Measuring the economic impact of publicly funded research in Northern Canada

Abstract

This paper provides the first empirical estimate of the local economic impact of publicly funded research expenditures in the Yukon, Nunavut, and Northwest Territories of Canada between 2000 and 2009. The total dollar expenditures of northern research during this period was estimated to be $284 million and peaked in 2009 at close to $110 million. Using data acquired from major granting agencies in Canada and Statistics Canada multipliers, the economic impact of northern research on local income, Gross Domestic Product (GDP), and employment impacts were estimated. It was determined that at its peak, northern research impacted the territorial GDP by 0.04%, income by 0.09% and employment by 0.11%. While the total economic impact of publicly funded research expendituers may be small relative to other northern industries, individual communities where the field research is conducted, may experience significant income, employment and other intangible benefits. The community of Old Crow is used to illustrate the potential community-level importance of local expenditures associated with northern research.

Acknowledgements

This research was made possible by funding support from the Social Science and Humanities Research Council of Canada, Project Number 820-2008-4004. We gratefully acknowledge the support offered by Mary Ellen Thomas, Andrew Applejohn, Clint Sawicki, and Valerie Walker for their help in completing this research. We would also like to thank the two anonymous reviewers for their thoughtful and well-informed comments and suggestions. Last, we would like to thank all those northern researchers who allowed their research budget justifications to be shared for this analysis.

Notes

1. Statistics Canada Table 281-0027 (http://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=2810027).

2. Statistics Canada Table 281-0024 (http://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=2810024).