Federal government payments to industry for science and technology

The federal government distributed $4.5 billion to business enterprises for scientific and technological activities in the five-year period between 1997/98 and 2001/02.

The bulk of the money, about 71%, went to two sectors. The manufacturing sector obtained $1.8 billion and the services sector received just under $1.4 billion.

Federal government payments were concentrated in five major industries. The aerospace products and parts industry received the largest portion of federal science and technology payments, about $700 million over the five-year period.

The central activity for scientific and technological activities is research and development. In 2001/02, Industry Canada accounted for 51% of research and development payments to business enterprises. The Canadian Space Agency accounted for 16%, and the Defence Department, 12%.

Ontario accounted for 51% of all research and development activity in Canada, with the largest concentration in architectural, engineering and related services and the communications equipment industry. About 83% of research and development payments to the aerospace products and parts industry were concentrated in Quebec.

Definitions, data sources and methods: survey number 4212.

The working paper, Federal Government Payments to Industry, 1997/98 to 2001/02 (88F0006XIE2004012, free) is now available online.

For more information, or to enquire about the methods, concepts or data quality of this release, contact Lloyd Lizotte (613-951-2188; lloyd.lizotte@statcan.gc.ca) or Antoine Rose (613-951-9919; antoine.rose@statcan.gc.ca), Science, Innovation and Electronic Information Division.