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 $301m (12%) in 2002-03 (table 18.26). Industries contributing the most to manufacturing R&D expenditure in 2002-03 were: motor vehicle and part and other transport equipment manufacturing (26%); petroleum, coal, chemical and associated product manufacturing (17%); metal product manufacturing (12%); and electronic and electrical equipment and appliance manufacturing (12%). Together, these industries accounted for 67% of total R&D expenditure by the manufacturing industry and 32% of the total R&D expenditure by all industries.
18.26 EXPENDITURE ON RESEARCH AND DEVELOPMENT
|
 | 2000-01 | 2001-02 | 2002-03 |
| Manufacturing industry subdivision | $m | $m | $m |
|
| Food, beverage and tobacco manufacturing | 202 | 231 | 234 |
| Textile, clothing, footwear and leather manufacturing | 27 | 22 | 28 |
| Wood and paper product manufacturing | 100 | 84 | 98 |
| Printing, publishing and recorded media | 17 | 16 | 15 |
| Petroleum, coal, chemical and associated product manufacturing | 395 | 430 | 492 |
| Non-metallic mineral product manufacturing | 41 | 74 | 86 |
| Metal product manufacturing | 221 | 257 | 343 |
| Motor vehicle and part and other transport equipment manufacturing | 473 | 555 | 731 |
| Photographic and scientific equipment manufacturing | 220 | 279 | 304 |
| Electronic and electrical equipment and appliance manufacturing | 430 | 423 | 329 |
| Industrial machinery and equipment manufacturing | 108 | 134 | 150 |
| Other manufacturing | 21 | 22 | 20 |
| Total manufacturing | 2,255 | 2,528 | 2,829 |
|
| Source: Research and Experimental Development, Businesses, Australia (8104.0). |
Of manufacturing industry total R&D expenditure in 2002-03, 7% was on capital expenditure, 45% on labour costs and 48% on other current expenditure (table 18.27). 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 (29%), labour costs (26%), and other current expenditure (25%). Manufacturing accounted for 45% of the capital expenditure, 48% of the labour costs, and 47% of other current expenditure on R&D by all industries.
18.27 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2002-03
|
| Capital expenditure | Labour costs(a) | Other current expenditure | Total |
| Manufacturing industry subdivision | $m | $m | $m | $m |
|
| Food, beverage and tobacco manufacturing | 19 | 122 | 93 | 234 |
| Textile, clothing, footwear and leather manufacturing | 6 | 13 | 9 | 28 |
| Wood and paper product manufacturing | 4 | 26 | 68 | 98 |
| Printing, publishing and recorded media | 1 | 8 | 5 | 15 |
| Petroleum, coal, chemical and associated product manufacturing | 36 | 192 | 265 | 492 |
| Non-metallic mineral product manufacturing | 15 | 33 | 38 | 86 |
| Metal product manufacturing | 20 | 113 | 211 | 343 |
| Motor vehicle and part and other transport equipment manufacturing | 61 | 333 | 337 | 731 |
| Photographic and scientific equipment manufacturing | 14 | 162 | 128 | 304 |
| Electronic and electrical equipment and appliance manufacturing | 21 | 181 | 126 | 329 |
| Industrial machinery and equipment manufacturing | 10 | 75 | 65 | 150 |
| Other manufacturing | 2 | 11 | 8 | 20 |
| Total manufacturing | 208 | 1,269 | 1,353 | 2,829 |
|
(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.
Source: Research and Experimental Development, Businesses, Australia, 2002-03 (8104.0). |
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