C ONTEXT The importance of post-secondary education in providing - PDF document

Submission to the Legislative Assembly of British Columbia Select Standing Committee on Finance and Government Services September 18, 2014 _________________________________________________________________________________ C ONTEXT The importance of post-secondary education in providing benefits both to individuals and to society is well understood. The purpose of this submission to the Select Standing Committee on Finance and Government Services is to focus on the importance of university education from an economic perspective; and specifically, how British Columbia’s research universities are world-leading engines of growth and are critical to the provincial economy. In British Columbia’s small, open economy, the ability to develop and apply new knowledge and develop a skilled workforce is crucial. Graduates from British Columbia’s research universities contribute to communities throughout the province. Today, alumni hold key positions in every sector of British Columbia’s increasingly complex, globally connected and constantly changing economy. University graduates on average have higher annual earnings and employment rates, are more resilient during an economic downturn and, in fact, are instrumental in economic recovery. Drivers of change, new ideas and efficiencies, this pool of talent must be sustained to fully realize the province’s potential. Research universities fully appreciate British Columbia’s fiscal circumstances and the need to maintain fiscal discipline, and have undertaken significant initiatives to achieve efficiencies, diversify revenue sources, and reduce program spending. However, universities are facing pressures that are placing them in a position where there is a real risk of a negative impact on the quality and accessibility of programs and services for students. This problem is particularly acute at a time when the needs of the labour market are so great. BC’s Skills for Jobs Blueprint provides a framework for how university degrees directly intersect with the provincial economy. The Province’s forecast for liquefied natural gas (LNG), for example, shows direct, indirect and induced jobs as a result of fully developing this resource. In comparing this forecast to Statistics Canada analysis on industry sector labour needs, it is clear there are impending labour market shortages across all jurisdictions. It is also clear that the province requires a comprehensive range of talent. Alongside the skilled trades needed to construct and operate LNG plants, the province will need a deep and wide pool of university

graduates in fields such as business, engineering, project planning, law, and accounting, as well as from sciences and humanities, to operationalize this and other initiatives for diversified economic growth. In June 2013, the Honourable Amrik Virk, Minister of Advanced Education, received a mandate letter from Premier Christy Clark setting out the Government's expectations for post-secondary education in British Columbia. The following illustrates how British Columbia’s research universities are meeting and exceeding these expectations. Minister’s Mandate Letter: C OMMITMENT TO A S TRONG E CONOMY ECONOMIC IM�ACT T�e t�ta� ann�a� e��n� i� i !a�t �" t�e resear�� �ni#ersities �n t�e !r�#in�ia� e��n� $ is %&'() *i��i�n( Direct Spending Impact of research (salaries, benefits on productivity and etc.), $4.3 billion, efficiency, $7.9 20% billion, 38% Student Spending (rent, food etc.), $1.4 billion, 7% Effect of Alumni Higher Earnings on Visitor Spending the Marketplace, (parents, conferences, $6.7 billion, 32% etc.), $680 million, 3% Direct spending includes spending by the university, students and visitors, and the resulting re-spending (multiplier) in the economy. The impact of alumni reflects that earnings of university graduates are substantially higher than other citizens. The impact of research on productivity and efficiency reflects the benefit the private sector derives from university graduates and how those graduates take their skills and knowledge to the marketplace. 2

