APPENDIX GROSS EXPENDITURE ON R&D
GROSS EXPENDITURE ON R&D (GERD)
Gross expenditure on R&D (GERD) represents the total expenditure devoted to R&D by the Business, Government, Higher Education and Private Non-Profit sectors. The most recent release of GERD occurred in 2008-09 Research and Experimental Development, Australia, All Sector Summary (cat. no. 8112.0) published in October 2010. This publication has since been ceased, with these data available in the individual R&D sector publications.
GERD and the ratio of GERD to GDP are headline aggregates used by analysts and policy makers, including the OECD for international comparisons. Up until 2008-09, it was possible to produce GERD based on an almost common reference period for all four sectors, every second year.
Changes to the R&D program
Following changes in the work program for R&D statistics within the ABS, and in particular the postponement of the 2010-11 Government and Private Non-Profit collection, it is no longer possible to derive a comparable estimate of GERD in the same manner as has been delivered in the past. As a consequence, the ABS has committed to providing a careful estimate of 2010-11 GERD with this release of the Research and Experimental Development, Businesses publication.
Government and Private Non-Profit expenditure on R&D
A method of estimating or modelling the 'missing' Government and Private Non-Profit sectors has been developed that provides the best estimate of the 2010-11 Government and Private Non-Profit expenditure on R&D. This approach utilises a combination of directly collected information, budget papers and annual reports. The methodology centres around the major contributing organisations from each sector which demonstrate a consistent share of total R&D expenditure over time. Their expenditure for 2010-11 is then extrapolated to represent an estimate for the whole sector. The modelled estimate calculated for the R&D expenditure of the Government and Private Non-Profit sectors was $4,747 million for 2010-11.
GERD 2010-11
Combining the modelled estimate for Government and Private Non-Profit with the Business and Higher Education sectors has produced a 2010-11 estimate of GERD for Australia of $30.8 billion, an increase of $2.5 billion (or 9%) over 2008-09.
GERD, by sector |
|
 | 2000-01 | 2002-03 | 2004-05 | 2006-07 | 2008-09 | 2010-11 |
| $m | $m | $m | $m | $m | $m |
|
| Business | 4 983 | 6 940 | 8 676 | 12 639 | r17 291 | 17 880 |
| Government | 2 356 | 2 482 | 2 486 | 3 095 | 3 420 | (a)3 833 |
| Higher education | 2 790 | 3 430 | 4 327 | 5 434 | r6 844 | 8 203 |
| Private non-profit | 289 | 360 | 479 | 609 | 744 | (a)914 |
| Total | 10 417 | 13 212 | 15 969 | 21 777 | 28 299 | (a)30 830 |
|
| r revised |
| (a) These estimates have been carefully modelled. |
Following large increases over the last ten years, the rate of growth of GERD has slowed between 2008-09 and 2010-11.
Gross expenditure on R&D
GERD and Gross Domestic Product (GDP)
GERD as a proportion of GDP fell slightly, down from 2.25% in 2008-09 to 2.22% in 2010-11. This was due to the slower rate of growth of BERD over the period, compared to the rate of growth of GDP.
GERD, as a proportion of GDP
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