Research and Experimental Development, Higher Education Organisations, Australia methodology

Staff engaged in supporting R&D, who are defined as having an academic classification by the Department of Education and Training.

Original work undertaken primarily to acquire new knowledge with a specific application in view. It is undertaken either to determine possible uses for the findings of basic research or to determine new ways of achieving some specific and predetermined objectives.

As a source of R&D funding, this includes a list of schemes that provide competitive research grants to higher education providers. Funding in this category includes both Commonwealth and Other/Non-Commonwealth Australian Competitive Grants schemes.

As a source of R&D funding, this includes R&D grants (excluding ACGR schemes) and payments for R&D projects funded by or carried out on behalf of businesses (irrespective of whether private or government owned).

Expenditure on the acquisition of fixed tangible assets such as land, buildings, vehicles, plant, machinery and equipment which is attributable to R&D activity.

Expenditure on direct labour costs, scholarships, materials, fuels, rent and hiring, repairs and maintenance, data processing, etc. and the proportion of expenditure on general services and overheads which is attributable to R&D activity.

As a source of R&D funding, this includes research specific donations and bequests from non-profit organisations and Australian individuals.

Systematic work, using existing knowledge gained from research or practical experience, which is directed to producing new materials, products, devices, policies, behaviours or outlooks; to installing new processes, systems and services; or to improving substantially those already produced or installed.

The FOR classification allows R&D activity to be categorised according to the methodology used in the R&D, rather than the activity of the unit performing the R&D or the purpose of the R&D. The FOR reflects the field in which the research was undertaken and is based on the processes and techniques used.

As a source of R&D funding, this includes funds from:

• the Commonwealth Government (other than targeted research funding), including the Australian National University Institute of Advanced Studies funds; and the portion of other revenue sourced from the Commonwealth spent on R&D but not identified as 'Competitive Research Grants' or 'Other commonwealth government'; and
• fees and charges, income relating to Higher Education Contribution Scheme liabilities, income from non-research specific donations, bequests and foundations, investment income, reversions from provisions accounts, loans drawn down, income from the institutions commercial operations and from sale of products or assets.
   

The effort of researchers, postgraduate students and other staff directly involved with R&D activity. Overhead staff (e.g. administrative and general service employees such as personnel officers, janitors, etc.) whose work indirectly supports R&D are excluded.

Expenditure relating to: wages and salaries; overtime earnings; penalty payments; shift allowances; employer contributions into superannuation; fringe benefits and payroll taxes; severance, termination and redundancy payments; workers' compensation premiums/costs; provisions for employee entitlements; salaries and fees of directors and executives; retainers and commissions of persons who received a retainer; bonuses; annual and other types of paid leave.

Expenditure on land, buildings and other structures acquired for R&D purposes including testing grounds, sites for laboratories and pilot plants, landscaping, site preparation works, fit-out costs for new buildings and major improvements and modifications.

The region in which the institution is located (i.e. the main campus or head office location of the reporting institution, with the exception of the Australian Defence Force Academy (ADFA), which is part of the University of New South Wales but is shown against the Australian Capital Territory).

As a source of R&D funding, this includes R&D grants and payments for R&D projects funded by or carried out on behalf of non-Australian or overseas entities.

As a source of R&D funding, this represents any other Australian sources of funds not included in the other categories.

Expenditure on office and other equipment (including capitalised computer software licence fees), furnishings, vehicles, plant, machinery and equipment.

As a source of R&D funding, this includes all other targeted research funding from Commonwealth agencies such as CRC grants (but excluding ACGR schemes) and payments for R&D projects funded by or carried out on behalf of the Commonwealth Government. Other examples of funding included are:

• Australian Postgraduate Awards (APA)
• International Postgraduate Research Scholarships (IPRS)
• Joint Research Engagement (JRE)
• Research Infrastructure Block Grants (RIBG)
• Research Training Scheme (RTS)
• Sustainable Research Excellence (SRE)
   

All other non-staff expenditures including: materials, fuels and other inputs; rent, leasing and hiring expenses; repair and maintenance expenses; payments to outside organisations for use of specialised testing facilities or for analytical work, engineering or other specialised services in support of R&D projects carried out by the university; software for own account produced as part of R&D; academic services purchased from outside and any other current expenses which are not captured by labour costs or scholarships. Payments for patent searches and for purchases of technical know-how are excluded.

