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1377.0 - Measures of a knowledge-based economy and society, Australia, 2003  
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Contents >> Innovation and Entrepreneurship Indicators >> Expenditure on applied research and experimental development by sector of performance

CHARACTERISTIC: KNOWLEDGE CREATION WITH THE PURPOSE OF COMMERCIAL POTENTIAL

INDICATOR: Expenditure on applied research and experimental development by sector of performance

In 2002-03, the Business sector accounted for 35% ($1,540m) of expenditure on Applied research and 85% ($4,040m) of expenditure on Experimental development activity and was the main contributor to each of these activities.


APPLIED RESEARCH AND EXPERIMENTAL DEVELOPMENT EXPENDITURE BY SECTOR

2000-01
2002-03
Applied research
$'000
$'000

Business
1,187,419
1,540,457
Government
Commonwealth
604,288
689,375
State/territory
679,077
648,877
Higher education
1,072,762
1,390,706
Private non-profit
67,658
109,485

Total
3,611,204
4,378,899

Experimental development
$'000
$'000

Business
3,468,665
4,039,756
Government
Commonwealth
300,340
271,895
State/territory
111,866
117,281
Higher education
213,477
260,725
Private non-profit
22,745
37,216

Total
4,117,094
4,726,873

Source: ABS Research and Experimental Development, All Sector Summary, Australia ( cat. no. 8112.0).


STATISTICAL NOTES

The Australian Standard Research Classification
The Australian Standard Research Classification (ASRC) is the collective name for a set of three related classifications developed for use in the measurement and analysis of research and experimental development (R&D) undertaken in Australia, both in the public and private sectors.

R&D
R&D is defined in accordance with the Organisation for Economic Co-operation and Development (OECD) standard as comprising 'creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications'.

R&D activity
Type of R&D activity comprises pure basic research, strategic basic research, applied research and experimental development. Data in this classification are subjectively allocated by respondents at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Analysts using this classification should bear the original subjectivity in mind. For a more comprehensive interpretation of the definition of R&D activity, contact the ABS or refer to the OECD publication The Measurement of Scientific and Technical Activities (Frascati Manual 2002), OECD, Paris, 2003.

Applied research
Original work undertaken in order to acquire new knowledge with a specific application in view. It is undertaken either to determine possible uses for the findings of basic research or to determine new methods or ways of achieving some specific and predetermined objectives.

Experimental development
Systematic work, using existing knowledge gained from research or practical experience, for the purpose of creating new or improved products/processes.

R&D surveys
The R&D Business survey is conducted annually and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by businesses in Australia.
The R&D Higher Education survey is conducted biennially and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by higher education organisations in Australia.
The R&D General government survey is conducted biennially and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by government organisations in Australia.
The R&D Private non-profit sector survey is conducted biennially and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by private non-profit organisations in Australia.

Sectors:
The sector classification used in the compilation of R&D statistics is adapted from the guidelines specified by the OECD for use in the conduct of R&D surveys.

Business sector
This sector includes all businesses whose primary activity is the production of goods or services for sale to the general public at a price intended to cover at least the cost of production, and the private non-profit institutions mainly serving them. The Business sector for the R&D survey excludes businesses mainly engaged in Agriculture, forestry, and fishing (i.e. industries in Division A of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (cat. no. 1292.0)), partly because of collection difficulties and partly because such businesses are believed to have very low R&D activity (agricultural R&D activity is generally carried out by specialised research institutes not included in ANZSIC Division A).

Government sector
This sector includes all Commonwealth, state and local government departments and authorities. The Government sector for the R&D survey excludes local government organisations because it is considered that their contribution to total R&D activity would be minimal. Public sector organisations mainly engaged in higher education (e.g. universities) are included in the Higher education sector whilst those mainly engaged in trading or financial activities are included in the Business sector.

Higher education sector
This sector includes all universities and other institutions of post-secondary education whatever their source of finance or legal status. The Higher education sector for the R&D survey excludes non-university post-secondary education institutions (e.g. Technical and Further Education colleges) because it is considered that their contribution to total R&D activity would be minimal.

Private non-profit sector
This sector includes private or semi-public incorporated organisations which are established with the intention of operating without making a profit.


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