"To reach the knowledge performance target of becoming one of the top 5 countries for R&D performance by 2010 we will need at least to double the number of research personnel and foster a "strong management class".³

In addition to concerns related to academic recruitment is the Country's ability to insure that the best young minds are encouraged to enter both undergraduate and graduate programs regardless of their economic status.

In the absence of adequate university operating budgets much of the financial shortfall has been downloaded onto the students in the form of increased tuition costs. While it may be reasonable to expect a student to contribute to her/his education there comes a point where the level of tuition becomes counterproductive. Not all bright and creative minds come from wealthy families. As costs to attend university increase, a drop can be expected in the number of individuals from lower and middle-income families in post secondary institutions. Those who do attend, upon graduation, will have increasingly larger debt loads. Currently, it is not unusual for students to have debts between $ 25- 30,000. This level of financial obligation then creates a deterrent for those creative individuals capable of entering graduate programs/research careers and compels them to consider other career options. Consequently, because of inadequate university operating budgets, and the resultant increase in tuition and other fees, a progressively larger number of capable individuals are disenfranchised from considering additional training in areas that will contribute to Canada's economic well-being.

The figure below documents the average increase in tuition costs during the past 10 years (data kindly provided by the Association for Universities and Community Colleges (AUCC) and Provincial Post Secondary Education Spending (Statistics Canada).

* Source: Data Kindly provided by AUCC ** Source: Calculations based on Statistic Canada, Provincial and Territorial General Government Revenue and Expenditures, Financial Management System Basis

Statistics Canada has documented (see table) a drop in the number of individuals receiving undergraduate qualifications between the years 1994 and 1998. During this same time period a small increase (4.4%) occurred in those earning postgraduate qualifications. These data are of concern given the current requirements for highly qualified personnel. Since 1998 the number of individuals entering undergraduate programs has increased. Unfortunately, the lack of response by provincial governments to financial needs of universities will result in an erosion of the quality of undergraduate education.

Data obtained from Statistics Canada*

The recent census data fail to provide much comfort regarding the availability of university age young people to contribute to Canada's future development. As the birth rate drops fewer individuals will enter post-secondary institutions creating a deficit in our employment needs. To cushion this effect it is important, therefore, that, at present, we remove impediments to ensure that all individuals capable of entering undergraduate and graduate programs are encouraged to do so. This is essential if Canada is to maintain and/or increase the participation rate of eligible individuals. It is vital; therefore, that an arrangement be developed between the Federal and Provincial Governments to arrest the down loading of operating costs of universities onto students. A high priority item should be to improve the ability of post secondary institutions to do their job by addressing their financial requirements.

The Canadian Federal December 2001 budget helped relieve, in part, some of the pressure on university finances by funding a portion of the indirect costs of research. This move will assist universities by compensating them for their contributions made from operating dollars designated for undergraduate programs. What is needed to complete this valuable Federal Government contribution is implementation of an indirect cost program that is transparent and accountable. In spite of this very positive move by the Federal Government, large deficits still exist in postsecondary education budgets. Thus, tuitions are unlikely to decrease. The federal government has a opportunity to attract the best students to pursue graduate education by expanding the ability of granting councils to support training initiatives. These initiatives go a long way towards making our universities more effective in the production of high calibre personnel. However, for this strategy to be successful over the long term a meaningful solution will have to be found, based on cooperation between Federal and Provincial Governments if universities are to function effectively in the production of high calibre personnel.

3. Role of Universities

At a time when our need is greatest there remain obstacles that prevent the Country from developing the human capital it requires. It is interesting to note that, in the US Congress, a bipartisan bill the "Technical Talent" Act has been introduced. During the March 7, 2002 hearings witnesses emphasized the importance of research opportunities for students and their teachers, resources of good quality laboratory equipment and mentoring. At these hearings it was also noted that undergraduate institutions that provide such an environment produce more students that enter graduate programs than those that failed to provide such an environment. With bipartisan support it appears likely that funding for this bill will be forthcoming. Consequently, if we wish Canada's universities to play the role expected of them an improvement of the current learning environment is required.

4. University-Corporate Partnerships

Much of the Federal Government's recent strategy has been directed to obtaining greater involvement by the private sector in investing in research in Canada. The university community has a role to play in this endeavour. Universities can help ensure that novel ideas, arising from university laboratories, are available for commercialization by Canadian companies. In this way the Canadian taxpayer obtains a return on the investment in the research enterprise. While this role is a legitimate one for universities to play there is unease in the academic community that in order to obtain financing, universities are being forced into a process of turning their backs on fundamental studies, which are the foundation of future commercial applications, and being directed to respond to the dictates of the corporate world. The potential danger in this approach is that, in the long run, both of these communities suffer. It is important, therefore, that care be taken to insure that the mandates of both partners are recognized.

At this point it is useful to indicate some of the successes achieved through partnerships between the academic and corporate sectors. A number of programs such as the Networks of Centres of Excellence (NCEs) have resulted in the development of spin-off companies and increased employment. The following are examples:

1. University of British Columbia | 23 companies | 732 employees
2. McGill University | 18 companies | 392 employees
3. University of Ottawa | 10 companies | 459 employees
   

Previous | Page 2 of 3 | Next

3. Ditto- Executive Summary P. 8