2nd of 30 countries (2008) 10th of 37 countries (2013)
Direct federal funding as a share of GDP 0.02% of GDP (2008) 0.03% of GDP (2013) 19% (2008) 17% (2013) 27th of 30 countries (2008) 28th of 37 countries (2013)
Indirect federal funding as a share of GDP 0.22% of GDP (2008) 0.18% of GDP (2013) 240% (2008) 113% (2013) 1st of 30 countries (2008) 4th of 35 countries (2013)
Venture capital investment as a share of GDP no data 0.08% of GDP (2014) no data 134% (2014) no data 3rd of 32 countries (2014) no data
Introduction of Product and Process Innovations
Firms introduced a product innovation 35% (2007–2009) 35% (2010–2012) no data no data no data no data
Firms introduced a process innovation 34% (2007–2009) 29% (2010–2012) no data no data no data no data
Share of SMEs introducing a product or process innovation no data 53% (2010–2012) no data 112% (2010–2012) no data 4th of 35 countries (2010–2012) no data
Share of large firms introducing a product or process innovation no data 65% (2010–2012) no data 85% (2010–2012) no data 19th of 35 countries (2010– 2012) no data
Canada's Innovation Performance and Global Competitiveness
Multifactor productivity (MFP) growth, average annual change no data 0.6% (1995–2013) no data 60% (1995–2013) no data 12th of 19 countries (1995–2013) no data
Export market share in globally R&D intensive industries no data no data no data no data no data no data no data
Pharmaceutical
industry
1.51% of market share 1.08% of market share (2013) 19% 15% (2013) 15th of 41 countries 17th of 41 countries (2013)
Computer,
electronic and
optical industry
1.02% of market share 0.62% of market share (2013) 16% 12% (2013) 15th of 41 countries 19th of 41 countries (2013)
Aerospace
industry
4.77% of market share 3.48% of market share (2013) 100% 100% (2013) 5th of 41 countries 5th of 41 countries (2013)
Summary and Comparison of Indicators - Chapter 3: High-Quality Knowledge
Indicators Value % of the Top 5 Threshold Rank
Baseline Data
(2006 unless otherwise noted)
State of the Nation 2014 (2012 unless otherwise noted) Baseline Data (2006 unless otherwise noted) State of the Nation 2014 (2012 unless otherwise noted) Baseline Data (2006 unless otherwise noted) State of the Nation 2014 (2012 unless otherwise noted)  
Chapter 3: High-quality knowledge
Investments in Knowledge Production
Gross domestic expenditures on R&D as a share of GDP (GERD intensity) 1.96% of GDP 1.62% of GDP (2013) 67% 49% (2013) 16th of 41 countries 24th of 41 countries (2013)
Higher education expenditures on R&D as a share of GDP (HERD intensity) 0.65% of GDP 0.65% of GDP (2013) 105% 88% (2013) 3rd of 41 countries 8th of 41 countries (2013)
Competitiveness of Research and Higher Education Institutions
Relative impact index 1.01 (2002) 1.1 93% (2002) 87% 8th of 30 countries (2002) 9th of 30 countries
Most highly cited researchers no data 96 highly cited researchers (2014) no data 93% no data 6th of 15 countries (2014) no data
Knowledge Transfer
Share of Canadian university researchers' publications that were co-authored 20.4% (2004) 24.2% (2013) no data no data no data no data
Licences created per higher education institution 16.9 per institution (2007) 16.3 per institution (2013) no data no data no data no data
Summary and Comparison of Indicators - Chapter 4: Talented people
Indicators Value % of the Top 5 Threshold Rank
Baseline Data
(2006 unless otherwise noted)
State of the Nation 2014 (2012 unless otherwise noted) Baseline Data (2006 unless otherwise noted) State of the Nation 2014 (2012 unless otherwise noted) Baseline Data (2006 unless otherwise noted) State of the Nation 2014 (2012 unless otherwise noted)
Chapter 4: Talented people
Talent with the Right Knowledge and Skills
Number of doctoral degrees granted in science and engineering per 100,000 population 4.6 per 100,000 population 9.6 per 100,000 population 41% 69% 19th of 23 countries 17th of 28 countries
Share of female Canadian science and engineering PhD graduates 27.2% 32.9% 69% 72% 21st of 23 countries 20th of 28 countries
University (Tertiary-A) degrees granted in health, engineering, science and business per 100,000 population 285.7 per 100,000 population 305.8 per 100,000 population 69% 61% 14th of 27 countries 16th of 27 countries
Health 54 per 100,000 population 63.9 per 100,000 population 49% 47% 16th of 27 countries 17th of 27 countries
Engineering 40.8 per 100,000 population 36.1 per 100,000 population 66% 43% 11th of 27 countries 20th of 27 countries
Science 64.8 per 100,000 population 78.9 per 100,000 population 78% 82% 7th of 27 countries 9th of 27 countries
Business 126.1 per 100,000 population 126.9 per 100,000 population 63% 58% 9th of 27 countries 17th of 27 countries
College (Tertiary-B) degrees granted in business, engineering, science and health per 100,000 population 268 per 100,000 population (2008) 178.4 per 100,000 population 168% (2008) 100% 2nd of 19 countries (2008) 5th of 19 countries
Business 121.4 per 100,000 population (2008) 98.6 per 100,000 population 170% (2008) 110% 2nd of 19 countries (2008) 4th of 19 countries
Engineering 54.5 per 100,000 population (2008) 27.4 per 100,000 population 180% (2008) 90% 2nd of 19 countries (2008) 6th of 19 countries
Science 25.1 per 100,000 population (2008) 14.9 per 100,000 population 120% (2008) 100% 3rd of 19 countries (2008) 5th of 19 countries
Health 67 per 100,000 population (2008) 37.5 per 100,000 population 130% (2008) 80% 1st of 19 countries (2008) 6th of 19 countries
Programme for the International Assessment of Adult Competencies (PIAAC) no data no data no data no data no data no data no data
Literacy no data no data no data 98% no data 10th (2013) of 20 countries no data
Numeracy no data no data no data 95% no data 13th (2013) of 20 countries no data
Problem
solving
no data no data no data 95% no data 7th (2013) of 20 countries no data
A Strong Educational Foundation
Programme for International Student Assessment (PISA) no data no data no data no data no data no data no data
Reading 524 (2009) 523 99.6% (2009) 97.6% 6th of 74 countries (2009) 8th of 65 countries
Math 527 (2009) 518 97% (2009) 93.5% 10th of 74 countries (2009) 13th of 65 countries
Science 529 (2009) 525 98% (2009) 96% 8th of 74 countries (2009) 9th of 65 countries
Globally Connected Talent
Share of international students at Canadian universities and colleges 7.7% (2007) 8.2% 100% (2007) 53% 5th of 16 countries (2007) 7th of 22 countries
Share of international co-publications of Canada's total publications 42.1% 45.2% 102% 79% 4th of 30 countries 12th of 30 countries

