Thank you, Mr. Chair and my fellow Canadian colleagues.
First, the University of Saskatchewan wishes to thank the finance committee for this opportunity to present as part of their pre-budget consultations for 2011.
Perhaps you might let me start by saying that Canadian universities have a significant impact on Canada's innovation agenda and its ability to compete in the global economy. Universities are a $30 billion enterprise, which is comparable with the Canadian utilities sector and larger than the primary and fabricated metals or transportation sectors. So in short, universities' success is Canada's success.
As one of Canada's 15 medical doctoral research-intensive universities, we were extremely pleased to be able to provide three recommendations in our written submission to committee members.
Recommendation one is to invest in programs that support the ability of students, be they domestic or from across the globe, to obtain an affordable high-quality and relevant university education in Canada, with particular attention to recruiting aboriginal students and ensuring their success. The committee might be interested in a few quick statistics and facts that support the context for this particular recommendation. University graduates typically earn over $1 million more than those without post-secondary or college certificates. Higher incomes and academic accomplishments mean increased social and economic sustainability.
The Centre for Study of Living Standards estimates that closing the educational gap between aboriginals and non-aboriginals by 2026 would lead to income increases of $36.5 billion, government revenues of $4 billion, and a decline in government expenditures of approximately $14.2 billion. Additionally, international students contribute $6.5 billion to Canada's economy annually, and by 2030 the number of people in Canada over 64 years of age will double with little growth in the number of working-age people.
I'll go on to recommendation two. Continue to invest in Canada's major university research programs through Tri-Council, the Canada Foundation for Innovation, and other federal department and agency research funding programs. Expand the Canada excellence research chairs program to include additional sectors that are critical to Canada's economic future and raise indirect costs support for university research to levels that are more comparable to those of other developed countries.
Currently, the federal government spends $3 billion annually on R and D, but investment as a percentage of GDP has decreased while most of our world's innovating countries and nations have increased R and D support. We are also low when we look at supporting the indirect costs of research, and I'd draw your attention to a couple of quick statistics. Our current support is just over 23%. Compare that with the U.S., the U.K., and our Australian counterparts, where it ranges from 40% to 60%. So to be internationally competitive, Canada must increase or at least maintain our current levels of R and D funding and raise indirect costs support for university research to levels that are more comparable.
The last recommendation is to invest both financially and strategically in programs that enhance efforts to transform university research into commercial products and services and supports. Specifically, support development and funding of best practice technology transfer offices and fund more internships and fellowships with a commercial focus.
Canada does high-quality research, but this doesn't necessarily translate into knowledge transfer or commercialization. I think we have a collective role here. Governments can increase productivity by reducing administrative barriers and focusing on how best to support early stage high technology. We at the university can help by removing cultural barriers to commercialization, improving and simplifying technology transfer processes, and building better strategic partnerships with industry.
We need to look at things like providing early stage funding for university start-ups, pre-seed for continuing development of commercial applications of technology, or through internships, fellowships, and I just thought you'd be--