1301.0 - Year Book Australia, 2005

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 21/01/2005

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Contents >> Science and innovation >> Resources devoted to R&D

Business sector

Business expenditure on R&D (BERD) in 2002-03 was $5,979m, 3.6% higher than recorded in 2001-02 (table 25.1). This represented the highest level recorded to date and is the third successive year of increase following the declines from 1995-96 to 1998-99 and the levelling off between 1998-99 and 1999-2000. In volume terms, with the effect of changes in prices and wages and salaries removed, BERD increased by 1.5% in 2002-03 compared with 2001-02.

Human resources (in person years) devoted to R&D in 2002-03 was 5.9% higher than in 2001-02 (table 25.2).

In 2002-03 BERD was 0.79% of GDP compared with 0.81% in 2001-02.

The net increase in BERD between 2001-02 and 2002-03 was attributable to a 11.9% increase by the manufacturing industry, a 3.0% decrease by the mining industry and a 2.8% decrease by other industries in total. It should be noted that mineral exploration is excluded from the definition of R&D (table 25.6).

25.6 BUSINESS R&D RESOURCES, By industry
		Businesses		Expenditure on R&D		Effort on R&D

		2001-02	2002-03	2001-02	2002-03	2001-02	2002-03
		no.	no.	$m	$m	’000 person years	’000 person years

Mining (incl. services to mining)		119	137	553	536	0.8	0.6
Manufacturing
	Food, beverage and tobacco	140	157	231	234	1.4	1.4
	Textile, clothing, footwear and leather	43	45	22	28	0.2	0.2
	Wood and paper product	34	45	84	98	0.3	0.4
	Printing, publishing and recorded media	40	43	16	15	0.1	0.2
	Petroleum, coal, chemical and associated product	352	377	430	492	2.4	2.8
	Non-metallic mineral product	52	70	74	86	0.2	0.4
	Metal product	176	174	257	343	1.0	1.4
	Motor vehicle and part and other transport equipment	129	147	555	731	3.5	4.5
	Photographic and scientific equipment	138	140	279	304	1.6	1.7
	Electronic and electrical equipment and appliance	364	378	423	329	3.1	2.5
	Industrial machinery and equipment	232	266	134	150	1.1	1.2
	Other manufacturing	78	76	22	20	0.2	0.2
	Total	1,778	1,918	2,528	2,829	15.2	16.9
Other industries
	Wholesale and retail trade	339	370	447	429	2.9	2.9
	Finance and insurance	53	54	225	239	0.8	0.8
	Property and business services	1,050	1,254	1,068	1,044	7.7	8.0
	Scientific research	220	240	315	344	1.7	1.7
	Other n.e.c.	252	287	634	557	2.1	2.2
	Total	1,914	2,205	2,689	2,613	15.2	15.5
Total all industries		3,811	4,260	5,770	5,979	31.1	33.0

Source: Research and Experimental Development, Businesses, Australia (8104.0).

Major research fields in which BERD took place were: computer software (13%); automotive engineering (11%); manufacturing engineering (8%); communications technologies (7%); medical and health sciences (7%); other information, computing and communication sciences (6%); and resources engineering (6%) (table 25.7).

A slightly different pattern applied to human resources devoted to R&D, with 18% in computer software; 11% in automotive engineering; 8% in manufacturing engineering; 6% in communications technologies; 6% in other engineering and technology; 6% in electrical and electronic engineering; and 6% in medical and health sciences (table 25.7).

25.7 BUSINESS R&D RESOURCES, By field of research(a) - 2002-03
	Type of expenditure

	Capital expenditure	Labour costs	Other current expenditure	Total	Human resources
	$m	$m	$m	$m	’000 person years

