1377.0 - Measures of a knowledge-based economy and society, Australia, 2003  
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Contents >> Innovation and Entrepreneurship Indicators >> Proportion of Australian business research and experimental development (R&D) funded from overseas

CHARACTERISTIC: KNOWLEDGE NETWORKS AND FLOWS

INDICATOR: Proportion of Australian business research and experimental development (R&D) funded from overseas

The Business sector receives a small but growing proportion of funds from overseas sources. In 2002-03 this was 5.4% of the total R&D business sector expenditure.


BUSINESS R&D FUNDED FROM OVERSEAS


1999-00
2000-01
2001-02
2002-03
$'000
$'000
$'000
$'000
Overseas funding of Business R&D
189,165
232,844
341,844
323,381
Total Business sector expenditure
4,136,660
4,982,558
5,769,697
5,978,614

%
%
%
%
Overseas funding as proportion of business sector expenditure
4.6
4.7
5.9
5.4
Source: ABS Research and Experimental Development, Businesses, Australia (cat. no. 8104.0).




STATISTICAL NOTES

The Australian Standard Research Classification
The Australian Standard Research Classification (ASRC) is the collective name for a set of three related classifications developed for use in the measurement and analysis of research and experimental development (R&D) undertaken in Australia, both in the public and private sectors. It allows the comparison of R&D data between sectors of the Australian economy (e.g. general government, private non-profit organisations, business enterprises and educational institutions). One of the component classifications, Research Fields, Courses and Disciplines, is designed to also allow data collected on higher education courses, units of study and teaching activity to be categorised.

R&D
R&D is defined in accordance with the Organisation for Economic Co-operation and Development (OECD) standard as comprising 'creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications'.

R&D Business surveys
The R&D Business survey is conducted annually and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by businesses in Australia.

Sectors:
The sector classification used in the compilation of R&D statistics is adapted from the guidelines specified by the OECD for use in the conduct of R&D surveys.

Business sector
This sector includes all businesses whose primary activity is the production of goods or services for sale to the general public at a price intended to cover at least the cost of production, and the private non-profit institutions mainly serving them. The Business sector for the R&D survey excludes businesses mainly engaged in Agriculture, forestry, and fishing (i.e. industries in Division A of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (cat. no. 1292.0)), partly because of collection difficulties and partly because such businesses are believed to have very low R&D activity (agricultural R&D activity is generally carried out by specialised research institutes not included in ANZSIC Division A).


INTERNATIONAL COMPARISONS

PROPORTION OF BUSINESS EXPENDITURE ON R&D (BERD) FINANCED BY SECTOR
BERD
financed by Industry
BERD
financed by government
BERD
financed by other national sources
BERD
financed by abroad
2000-01
2002-03
2000-01
2002-03
2000-01
2002-03
2000-01
2002-03
%
%
%
%
%
%
%
%
Australia
91.0
89.6
3.8
4.3
0.6
0.7
4.7
5.4
Canada
68.5
75.9
2.3
3.2
0.0
0.0
29.1
21.0
Czech Republic
80.6
84.0
14.7
12.1
1.0
1.6
3.6
2.3
Finland
95.4
95.7
3.5
3.2
0.1
0.1
1.0
1.0
Germany
90.8
91.2
6.9
6.2
0.2
0.2
2.1
2.4
Hungary
75.8
69.3
6.1
7.2
0.0
0.1
17.2
22.6
Italy
80.5
78.0
11.0
15.0
0.3
0.3
8.2
6.8
Japan
97.7
97.9
1.7
1.0
0.1
0.6
0.6
0.5
Korea
92.8
93.0
7.0
6.4
0.2
0.1
0.0
0.5
Poland
66.3
86.5
32.0
11.8
0.1
0.3
1.6
1.4
Slovak Republic
77.9
77.5
20.6
21.1
0.0
0.3
1.6
1.2
Spain
86.7
84.0
7.2
9.5
2.3
0.5
3.7
5.9
United Kingdom
69.7
66.0
8.8
6.7
0.0
0.0
21.5
27.2
United States of America
90.4
90.1
9.6
9.9
0.0
0.0
na
na
na not available.
Source: OECD Main Science and Technology Indicators (http://www.oecd.org), ABS Research and Experimental Development, Businesses, Australia (cat. no. 8104.0).


STATISTICAL NOTES

OECD Standards
The data in the publication OECD Main Science and Technology Indicators are collected and presented in line with standard OECD methodology for R&D statistics entitled The Measurement of Scientific and Technological Activities: Proposed Standard Practice for Surveys of Research and Experimental Development - Frascati Manual 2002 (OECD).

International comparability
Though all OECD countries generally collect and report in line with the Frascati Manual, some detailed national specifications may vary from OECD standards. These differences are generally too small to affect the general indicators quoted in OECD Main Science and Technology Indicators. The main exceptions can be found in Annex 1 of this publication.



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