1377.0 - Measures of a knowledge-based economy and society, Australia, 2003  
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Contents >> Innovation and Entrepreneurship Indicators >> Total research and experimental development (R&D) expenditure by sector of performance (business, government, private non-profit, higher education) as a proportion of Gross Domestic Product (GDP)

CHARACTERISTIC: RESEARCH BASE AND POTENTIAL FOR KNOWLEDGE CREATION

INDICATOR: Total research and experimental development (R&D) expenditure by sector of performance (business, government, private non-profit, higher education) as a proportion of Gross Domestic Product (GDP)

Gross expenditure on research and experimental development (GERD) increased as a percentage of GDP from 1.55% in 2000-01 to 1.62% in 2002-03. This increase was primarily due to increases over the period in business expenditure on research and experimental development (BERD) and higher education expenditure on R&D (HERD).


EXPENDITURE ON R&D AS A PERCENTAGE OF GDP


1999-00
2000-01
2001-02
2002-03
% GDP
% GDP
% GDP
% GDP

BERD
0.66
0.74
0.81
0.79
GOVERD
na
0.35
na
0.33
HERD
na
0.42
na
0.45
GERD(a)
na
1.55
na
1.62

na not available
(a) includes expenditure by the private non-profit sector.
Source: ABS Research and Experimental Development, All Sector Summary, Australia (cat. no. 8112.0), ABS Research and Experimental Development, Businesses, Australia (cat. no. 8104.0), ABS Research and Experimental Development, Higher Education Organisations, Australia (cat. no. 8111.0), ABS Research and Experimental Development, Government and Private Non-Profit Organisations, Australia (cat. no. 8109.0).


STATISTICAL NOTES

BERD
Business expenditure on research and experimental development.

GERD
Gross expenditure on research and experimental development.

GOVERD
Expenditure on research and experimental development carried out by government organisations.

HERD
Higher education expenditure on research and experimental development.

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 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.
The R&D Higher Education survey is conducted biennially and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by higher education organisations in Australia.
The R&D General government survey is conducted biennially and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by government organisations in Australia.
The R&D Private non-profit sector survey is conducted biennially and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by private non-profit organisations 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).

Government sector
This sector includes all Commonwealth, state and local government departments and authorities. The Government sector for the R&D survey excludes local government organisations because it is considered that their contribution to total R&D activity would be minimal. Public sector organisations mainly engaged in higher education (e.g. universities) are included in the Higher education sector whilst those mainly engaged in trading or financial activities are included in the Business sector.

Higher education sector
This sector includes all universities and other institutions of post-secondary education whatever their source of finance or legal status. The Higher education sector for the R&D survey excludes non-university post-secondary education institutions (e.g. Technical and Further Education colleges) because it is considered that their contribution to total R&D activity would be minimal.

Private non-profit sector
This sector includes private or semi-public incorporated organisations which are established with the intention of operating without making a profit.


INTERNATIONAL COMPARISONS
.

Gross expenditure on research and experimental development (GERD).


GERD/GDP RATIOS OF OECD COUNTRIES

2000-01
2002-03
%
%

Finland
3.40
3.46
Japan
2.99
3.12
Iceland
2.75
3.09
Korea
2.65
2.91
United States of America
2.72
2.67
Germany
2.49
2.52
France
2.18
2.20
Austria
1.86
1.93
Canada
1.92
1.91
United Kingdom
1.84
1.88
Australia
1.55
1.62
Czech Republic
1.33
1.30
Spain
0.94
1.03
Hungary
0.80
1.02
Portugal
0.80
0.93
Poland
0.66
0.59
Slovak Republic
0.65
0.58

Source: OECD Main Science and Technology Indicators, 2004/1 (http://www.oecd.org), ABS Research and Experimental Development, All Sector Summary, Australia (cat. no. 8112.0).


Business expenditure on research and experimental development (BERD).
BERD/GDP RATIOS OF OECD COUNTRIES

2000-01
2001-02
2002-03
%
%
%

Finland
2.41
2.42
2.41
Japan
2.12
2.26
2.32
Korea
1.96
2.23
2.18
United States of America
2.04
2.00
1.87
Iceland
1.55
1.80
1.77
Germany
1.75
1.75
1.75
Denmark
na
1.65
1.75
Belgium
1.48
1.60
1.64
France
1.36
1.41
1.37
United Kingdom
1.21
1.24
1.26
Canada
1.15
1.21
1.05
Netherlands
1.11
1.10
1.03
Norway
na
0.96
0.96
Australia
0.74
0.81
0.79
Czech Republic
0.80
0.78
0.79
Spain
0.50
0.50
0.56
Italy
0.53
0.55
0.54
Slovak Republic
0.43
0.43
0.37
Hungary
0.35
0.38
0.36
Portugal
0.22
0.27
0.32
Poland
0.24
0.23
0.13

Source: OECD Main Science and Technology Indicators, 2004/1 (http://www.oecd.org), ABS Research and Experimental Development, Businesses, Australia (cat. no. 8104.0).


Higher education expenditure on research and experimental development (HERD).

HERD/GDP RATIOS OF OECD COUNTRIES

2000
2002
%
%

Finland
0.61
0.66
Canada
0.55
0.63
Denmark
0.45
0.58
Iceland
0.45
0.50
Japan
0.43
0.43
France
0.41
0.43
Germany
0.40
0.43
Australia
0.42
0.45
United Kingdom
0.38
0.42
United States of America
0.37
0.42
Portugal
0.30
0.33
Spain
0.28
0.31
Korea
0.30
0.30
Hungary
0.19
0.26
Poland
0.21
0.20
Czech Republic
0.19
0.20
Slovak Republic
0.06
0.05

Source: OECD Main Science and Technology Indicators, 2004/1 (http://www.oecd.org), ABS Research and Experimental Development, Higher Education Organisations, Australia (cat. no. 8111.0).


Expenditure on research and experimental development carried out by government organisations (GOVERD).

GOVERD/GDP RATIOS OF OECD COUNTRIES

2000-01
2002-03
%
%

Iceland
0.70
0.76
Korea
0.35
0.39
France
0.38
0.37
Finland
0.36
0.36
Germany
0.34
0.35
Hungary
0.21
0.34
Australia
0.35
0.33
Czech Republic
0.34
0.30
Japan
0.30
0.30
Netherlands
0.25
0.26
Poland
0.21
0.26
United States of America
0.19
0.24
Italy
0.20
0.23
Canada
0.22
0.22
Denmark
0.29
0.18
Portugal
0.19
0.18
United Kingdom
0.22
0.17
Spain
0.15
0.16
Slovak Republic
0.16
0.15
Ireland
0.09
0.09
Switzerland
0.03
0.03

Source: OECD Main Science and Technology Indicators, 2004/1 (http://www.oecd.org), ABS Research and Experimental Development, Government and Private Non-Profit Organisations, Australia (cat. no. 8109.0).




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