Mathematical sciences	0.5	13.5	16.4	30.4	0.2
Physical sciences	2.3	22.8	20.3	45.4	0.3
Chemical sciences	13.8	89.2	100.9	203.9	1.3
Earth sciences	4.7	16.7	92.8	114.2	0.2
Biological sciences	20.8	94.0	95.5	210.3	1.0
Information systems	12.6	149.1	125.7	287.4	1.8
Computer software	30.5	515.3	230.1	775.9	6.1
Other information, computing and communication sciences	9.7	156.1	210.8	376.5	1.8
Industrial biotechnology and food sciences	10.7	80.2	56.7	147.7	0.9
Chemical engineering	7.5	30.9	55.4	93.9	0.4
Manufacturing engineering	53.3	192.2	237.7	483.3	2.7
Automotive engineering	52.9	284.9	295.8	633.6	3.6
Mechanical and industrial engineering	13.3	79.4	81.9	174.7	1.2
Resources engineering	38.0	61.6	270.3	369.8	0.6
Electrical and electronic engineering	35.0	145.5	120.2	300.7	1.9
Metallurgy	16.1	43.4	124.6	184.1	0.5
Materials engineering	13.2	53.4	58.3	124.9	0.7
Communications technologies	45.9	171.2	180.9	398.0	2.1
Other engineering and technology	36.1	143.2	161.7	340.9	2.1
Agricultural, veterinary and environmental sciences	17.7	76.3	106.0	199.9	1.1
Medical and health sciences	20.8	163.4	207.8	392.0	1.9
Other research fields	2.5	44.1	44.5	91.1	0.5
Total	457.8	2,626.5	2,894.3	5,978.6	33.0

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. Source: Research and Experimental Development, Businesses, Australia, 2002-03 (8104.0).

In terms of socioeconomic objectives, most BERD ($5,382m or 90%) was directed towards economic development (table 25.8). About 7% was directed towards society, 2% towards defence and 1% towards environment. Of the amount directed towards economic development, $2,541m (47%) was directed towards manufacturing.

The same pattern applied to human resources devoted to R&D, with 90% directed towards economic development, 7% directed towards society, 2% towards defence and 1% towards environment (table 25.8).

25.8 BUSINESS R&D RESOURCES, By socioeconomic objective(a) - 2002-03
		Type of expenditure

		Capital expenditure	Labour costs	Other current expenditure	Total	Human resources
		$m	$m	$m	$m	’000 person years

Defence		(b)n.p.	45.2	(b)n.p.	108.0	0.6
Economic development
	Plant - production and primary products	10.4	31.5	34.0	75.9	0.5
	Animal - production and primary products	5.5	23.4	32.9	61.8	0.3
	Mineral resources (excl. energy)	22.8	79.8	333.5	436.1	0.9
	Energy resources	31.8	31.7	114.2	177.7	0.3
	Energy supply	34.6	50.5	69.4	154.6	0.7
	Manufacturing	187.6	1,144.8	1,208.9	2,541.3	15.0
	Construction	5.2	57.3	89.6	152.1	0.8
	Transport	16.9	61.1	58.3	136.3	1.1
	Information and communication services	74.8	687.1	529.1	1,291.0	8.3
	Commercial services and tourism	22.2	182.4	137.1	341.8	1.7
	Economic framework	0.6	8.3	4.4	13.4	0.1
	Total	412.5	2,357.9	2,611.5	5,381.9	29.6
Society
	Health	23.2	171.6	181.5	376.4	1.9
	Education and training	0.6	9.4	3.4	13.3	0.2
	Social development and community services	1.0	16.9	8.3	26.2	0.2
	Total	24.8	197.9	193.2	415.9	2.3
Environment
	Environmental policy frameworks and other aspects	1.0	5.2	4.1	10.3	0.1
	Environmental management	5.9	17.3	33.5	56.7	0.3
	Total	7.0	22.5	37.6	67.0	0.4
Non-oriented research		(b)n.p.	3.0	(b)n.p.	5.7	-
Total		457.8	2,626.5	2,894.3	5,978.6	33.0

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. (b) Not available for publication but included in totals where applicable, unless otherwise indicated. Source: Research and Experimental Development, Businesses, Australia, 2002-03 (8104.0).

General government sector

Expenditure on R&D carried out by Commonwealth, and state and territory government organisations in 2002-03 was $2,482m, a 5% increase on expenditure in 2000-01 (table 25.1).

The research fields in which most government R&D expenditure took place were: agricultural, veterinary and environmental sciences ($761m, or 31%); engineering and technology ($424m, or 17%); biological sciences ($263m, or 11%); earth sciences ($242m, or 10%); and medical and health sciences ($198m, or 8%) (table 25.9).

A slightly different pattern applied to human resources devoted to R&D, with agricultural, veterinary and environmental sciences accounting for 32%; engineering and technology 17%; medical and health sciences 12%; biological sciences 11%; and earth sciences 7% (table 25.9).

