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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
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| 1999-2000 | 2000-01 | 2001-02 |
Industry subdivision | $m | $m | $m |
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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 |
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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
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| Capital expenditure | Labour costs(a) | Other current expenditure | Total |
Industry subdivision | $m | $m | $m | $m |
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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 |
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(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. |
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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
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| NSW | Vic. | Qld | SA | WA | Other states and territories | Overseas | Total |
Industry subdivision | $m | $m | $m | $m | $m | $m | $m | $m |
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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 |
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Source: Research and Experimental Development, Businesses, Australia, 2001-02 (8104.0). |
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