MEDIA RELEASE
August 21, 2007	Embargoed 11.30 am (AEST)	91/2007
Business spending on R&D reaches $10.1 billion

Business spending on research and experimental development (R&D) increased for the seventh year in a row in 2005-06, to a total of $10.1 billion, say figures released today by the Australian Bureau of Statistics (ABS).

Businesses in the mining and manufacturing industries reported the largest growth in R&D expenditure, increasing by $417.2 million (33.0%) and $416.5 million (12.0%) respectively. The major contributors to R&D expenditure were the manufacturing ($3.9 billion or 38.6%), property and business services ($1.7 billion or 17.0%), and mining industries ($1.7 billion or 16.7%).

While all states and territories reported increased expenditure on R&D, growth since 2004-05 was strongest in Victoria (up $541.7 million) and Western Australia ($392.7 million).

R&D expenditure in 2005-06 was up 11.8% on the previous year in real terms (and 16.6% in current prices). Between 2004-05 and 2005-06, business expenditure on R&D as a proportion of GDP increased from 0.97% to 1.04%. However, Australia remained below the OECD average of 1.53%.

Businesses with 200 or more employees contributed 66.8% of total R&D expenditure, while those with fewer than five employees contributed 3.5%.

Further information is in Research and Experimental Development, Businesses, Australia, 2005-06 (cat. no. 8104.0).