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. ABS surveys of R&D are based on a complete enumeration of businesses identified by the ABS as likely R&D performers. Businesses mainly engaged in agriculture, forestry and fishing are excluded.
Total R&D expenditure by the manufacturing industry increased by $386m (13%) in 2003-04 (table 18.20). Industries contributing the most to manufacturing R&D expenditure in 2003-04 were: Motor vehicle and part and other transport equipment manufacturing (26%); Petroleum, coal, chemical and associated product manufacturing (18%); Electronic and electrical equipment and appliance manufacturing (12%); and Metal product manufacturing (10%). Together, these industries accounted for 66% of total R&D expenditure by the manufacturing industry and 30% of the total R&D expenditure by all industries.
18.20 EXPENDITURE ON RESEARCH AND DEVELOPMENT
|
 | 2001-02 | 2002-03 | 2003-04 |
| Manufacturing industry subdivision | $m | $m | $m |
|
| Food, beverage and tobacco manufacturing | 231 | 237 | 260 |
| Textile, clothing, footwear and leather manufacturing | 22 | 28 | 41 |
| Wood and paper product manufacturing | 84 | 98 | 126 |
| Printing, publishing and recorded media | 18 | 17 | 26 |
| Petroleum, coal, chemical and associated product manufacturing | 430 | 517 | 584 |
| Non-metallic mineral product manufacturing | 74 | 87 | 97 |
| Metal product manufacturing | 256 | 342 | 345 |
| Motor vehicle and part and other transport equipment manufacturing | 555 | 731 | 868 |
| Photographic and scientific equipment manufacturing | 279 | 305 | 333 |
| Electronic and electrical equipment and appliance manufacturing | 429 | 362 | 389 |
| Industrial machinery and equipment manufacturing | 134 | 165 | 201 |
| Other manufacturing | 24 | 21 | 24 |
| Total manufacturing | 2,537 | 2,908 | 3,294 |
|
| Source: Research and Experimental Development, Businesses, Australia (8104.0). |
Of manufacturing industry total R&D expenditure in 2003-04, 8% was on capital expenditure, 43% on labour costs and 49% on other current expenditure (table 18.21). The Motor vehicle and part and other transport equipment manufacturing industry contributed the largest expenditure on R&D by the manufacturing industry for each of capital expenditure (30%), labour costs (26%), and other current expenditure (26%). Manufacturing accounted for 51% of the capital expenditure, 45% of the labour costs, and 45% of other current expenditure on R&D by all industries.
18.21 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2003-04
|
| Capital expenditure | Labour costs | Other current expenditure | Total |
| Manufacturing industry subdivision | $m | $m | $m | $m |
|
| Food, beverage and tobacco manufacturing | 31 | 117 | 113 | 260 |
| Textile, clothing, footwear and leather manufacturing | 7 | 16 | 18 | 41 |
| Wood and paper product manufacturing | 5 | 34 | 88 | 126 |
| Printing, publishing and recorded media | n.p. | 12 | n.p. | 26 |
| Petroleum, coal, chemical and associated product manufacturing | 40 | 240 | 304 | 584 |
| Non-metallic mineral product manufacturing | 12 | 29 | 56 | 97 |
| Metal product manufacturing | 22 | 92 | 231 | 345 |
| Motor vehicle and part and other transport equipment manufacturing | 76 | 369 | 423 | 868 |
| Photographic and scientific equipment manufacturing | 21 | 178 | 134 | 333 |
| Electronic and electrical equipment and appliance manufacturing | 19 | 226 | 144 | 389 |
| Industrial machinery and equipment manufacturing | 12 | 97 | 92 | 201 |
| Other manufacturing | n.p. | 13 | n.p. | 24 |
| Total manufacturing | 251 | 1,421 | 1,622 | 3,294 |
|
| Source: Research and Experimental Development, Businesses, Australia, 2003-04 (8104.0). |
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