25.9 GOVERNMENT R&D RESOURCES, By field of research(a) - 2002-03
	Type of expenditure

	Land and buildings	Other capital expenditure	Labour costs	Other current expenditure	Total	Human resources
	$m	$m	$m	$m	$m	’000 person years

Mathematical sciences	1.4	1.2	22.0	11.5	36.1	0.3
Physical sciences	5.5	9.5	66.5	38.2	119.6	0.8
Chemical sciences	5.4	10.9	64.1	41.3	121.8	0.8
Earth sciences	13.7	16.5	102.1	110.2	242.5	1.3
Biological sciences	19.6	14.9	132.1	96.8	263.4	2.0
Information, computing and communication sciences	3.9	6.0	88.2	83.6	181.7	1.1
Engineering and technology	18.8	24.3	235.2	146.1	424.4	3.1
Agricultural, veterinary and environmental sciences	26.3	21.3	371.4	342.3	761.3	5.9
Medical and health sciences	3.2	9.1	125.9	60.2	198.4	2.2
Economics	0.4	1.0	33.7	22.7	57.7	0.5
Law, justice and law enforcement	0.3	0.3	9.6	5.9	16.1	0.1
Other research fields	1.7	2.6	36.5	18.3	59.1	0.5
Total	100.1	117.5	1,287.3	977.2	2,482.2	18.5
Commonwealth	88.2	92.5	785.5	565.1	1,531.3	10.2
State/territory	11.9	25.0	501.8	412.1	950.9	8.4

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. Source: Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2002-03 (8109.0).

In terms of socioeconomic objectives, most government sector R&D expenditure ($1,341m or 54%) was directed towards economic development (table 25.10). About 20% was directed towards environment, 12% towards society, 11% towards defence, and 2% to non-oriented research. Of the amount directed towards economic development, $377m (28%) was directed towards plant production and primary products, $278m (21%) towards animal production and primary products, and $233m (17%) towards manufacturing (table 25.10).

A slightly different pattern applied to human resources devoted to R&D, with 51% directed towards economic development, 18% towards environment, 17% towards society, 13% towards defence, and 2% to non-oriented research (table 25.10).

25.10 GOVERNMENT R&D RESOURCES, By socioeconomic objective(a) - 2002-03
		Type of expenditure

		Land and buildings	Other capital expenditure	Labour costs	Other current expenditure	Total	Human resources
		$m	$m	$m	$m	$m	’000 person years

Defence		0.3	12.2	194.2	77.2	283.9	2.4
Economic development
	Plant - production and primary products	11.1	9.4	185.2	171.7	377.4	2.9
	Animal - production and primary products	9.1	7.3	133.1	128.0	277.6	2.2
	Mineral resources (excl. energy)	5.4	5.5	44.9	41.9	97.7	0.5
	Energy resources	2.9	1.9	27.6	26.5	59.0	0.3
	Energy supply	2.1	1.0	13.9	9.4	26.4	0.2
	Manufacturing	15.1	20.6	109.6	88.1	233.4	1.6
	Construction	2.6	1.6	21.4	12.8	38.4	0.2
	Transport	0.3	0.4	6.4	8.1	15.3	0.1
	Information and communication services	4.9	2.5	31.0	14.4	52.9	0.4
	Commercial services and tourism	0.7	2.1	17.1	7.1	27.1	0.2
	Economic framework	1.4	1.7	57.9	74.7	135.7	0.7
	Total	55.6	54.1	648.1	582.9	1,340.7	9.4
Society
	Health	3.4	10.3	140.6	73.6	228.0	2.5
	Education and training	0.2	0.1	8.4	3.0	11.7	0.1
	Social development and community services	2.3	2.0	35.2	20.5	59.9	0.5
	Total	5.9	12.5	184.3	97.0	299.6	3.1
Environment
	Environmental policy frameworks and other aspects	1.3	1.2	19.2	13.9	35.7	0.3
	Environmental management	34.4	32.5	217.7	188.5	473.1	3.0
	Total	35.8	33.7	236.9	202.4	508.7	3.3
Non-oriented research		2.7	5.1	23.8	17.7	49.2	0.4
Total		100.1	117.5	1,287.3	977.2	2,482.2	18.5

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. Source: Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2002-03 (8109.0).

Higher education sector

Estimated expenditure on R&D carried out by the higher education sector in 2002 was $3,430m, an increase of 23% over expenditure in 2000, and 34% over expenditure in 1998 (table 25.1).

