GOVERNMENT RESEARCH AND EXPERIMENTAL DEVELOPMENT (R&D)


GOVERNMENT RESOURCES DEVOTED TO RESEARCH AND EXPERIMENTAL DEVELOPMENT (R&D)

During the 2012-13 financial year, expenditure on R&D performed by Australian government organisations was $3,725 million. Human resources devoted to R&D by these organisations totalled 16,381 person years of effort (PYE).

GOVERNMENT RESOURCES DEVOTED TO R&D
			2002-03	2004-05	2006-07	2008-09	2011-12(a)	2012-13
Expenditure on R&D - Current prices
	Commonwealth	$m	1 531	1 544	2 046	2 252	r2 426	2 345
	State/territory	$m	951	942	1 049	1 169	r1 123	1 381
	Total(b)	$m	2 482	2 486	3 095	3 420	r3 549	3 725
Expenditure on R&D - Chain volume measures(c)
	Commonwealth	$m	2 211	1 941	2 384	2 473	2 426	2 273
	State/territory	$m	1 373	1 184	1 223	1 283	1 123	1 339
	Total(b)	$m	3 585	3 125	3 607	3 756	3 549	3 612
Human resources devoted to R&D
	Commonwealth	PYE	10 185	9 368	9 481	9 209	r9 800	9 820
	State/territory	PYE	8 357	7 320	7 279	7 834	r6 889	6 561
	Total(b)	PYE	18 542	16 687	16 760	17 042	r16 689	16 381
r revised
(a) There was no survey conducted for the 2010-11 financial year. See Explanatory Note 3 for details.
(b) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.
(c) The reference year for chain volume measures is 2011-12. See Explanatory Notes 30 and 31 for details.

In 2012-13, Commonwealth government organisations contributed 63% ($2,345 million), and state and territory government organisations contributed 37% ($1,381 million), to total government expenditure on R&D (GOVERD). Total government human resources devoted to R&D were comprised of 60% (9,820 PYE) Commonwealth government, and 40% (6,561 PYE) state and territory government.

GOVERD increased by 5% in current price terms and 2% in chain volume terms between 2011-12 and 2012-13.

Subsequent expenditure figures and supporting commentary relate to current price terms.


GOVERD and Gross Domestic Product (GDP)

At a whole of government level, GOVERD as a proportion of Gross Domestic Product (GDP) was almost unchanged at approximately 0.24% in 2011-12 and 2012-13.

TYPE OF EXPENDITURE

In 2012-13, GOVERD was comprised of $3,058 million (82%) in Current expenditure and $668 million (18%) in Capital expenditure. The largest component of Current expenditure was Labour costs, at $1,871 million (61% of Current expenditure). The largest component of Capital expenditure was Land, buildings and other structures, at $445 million (67% of Capital expenditure).

Of all types of expenditure components, Capital expenditure on Land, buildings and other structures recorded the largest increase from 2011-12, up $264 million (146%).


SOURCE OF FUNDS

As in previous survey results, the main sources of funds for GOVERD in 2012-13 were Own funds ($2,555 million or 69% of GOVERD) and Other Commonwealth government ($524 million or 14% of GOVERD).

Between 2011-12 and 2012-13, Own funds recorded the largest dollar increase of $193 million (8%).

Overseas funds recorded the largest dollar decrease from 2011-12, down $76 million (52%).


LOCATION OF EXPENDITURE

Location of expenditure relates to the region in which R&D activity was performed; see also Explanatory Note 27.

In 2012-13, Victoria ($1,105 million) and New South Wales ($713 million) together accounted for 49% of total GOVERD.

Victoria recorded the largest increase in GOVERD between 2011-12 and 2012-13, up $253 million (30%).

The Australian Capital Territory recorded the largest decrease in dollar terms, down $72 million (14%) compared to 2011-12.

GOVERD and Gross State Product (GSP)

Between 2011-12 and 2012-13, GOVERD as a proportion of Gross State Product (GSP) increased for New South Wales and Victoria. GOVERD/GSP ratios for Queensland and Western Australia were unchanged between 2011-12 and 2012-13, while ratios decreased for all other locations from 2011-12.

GOVERD, by location of expenditure - proportion of GSP(a)
		NSW	Vic.	Qld	SA	WA	Tas.	NT	ACT
		%	%	%	%	%	%	%	%
2011-12
	Commonwealth	0.09	0.18	0.09	0.41	0.05	0.53	0.24	1.47
	State	0.06	0.08	0.09	0.15	0.05	0.07	0.11	0.05
	Total(b)	0.14	0.26	0.18	0.57	0.10	0.60	0.34	1.51
2012-13
	Commonwealth	0.09	0.18	0.09	0.37	0.05	0.53	0.17	1.21
	State	0.06	0.15	0.09	0.14	0.05	-	0.14	0.06
	Total(b)	0.15	0.33	0.18	0.52	0.10	0.53	0.32	1.27
- nil or rounded to zero (including null cells)
(a) See Explanatory Note 28 for details.
(b) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.

TYPE OF ACTIVITY

In 2012-13, more than half of GOVERD was directed into Applied research (52% or $1,949 million) and more than a quarter into Strategic basic research (31% or $1,156 million).

Compared to 2011-12, Strategic basic research recorded the largest increase in GOVERD, up $166 million (17%).

Pure basic research recorded the largest decrease in GOVERD, down $8 million (4%), and remained the smallest type of activity (4% of GOVERD or $163 million) in 2012-13.


FIELDS OF RESEARCH (FOR)

The FOR attracting the largest amounts of GOVERD in 2012-13 were Agricultural and veterinary sciences ($693 million), Medical and health sciences ($564 million), Engineering ($541 million) and Biological sciences ($424 million); these four fields were also the largest in 2011-12. In 2012-13, these fields together accounted for more than half (60%) of total GOVERD.


SOCIO-ECONOMIC OBJECTIVE (SEO)

The four largest SEOs, in terms of expenditure, in 2012-13 were Environment ($770 million), Health ($676 million), Defence ($554 million) and Plant production and plant primary products ($455 million). The top four SEOs were unchanged from 2011-12. In 2012-13, these SEOs comprised two thirds (66%) of total GOVERD.


GOVERNMENT HUMAN RESOURCES DEVOTED TO R&D

Government organisations devoted 16,381 person years of effort (PYE) to R&D in 2012-13, a decrease of 308 PYE (2%) from 2011-12.

The decrease was due to decreases in PYE for Other staff (down 172 PYE or 7%) and Researchers (down 143 PYE or 2%).

Researchers remained the largest type of resource in 2012-13, accounting for 51% of total government human resources devoted to R&D.