Concepts and Methodology

Defining Innovation

Based on the Organisation for Economic Co-operation and Development's (OECD's) Frascati Manual (2002) and Oslo Manual (2005), the Science, Technology and Innovation Council (STIC) has defined innovation throughout the State of the Nation reports as the process by which individuals, firms and organizations develop, master and use new products, designs, processes and business methods. These can be new to them, if not their sector, their country or the world. Innovation activities include research and development (R&D), invention, capital investment, and training and development.

Innovation may involve gradual changes to existing products, processes or organizations, or it may entail radically new technologies or ways of doing things. While the latter are easier to identify and count, the former can have as great an impact or greater over time on individual firms and the overall economy. The essential ingredient is that something new or improved is introduced to an organization or directly to the marketplace.

Methodology

The indicators examined in this report draw from a number of official statistical sources, notably Statistics Canada and the OECD. Where data from these official sources were not available, private- and non-profit-sector sources were used. As there is typically a two-year time lag in data from official sources, many of the data used in this report are for 2012 and 2013.

Consistent with statistical conventions, data reported in previous editions of State of the Nation have been updated in cases where final data have been released to replace original estimates. In international comparisons, when statistics were not available for a particular country for the year(s) used in the analysis, the most recent data available for that country were used instead, rather than omitting the country from the comparison.

A number of indicators used in this report are expressed as a percentage of the size of each country's economy, i.e., gross domestic product (GDP). This is a commonly used and accepted international convention, and it allows comparison of science, technology and innovation indicators across countries of different economic sizes. As with many measures, these ratios could be influenced by changes either in the indicator itself or in the country's GDP. Nevertheless, all other things being equal, such considerations do not materially affect Canada's international rankings on these indicators.

All data are in current Canadian dollars unless otherwise noted.