Appendix I contains examples of how British Columbia’s research universities are connecting with communities to advance economic growth and job creation across British Columbia. (Advanced Cood Processing, Innovation Boulevard, Vancouver Island Technology Park, Prince George Bioenergy Plant, Damloops Innovation, and ResourceE) ATTRACTING +,N-S TO .C T�ta� S!�ns�red Resear�� / %0)1 i��i�n in .ritis� C��� *ia in &)'&2'3 $500 $437 $450 $400 54% $350 $300 $264 $250 33% $200 $150 $109 $100 13% $50 $0 Federal (NSERC, Not-for-profits, Provincial (BCDDF, SSHRC, CIHR, CFI, business, foreign, Ministries etc.) etc.) other In 2012F13, a total of $809 million in research funding came from the federal government (G4%), non-profit government sources (34%), and the Province (11%). Hf this $800 million, $700 million came from outside the province. Competition for funding is intense; it could have gone elsewhere in Canada, but it came to British Columbia. British Columbia outpaced other provinces by increasing federal granting agency funding by 1G2% between 2000F01 and 2011F12 - a rate greater than Hntario, Iuebec and Alberta and the Canadian average. .RITIS4 COL,M.IA 5NO6LE-GE -E7ELO�MENT +,N- 8.C5-+9 Attra�ted in#est ent �" �#er %:1) i��i�n int� .ritis� C��� *ia sin�e &))' The Province's investment of $426 Awards from 2001 Forward (Total million in the BCDDF has leveraged $1.22 billion) over $790 million in direct $461 $426 500 matching from the Federal $329 400 government ($461 million) and 300 from private and other sources 200 ($329 million). 100 0 Canada BC Dnowledge Hther Sources Foundation for Devlopment Fund Innovation (CFI) (BCDDF) 3

IM�ACT ON T4E ECONOMY 6�at d�es .C5-+ !r�#ide "�r .ritis� C��� *ia's e��n� $? Research in British Columbia’s universities has been instrumental in driving innovation in resource industries such as mining and forestry, and in new industries such as digital media and life sciences. It has contributed to advancing new technologies and treatments in health care and in protecting our environment. Examples of BCDDF funded research include: � 4D LABS at Simon Fraser University is an applications and science-driven research institute that supports next generation technologies in clean energy, health care, information technology, environment and agriculture. Businesses such as Cooledge Lighting, Photon Control and Iuantum Solar Power have all used 4D LABS to advance product development. � � The Centre for Drug Research and Development (CDRD) located at The University of British Columbia addresses the commercialization gap between fundamental research and economic and health gains with results: 44 technologies advanced to commercialization; 6 technologies were out-licensed to the private sector or optioned; 33 new patent families supported; and over $40 million in international pharmaceutical investment attracted. � � The nanoplasmonics research laboratory at the University of Victoria is working with Biomark Technologies on early detection of cancers. Students and researchers from this laboratory have moved to private sector firms, including Lumerical, Carmanah, Redlen Technologies, Accelerware, TIR Systems, Starfish Medical, Schneider Electric and 3M. � � At the University of Northern British Columbia, research on the interactions between the groups of species involved in mountain pine beetle infestations has improved predictive models of spread, and contributed to the development of new models. � � At Royal Roads University, marine geologists are studying the coastal marine sediment records of hazardous events such as earthquakes, tsunamis and slope failures for advances in fisheries and risk assessment of natural hazards. � � The Community and Ecosystem Ecology Centre at Thompson Rivers University focuses on threatened wetland and grassland ecosystems and conservation and restoration strategies, bringing together botanists, zoologists, geographers, geologists, mathematicians and economists. � 4

Minister’s Mandate Letter: M ATC4ING S 5ILLS N EE-E- TO S 5ILLS G RA-,ATING ,NI7ERSITIES MEET ST,-ENT -EMAN- AN- LA.O,R MAR5ET NEE- British Columbia’s research universities are highly responsive to student demand for programs and students are getting jobs in the Province’s labour market. From 2006 to 2013, the largest program percentage increases were in health professions (46.G%), business (34.3%), and engineering and computer sciences (34.0%). Decreases occurred in arts and humanities (-18.3%) and education (-0.6%). � Resear�� ,ni#ersit$ �r�gra �r�"i�e Grad�ate and ,ndergrad�ate -egrees Awarded &))6 &)'3 # C�ange % C�ange Health professions 1,397 2,046 649 46.G% Business and management 2,727 3,662 93G 34.3% Engineering and computer science 1,840 2,46G 62G 34.0% Social sciences 4,768 G,6G9 891 18.7% Life and physical sciences 2,93G 3,438 G03 17.1% Arts and humanities 3,372 2,7GG -617 -18.3% Education 2,404 2,390 -14 -0.6% T�ta� '1,443 &&,4'5 &,1:& '5(3% University graduates, on average, are less likely to be unemployed, have higher annual earnings, have lower rates of absenteeism, have higher pension earnings, and are more resilient during an economic downturn. They also pay much more than the total cost of their education through income taxes over their lifetime earnings. G