If the discussion is about the quality and quantity of research undertaken than comparisons with American Ivy League institutions is entirely relevant. Many of them are the pre-eminent research focused institutions of the US. And they often hold that status because of their ability to raise funds privately. Of course government funding is important but it's not the whole story. It is those endowments which attract the best and the brightest (students, profs and researchers). By contrast, government funding often supplements their activities by directing their efforts towards more focused research projects (as opposed to following their own academic interests) while they continue to pursue wider interests funded by the institution.
Then there's the multitude of agencies that fund research in the US. As one example, let's not forget that a massive portion of academic research in the US is also funded by the US DOD. DRDC by contrast barely engages with Canadian universities.
Finally, the cornerstone of American technical prowess is the corporate R&D sector....Microsoft, IBM, Xerox, Rand, etc. The strong support for corporate R&D is what makes a definitive difference in the relative strengths of American R&D vis-a-vis the rest of the world.
All this is relevant when shrill scaremongering comes into effect about the state of our R&D sector without talking about our societal lack of interest in supporting academic research. It's quite extreme to translate the non-announcement of continued funding for one project well beyond it's already funded mandate in a budget bill concerning the next fiscal year to "Harper Eliminates Funding for Big Science". Where was the concern when the Liberals made large cuts to NSERC in '94? And that was a cut of 5%, 9.8% and 14% over three years, far more drastic cut than what today's Conservative government has put forward. Did anyone cry then that Jean and Paul were axing off scientists?
These are tough times. Revenue is scarce. I expect any government in power to use money wisely and to use it immediately. Committing funds for a program to use well beyond the next fiscal year so it can sit in a bank account now and make the relevant program director feel important is not my idea of a wise use of money. Put that money to work building infrastructure, providing EI, paying for worker retraining.
Had they cut funding for Genome Canada at the height of the surpluses, that would be a different story. As it stands, this is a non-story.