The major fields of research in which higher education R&D expenditure took place in 2002 were: medical and health sciences ($864m, or 25% of total expenditure); biological sciences ($410m, or 12%); engineering and technology ($375m, or 11%); and agricultural, veterinary and environmental sciences ($235m, or 7%). Direct labour costs accounted for 42% of total R&D expenditure (table 25.11).

A slightly different pattern applied to human resources devoted to R&D, with 19% on medical and health sciences, 10% on engineering and technology, 10% on biological sciences and 6% on agricultural, veterinary and environmental sciences (table 25.11).

25.11 HIGHER EDUCATION R&D RESOURCES, By field of research(a) - 2002
	Type of expenditure

	Land and buildings	Other capital expenditure	Direct labour costs	Scholarships	Other current expenditure	Total	Human resources
	$m	$m	$m	$m	$m	$m	’000 person years

Mathematical sciences	0.9	2.5	30.4	4.1	26.1	64.0	0.8
Physical sciences	1.0	11.1	57.4	6.6	53.3	129.4	1.4
Chemical sciences	18.5	11.1	57.3	12.3	56.1	155.2	1.9
Earth sciences	1.1	11.2	47.4	7.7	46.7	114.1	1.5
Biological sciences	56.2	21.5	146.4	26.1	160.0	410.2	4.8
Information, computing and communication sciences	2.0	11.2	62.3	11.1	57.5	144.1	2.2
Engineering and technology	6.6	28.7	150.3	30.7	158.2	374.5	5.2
Agricultural, veterinary and environmental sciences	3.7	11.0	99.9	18.0	102.6	235.2	3.1
Medical and health sciences	16.0	44.0	353.1	41.2	409.6	863.8	9.4
Education	3.0	3.3	58.0	11.2	52.9	128.4	3.1
Economics	1.7	1.7	38.8	4.3	37.4	83.8	1.2
Commerce, management, tourism and services	3.3	4.0	65.4	7.3	57.2	137.2	2.5
Studies in human society	1.9	2.6	48.9	9.9	48.1	111.4	2.3
Behavioural and cognitive sciences	2.7	4.4	51.2	10.5	44.5	113.3	2.2
Other research fields	12.7	8.5	170.0	36.2	137.7	365.0	8.1
Total	131.2	176.7	1,436.8	237.3	1,447.6	3,429.6	49.6

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. Source: Research and Experimental Development, Higher Education Organisations, Australia, 2002 (8111.0).

In terms of socioeconomic objectives (table 25.12), most higher education R&D expenditure ($1,474m or 43%) was directed towards society. About 29% was directed towards economic development, 21% towards non-oriented research and 6% towards environment. The major subdivision within society was health with 28% of total R&D expenditure.

A similar pattern applied to human resources devoted to R&D, with 44% directed towards society, 29% towards economic development, 20% towards non-oriented research and 7% to environment (table 25.12).

25.12 HIGHER EDUCATION R&D RESOURCES, By socioeconomic objective(a) - 2002
		Type of expenditure

		Land and buildings	Other capital expenditure	Direct labour costs	Scholarships	Other current expenditure	Total	Human resources
		$m	$m	$m	$m	$m	$m	’000 person years

Defence		-	1.5	4.3	0.6	4.5	10.9	0.1
Economic development
	Plant - production and primary products	1.1	5.5	47.9	8.2	53.0	115.8	1.5
	Animal - production and primary products	1.5	4.2	32.7	6.0	32.3	76.6	1.0
	Mineral resources (excl. energy)	0.4	3.7	24.0	3.5	27.3	58.8	0.7
	Energy resources	0.8	3.6	14.0	2.2	14.4	35.0	0.5
	Energy supply	0.7	3.5	15.8	3.5	17.0	40.6	0.5
	Manufacturing	6.7	17.6	78.8	17.3	80.2	200.6	2.7
	Construction	1.4	4.8	24.8	5.9	25.3	62.1	1.1
	Transport	0.5	1.3	11.9	1.9	12.8	28.5	0.3
	Information and communication services	2.1	11.1	70.9	11.9	65.8	161.8	2.4
	Commercial services and tourism	1.0	1.5	21.3	2.3	16.5	42.6	0.7
	Economic framework	3.2	4.4	79.3	9.2	73.2	169.3	2.8
	Total	19.5	61.2	421.4	72.0	417.8	991.8	14.3
Society
	Health	27.0	42.1	398.5	49.2	453.6	970.4	11.2
	Education and training	3.4	4.5	71.1	15.4	66.5	160.8	3.5
	Social development and community services	11.9	8.2	159.7	32.3	130.9	343.0	7.3
	Total	42.3	54.8	629.2	96.9	651.0	1,474.2	22.0
Environment
	Environmental policy frameworks and other aspects	0.6	1.4	15.1	3.2	13.9	34.3	0.5
	Environmental management	4.2	10.7	77.1	15.5	79.2	186.7	2.9
	Total	4.9	12.1	92.2	18.7	93.1	221.1	3.4
Non-oriented research		64.5	47.1	289.7	49.1	281.2	731.5	9.8
Total		131.2	176.7	1,436.8	237.3	1,447.6	3,429.6	49.6

