1377.0 - Measures of a knowledge-based economy and society, Australia, 2003  
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Contents >> Innovation and Entrepreneurship Indicators >> Total research & experimental development (R&D) expenditure by sector of performance

CHARACTERISTIC: RESEARCH BASE AND POTENTIAL FOR KNOWLEDGE CREATION

INDICATOR: Total research & experimental development (R&D) expenditure by sector of performance

Gross expenditure on R&D has increased by 18% from $10,417m in 2000-01 to $12,250m in 2002-03. With the exception of the state/territory government which remained steady, all sectors showed an increase in R&D expenditure compared with 2000-01.



GROSS EXPENDITURE ON R&D BY SECTOR OF PERFORMANCE


2000-01
2002-03

Sector
$'000
$'000

Business
4,982,558
5,978,614
Government
Commonwealth
1,404,831
1,531,310
State/territory
950,966
950,852
Higher education
2,789,753
3,429,597
Private non-profit
289,038
359,548

Total
10,417,146
12,249,921

Source: ABS Research and Experimental Development, All Sector Summary, Australia (cat. no. 8112.0).


GERD BY SECTOR
Graph: GERD by Sector
Source: ABS Research and Experimental Development, All Sector Summary, Australia (cat. no. 8112.0).



STATISTICAL NOTES

GERD
Gross expenditure on research and experimental development.

R&D definition
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

PROPORTION OF GERD PERFORMED BY SECTOR

Business enterprise
Higher education
Government
Private non-profit
2000-01
2002-03
2000-01
2002-03
2000-01
2002-03
2000-01
2002-03

Australia
47.8
48.8
26.8
28.0
22.6
20.3
2.8
2.9

Canada
59.8
(a)55.2
28.4
(a)32.8
11.5
(a)11.7
0.3
(a)0.2
Czech Republic
60.0
61.1
14.2
15.6
25.3
23.0
0.5
0.3
Finland
70.9
69.9
17.8
19.2
10.6
10.4
0.7
0.6
France
62.5
(a)62.2
18.8
(a)19.5
17.3
(a)16.9
1.4
(a)1.4
Germany
(b)70.3
(b)69.3
(b)16.1
(b)16.9
(b)(c)13.6
(b)(c)13.7
na
na
Iceland
(b)56.4
(b)57.2
(b)16.2
(b)16.1
(b)25.5
(b)24.5
(b)1.9
(b)2.2
Japan
71.0
74.4
14.5
13.9
9.9
9.5
4.6
2.1
Korea(d)
74.0
74.9
11.3
10.4
13.3
13.4
1.4
1.3
Poland
36.1
21.4
31.5
33.5
32.2
44.9
0.1
0.3
Portugal
(b)27.8
(b)34.4
(b)37.5
(b)35.6
(b)23.9
(b)19.8
(b)10.8
(b)10.2
Spain
53.7
54.6
29.6
29.8
15.8
15.4
0.9
0.2
United Kingdom
65.6
67.0
20.8
22.6
12.2
(b)8.9
1.5
1.5
United States
75.2
(a)70.2
13.7
(a)15.9
(e)7.0
(a)(e)8.8
4.1
(a)5.1

(a) Provisional.
(b) National estimate or projection adjusted, if necessary, by the Secretariat to meet OECD norms.
(c) Includes other classes
(d) Exluding R&D in social sciences and humanities.
(e) Federal or central government only.
na not available
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).

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 OECD Main Science and Technology Indicators.




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