1301.0 - Year Book Australia, 2007  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2007   
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Contents >> Science and Innovation >> Expenditure and human resources devoted to R&D

EXPENDITURE AND HUMAN RESOURCES DEVOTED TO R&D

The ABS defines R&D 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.

Tables 25.2 and 25.3 summarise the latest R&D statistics available.


25.2 EXPENDITURE ON R&D(a)
1999-2000
2000-01
2001-02
2002-03
2003-04
Sector
$m
$m
$m
$m
$m
Business
4,136.7
4,982.6
6,191.9
6,571.4
7220.2
Government
Commonwealth
n.a.
1,404.8
n.a.
1,531.3
n.a.
State and territory
n.a.
951.0
n.a.
950.9
n.a.
Total
n.a.
2,355.8
n.a.
2,482.2
n.a.
Higher education(b)
n.a.
2,789.8
n.a.
3,429.6
n.a.
Private non-profit
n.a.
289.0
n.a.
359.5
n.a.
Total
n.a.
10,417.1
n.a.
12,842.7
n.a.
(a) Statistics on R&D expenditure in the government, higher education and private non-profit sectors are collected biennially.
(b) Data for the calendar year ending within the financial year shown.
Source: Research and Experimental Development, All Sector Summary, Australia (8112.0); Research and Experimental Development, Businesses, Australia (8104.0).

25.3 HUMAN RESOURCES DEVOTED TO R&D(a)
1999-2000
2000-01
2001-02
2002-03
2003-04
Sector
’000 person years
’000 person years
’000 person years
’000 person years
’000 person years
Business
26.5
28.4
32.2
35.6
38.1
Government
Commonwealth
n.a.
9.6
n.a.
10.2
n.a.
State and territory
n.a.
8.6
n.a.
8.4
n.a.
Total
n.a.
18.2
n.a.
18.5
n.a.
Higher education(b)
n.a.
46.3
n.a.
49.6
n.a.
Private non-profit
n.a.
2.8
n.a.
3.1
n.a.
Total
n.a.
95.6
n.a.
106.8
n.a.
(a) Statistics on R&D expenditure in the government, higher education and private non-profit sectors are collected biennially.
(b) Data for the calendar year ending within the financial year shown.
Source: Research and Experimental Development, All Sector Summary, Australia (8112.0); Research and Experimental Development, Businesses, Australia (8104.0).


INTERNATIONAL COMPARISONS

The most commonly used indicator for international comparison purposes is the ratio of expenditure on R&D to gross domestic product (GDP). In 2002-03 Australia's R&D expenditure was 1.69% of its GDP, ranking it 15th in the group of Organisation for Economic Co-operation and Development (OECD) member countries (table 25.4).

In terms of business enterprise R&D, Australia's ratio of R&D expenditure to GDP in 2002-03 (0.87%) also ranked 15th in the OECD.

For government sector R&D as a percentage of GDP, Australia ranks higher. A R&D to GDP ratio of 0.33% places it eighth in the group of OECD member countries.

For the higher education sector, Australia ranks seventh with a R&D to GDP ratio of 0.45%,


25.4 EXPENDITURE ON R&D AS A PERCENTAGE OF GDP, OECD countries - 2002-03
Business(a)
Government(a)
Higher
education(a)
All
industries(a)(b)
Country
%
%
%
%
Sweden(b)
n.a.
0.12
0.83
4.27
Finland
2.41
0.36
0.66
3.46
Japan
2.12
0.30
0.43
3.12
Iceland
1.55
0.76
0.50
3.09
Korea, Republic of (South)
1.77
0.39
0.30
2.91
United States of America
2.04
0.24
0.42
2.67
Germany
1.75
0.35
0.43
2.52
France
1.36
0.37
0.43
2.20
Belgium(b)
1.48
0.13
0.42
2.17
Austria
n.a.
n.a.
n.a.
1.93
Canada
1.15
0.22
0.63
1.91
Netherlands(b)
1.11
0.27
0.51
1.89
United Kingdom
1.21
0.17
0.42
1.88
Australia
0.74
0.33
0.45
1.69
Norway
n.a.
0.26
0.45
1.67
Czech Republic
0.74
0.30
0.20
1.30
New Zealand(b)
n.a.
0.39
0.36
1.18
Ireland(b)
0.82
0.09
0.26
1.15
Italy(b)
0.53
0.20
0.36
1.11
Spain
0.50
0.16
0.31
1.03
Hungary
0.35
0.34
0.26
1.02
Portugal
0.22
0.18
0.33
0.93
Greece(b)
n.a.
0.14
0.29
0.65
Poland
0.24
0.26
0.20
0.59
Slovak Republic
0.43
0.15
0.05
0.58
Mexico(b)
n.a.
0.15
0.12
0.39
(a) Data for Business sector for 2002-03, other sectors and All industries data for 2001-02.
(b) Includes private non-profit.
Source: Organization for Economic Co-operation and Development, 2004.