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. Source: Research and Experimental Development, Higher Education Organisations, Australia, 2002 (8111.0).

Private non-profit sector

Expenditure on R&D carried out by private non-profit organisations in 2002-03 was $360m, an increase an 24% on expenditure in 2000-01 (table 25.1).

Medical and health sciences comprised the major field of research for R&D expenditure in the private non-profit sector, accounting for $221m (61%) of the sector's total R&D expenditure in 2002-03. Labour costs continued to be the main component of R&D expenditure (50%) (table 25.13).

Medical and health sciences also comprised the leading field of research in terms of human resource use (table 25.13).

25.13 PRIVATE NON-PROFIT R&D RESOURCES, By field of research(a) - 2002-03
	Type of expenditure

	Land and buildings	Other capital expenditure	Labour costs	Other current expenditure	Total	Human resources
	$m	$m	$m	$m	$m	person years

Mathematical sciences	0.1	(b)n.p.	(b)n.p.	(b)n.p.	(b)n.p.	(b)n.p.
Physical sciences	(b)n.p.	0.1	(b)n.p.	0.1	(b)n.p.	(b)n.p.
Chemical sciences	0.2	0.7	0.9	2.3	4.0	15
Earth sciences	-	-	-	-	-	-
Biological sciences	3.5	8.1	55.4	37.5	104.6	966
Information, computing and communication sciences	0.1	0.7	1.9	2.1	4.8	32
Engineering and technology	(b)n.p.	(b)n.p.	0.7	0.6	1.5	12
Agricultural, veterinary and environmental sciences	(b)n.p.	(b)n.p.	1.0	0.9	2.1	18
Medical and health sciences	9.2	16.9	108.8	85.9	220.8	1,945
Other research fields	n.p.	0.5	9.1	(b)n.p.	19.4	116
Total	13.7	27.5	178.8	139.6	359.5	3,117

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. (b) Not available for publication but included in totals where applicable, unless otherwise indicated. Source: Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2002-03 (8109.0).

In the private non-profit sector, health was the main socioeconomic objective, accounting for 90% or $324m of total R&D expenditure. Education and training accounted for $20m (6%), while $11m (3%) was directed towards economic development (table 25.14).

A similar pattern applied to human resources devoted to R&D, with 92% directed towards health, 4% towards education and training, and 2% towards economic development (table 25.14).

25.14 PRIVATE NON-PROFIT R&D RESOURCES, By socioeconomic objective(a) - 2002-03
		Type of expenditure

		Land and buildings	Other capital expenditure	Labour costs	Other current expenditure	Total	Human resources
		$m	$m	$m	$m	$m	person years

Defence		-	-	-	-	-	-
Economic development		(b)n.p.	1.4	3.6	(b)n.p.	11.2	65
Society
	Health	12.6	25.3	163.1	123.0	324.0	2,882
	Education and training	(b)n.p.	0.6	9.4	(b)n.p.	20.1	119
	Social development and community services	(b)n.p.	0.1	1.3	(b)n.p.	1.9	20
	Total	13.0	26.0	173.7	133.2	345.9	3,021
Environment		-	(b)n.p.	1.0	(b)n.p.	1.7	21
Non-oriented research		(b)n.p.	(b)n.p.	0.5	0.2	0.8	10
Total		13.7	27.5	178.8	139.6	359.5	3,117

(a) Data were subjectively allocated by data providers at the time of reporting, using OECD/ABS definitions. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data and applies consistent processing methodologies. Readers using these data should bear in mind the original subjectivity of the information. (b) Not available for publication but included in totals where applicable, unless otherwise indicated. Source: Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2002-03 (8109.0).