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1301.0 - Year Book Australia, 2004  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 27/02/2004   
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Contents >> Manufacturing >> Research and development expenditure

Research and experimental development (R&D) activity, in the business context, is defined as systematic investigation or experimentation involving innovation or technical risk, the outcome of which is new knowledge, with or without a specific practical application or new or improved products, processes, materials, devices or services. R&D activity also extends to modifications to existing products and processes.

As table 18.27 shows, R&D expenditure within the manufacturing industry increased by $213m (10%) in 2001-02. Industries contributing the most to manufacturing R&D expenditure in 2001-02 were: motor vehicle and part and other transport equipment manufacturing (23%); petroleum, coal, chemical and associated product manufacturing (17%); and electronic and electrical equipment and appliance manufacturing (17%). Together, these industries accounted for 57% of total R&D expenditure of the manufacturing industry, and 25% of the total R&D expenditure for all industries.

18.27 EXPENDITURE ON RESEARCH AND DEVELOPMENT

1999-2000
2000-01
2001-02
Industry subdivision
$m
$m
$m

Food, beverage and tobacco manufacturing
184
202
214
Textile, clothing, footwear and leather manufacturing
18
27
22
Wood and paper product manufacturing
103
100
82
Printing, publishing and recorded media
15
17
16
Petroleum, coal, chemical and associated product manufacturing
370
387
417
Non-metallic mineral product manufacturing
47
41
76
Metal product manufacturing
227
200
235
Motor vehicle and part and other transport equipment manufacturing
410
473
553
Photographic and scientific equipment manufacturing
127
184
230
Electronic and electrical equipment and appliance manufacturing
375
430
412
Industrial machinery and equipment manufacturing
101
108
128
Other manufacturing
19
21
18
Total
1,996
2,190
2,403

Source: Research and Experimental Development, Businesses, Australia (8104.0).

Table 18.28 shows that, of the manufacturing industry's total R&D expenditure for 2001-02, 9% was on capital expenditure, 45% on labour costs and 46% on other current expenditure. The motor vehicle and part and other transport equipment manufacturing industry contributed the largest expenditure on R&D for the manufacturing industry in terms of capital expenditure (19%), labour costs (24%), and other current expenditure (23%). Manufacturing accounted for 53% of the capital expenditure, 45% of the labour costs, and 40% of other current expenditure on R&D for all industries.

18.28 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2001–02

Capital expenditure
Labour costs(a)
Other current expenditure
Total
Industry subdivision
$m
$m
$m
$m

Food, beverage and tobacco manufacturing
20.0
104.7
89.6
214.2
Textile, clothing, footwear and leather manufacturing
3.8
9.4
9.3
22.4
Wood and paper product manufacturing
3.9
25.3
52.9
82.0
Printing, publishing and recorded media
0.9
8.3
6.9
16.2
Petroleum, coal, chemical and associated product manufacturing
24.7
175.8
216.2
416.6
Non-metallic mineral product manufacturing
22.1
20.3
33.6
76.0
Metal product manufacturing
34.9
80.6
119.6
235.1
Motor vehicle and part and other transport equipment manufacturing
40.4
254.6
257.7
552.7
Photographic and scientific equipment manufacturing
14.3
113.6
102.2
230.2
Electronic and electrical equipment and appliance manufacturing
33.9
213.7
164.0
411.5
Industrial machinery and equipment manufacturing
14.5
62.9
50.8
128.2
Other manufacturing
2.8
9.0
5.8
17.6
Total
216.1
1,078.2
1,108.4
2,402.7

(a) Includes wages and salaries, payroll tax, payments to contract staff on the payroll, fringe benefits tax and workers’ compensation, holiday pay, long service leave payments, sick pay, and employer contributions to superannuation and pension schemes.
Source: Research and Experimental Development, Businesses, Australia, 2001-02 (8104.0).

In 2001-02, R&D expenditure in the manufacturing industry in Victoria and New South Wales accounted for 40% and 33% respectively. In Victoria, R&D expenditure in the manufacturing industry made up 54% of the total expenditure by all industries on research and development, which is higher than the 43% manufacturing industry contribution to R&D expenditure for all states (table 18.29).

Motor vehicle and part and other transport equipment manufacturing R&D expenditure in Victoria was $409m, or 74% of the total for 2001-02. New South Wales accounted for 48% ($197.0m) of the total R&D expenditure in the electronic and electrical equipment manufacturing industry.

Science and innovation discusses expenditure on and human resources devoted to R&D activity for all sectors of the economy.

18.29 LOCATION OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2001–02

NSW
Vic.
Qld
SA
WA
Other states and territories
Overseas
Total
Industry subdivision
$m
$m
$m
$m
$m
$m
$m
$m

Food, beverage and tobacco manufacturing
81.1
74.8
28.4
13.4
9.3
5.5
1.8
214.2
Textile, clothing, footwear and leather manufacturing
3.7
13.0
n.p.
n.p.
3.9
n.p.
-
22.4
Wood and paper product manufacturing
9.1
56.4
5.1
5.4
2.3
n.p.
n.p.
82.0
Printing, publishing and recorded media
9.5
3.3
n.p.
0.4
1.2
n.p.
-
16.2
Petroleum, coal, chemical and associated product manufacturing
131.5
172.6
55.9
25.9
17.5
8.5
4.9
416.6
Non-metallic mineral product manufacturing
51.5
7.6
12.7
1.2
2.3
n.p.
n.p.
76.0
Metal product manufacturing
97.1
28.9
32.8
5.3
68.6
n.p.
n.p.
235.1
Motor vehicle and part and other transport equipment manufacturing
64.3
409.0
9.5
58.8
9.2
1.2
0.7
552.7
Photographic and scientific equipment manufacturing
108.2
64.9
13.3
18.9
11.3
n.p.
n.p.
230.2
Electronic and electrical equipment and appliance manufacturing
197.0
111.6
32.5
23.4
38.7
8.0
0.3
411.5
Industrial machinery and equipment manufacturing
42.1
26.5
27.0
8.6
15.5
8.1
0.4
128.2
Other manufacturing
5.1
4.0
4.9
2.2
1.2
n.p.
n.p.
17.6
Total
800.2
972.5
224.9
n.p.
180.9
38.6
n.p.
2,402.7

Source: Research and Experimental Development, Businesses, Australia, 2001-02 (8104.0).


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