SOURCE OF FUNDS FOR EXPENDITURE ON R&D

In 2002-03 the business sector funded 49% of all Australian expenditure on R&D. This compares with 44% recorded in 1992-93. The Australian (Commonwealth) Government funded 36% of R&D in 2002-03 (down from 41% in 1992-93) and the state and territory governments funded 6% (down from 9% in 1992-93).

In 2002-03, 90% of funding for R&D carried out by businesses came from the business sector (down from 94% in 1992-93). Commonwealth Government organisations provided 4% of funding for business R&D expenditure in 2002-03.

About 82% of Commonwealth Government industry R&D was funded by Commonwealth Government organisations in 2002-03. The Commonwealth Government proportion of self-funding has fallen from 86% in 1992-93.

About 66% of state government expenditure on R&D was funded by state government organisations in 2002-03. This is significantly lower than a decade earlier, when the proportion was 76%.

About 86% of higher education R&D funding in 2002-03 came from the Commonwealth Government (compared with 91% in 1992-93). Business enterprises provided 5% of the funding in 2002-03, up from 3% in 1992-93.

Commonwealth Government organisations funded 29% of the R&D of the private non-profit industry in 2002-03, while the contribution by state governments was 11%.

Tables 25.5 and 25.6 show the data for 2002-03 and 1992-93 respectively.


25.5 EXPENDITURE ON R&D, Source of funds - 2002-03
Commonwealth Government
State government
Businesses
Other Australian(a)
Overseas
Total
Sector
$m
%
$m
%
$m
%
$m
%
$m
%
$m
Business
248.1
3.8
12.0
0.2
5,937.0
90.4
50.4
0.8
324.0
4.9
6,571.0
Government
Commonwealth
1,255.9
82.0
39.6
2.6
78.0
5.1
123.7
8.1
34.0
2.2
1,531.3
State and territory
67.4
7.1
630.3
66.3
50.3
5.3
189.3
19.9
13.7
1.4
950.9
Total
1,323.3
53.3
669.9
27.0
128.3
5.2
313.0
12.6
47.7
1.9
2,482.2
Higher education(b)
(c)2,937.9
85.7
104.5
3.0
174.1
5.1
98.5
2.9
114.6
3.3
3,429.6
Private non-profit
103.9
28.9
39.8
11.1
31.6
8.8
147.3
41.0
36.9
10.3
359.5
Total
4,613.2
35.9
826.2
6.4
6271.0
48.8
609.2
4.7
523.2
4.1
12,842.7
(a) Includes funds provided via government levies.
(b) Data for year 2002.
(c) Includes $2,033m of General University funds, the majority of which is funding from the Commonwealth Government.
Source: Research and Experimental Development, All Sector Summary, Australia, 2002-03 (8112.0).

25.6 EXPENDITURE ON R&D, Source of funds - 1992-93
Commonwealth Government
State government
Businesses
Other Australian(a)
Overseas
Total
Sector
$m
%
$m
%
$m
%
$m
%
$m
%
$m
Business
54.0
1.9
8.5
0.3
2,690.8
94.3
15.3
0.5
85.8
3.0
2,854.5
Government
Commonwealth
988.0
85.8
11.7
1.0
74.7
6.5
62.8
5.5
14.0
1.2
1,151.1
State and territory
56.5
8.5
509.3
76.3
29.0
4.3
69.1
10.4
3.8
0.6
667.6
Total
1,044.5
57.4
521.0
28.6
103.7
5.7
131.0
7.2
17.7
1.0
1,818.8
Higher education(b)
1,544.8
91.1
34.8
2.1
41.7
2.5
63.5
3.7
10.5
0.6
1,695.2
Private non-profit
33.9
33.5
12.8
12.6
6.9
6.8
44.3
43.8
3.3
3.3
101.2
Total
2,677.2
41.4
577.1
8.9
2,843.1
43.9
255.0
3.9
117.4
1.8
6,469.7
(a) Includes funds provided via government levies.
(b) Data for year 1992.
Source: Research and Experimental Development, All Sector Summary, Australia, 1994-95 (8112.0).



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