Technicians, skilled and unskilled employees, secretarial and clerical staff directly associated with R&D activity.

One person year of effort is equal to a full-time employee whose time is wholly devoted to R&D for a whole year.

Postgraduate research students supporting R&D, who are defined as engaged in a Doctorate by research or a Masters by research by the Department of Education and Training.

Experimental and theoretical work undertaken to acquire new knowledge without looking for long term benefits other than the advancement of knowledge.

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 extends to modifications to existing products/processes. R&D activity ceases and pre-production begins when work is no longer experimental.

Comprises expenditure by the university on scholarships for research higher degrees.

The SEO classification allows R&D activity to be categorised according to the intended purpose or outcome of the research, rather than the processes or techniques used in order to achieve this objective. The SEO reflects the dominant beneficiary or beneficiaries of the research output.

As a source of R&D funding, this includes R&D grants (excluding ACGR schemes) and payments for R&D projects funded by or carried out on behalf of state and local government.

Experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas in the expectation of practical discoveries. It provides the broad base of knowledge necessary for the solution of recognised practical problems.

This classification allows R&D activity to be categorised according to the type of research effort, namely, pure basic research, strategic basic research, applied research and experimental development.

Statistics presented in this release have been compiled from data collected by the Australian Bureau of Statistics (ABS) from higher education institutions in the Survey of Research and Experimental Development (R&D), Higher Education Organisations. The data were collected under the authority of the Census and Statistics Act 1905.

For information about the institutional environment of the ABS, including its legislative obligations, financing and governance arrangements, and mechanisms for scrutiny of ABS operations, please see ABS Institutional Environment.

This release presents statistics on R&D undertaken by Australian higher education institutions in respect of the calendar year ended 31 December 2016.

R&D statistics produced by the ABS enable the nature and distribution of R&D activity in Australia to be monitored and analysed for policy formulation, allocation of funds and determination of research priorities.

Since the release of the 2008-09 Australian System of National Accounts, R&D has been treated as capital formation. This resulted from the implementation of the new international standards System of National Accounts, 2008 (2008 SNA) and represents a change in treatment of R&D (as intermediate consumption) from SNA 1993.

The ABS aims to produce high quality data from its research and experimental development collections, while minimising the reporting burden on higher education institutions. To achieve this, extensive effort is put into survey and questionnaire design, collection procedures and processing.

The Survey of R&D, Higher Education is a census of in-scope institutions (refer to the Scope and Coverage section of the Explanatory Notes). The survey achieved a response rate of 100%.

For information about non-sampling errors, please refer to the Technical Note under the Explanatory Notes tab.

There are no other data sources with which ABS higher education R&D data can be directly compared. However, some observations can be made which suggest the survey outputs give a reasonable indication of real world expectations and events. For example, trends in data aligning with expectations due to changes in the availability of research funds to universities.

While the ABS seeks to maximise consistency and comparability over time by minimising changes to the survey, sound survey practice requires ongoing development to maintain the integrity of the data, its relevance to the changing needs of users and the efficiency of the collection.

In addition to non-sampling errors, factors which may affect the comparability of 2016 estimates with those of previous cycles are described below:

• Improved record keeping by higher education institutions in 2016.
• From the 2008 cycle, Type of Activity, Fields of Research and Socio-economic Objective data have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no. 1297.0). Prior to this, data were based on the Australian Standard Research Classification (ASRC). The implementation of updated classifications in the 2000 and 2008 reference periods represent breaks in the relevant time series.
   

R&D as collected by the ABS is defined in accordance with the OECD standard as "creative and systematic work undertaken in order to increase the stock of knowledge - including knowledge of humankind, culture and society - and to devise new applications of available knowledge".

The ABS Survey of R&D, Higher Education also uses classifications specific to R&D. Results presented in this release are based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no. 1297.0).

Data providers report and self classify R&D survey information based on their interpretation of OECD and ABS definitions and classifications. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data by applying consistent processing methodologies. See the Non-Sampling Error and Revisions sections of the Technical Note for further information.

Further important contextual information, to be considered when interpreting the results presented in this release, is provided under the Explanatory Notes tab (including the Technical Note and Glossary).

Additionally, for a more comprehensive interpretation of the definitions and classifications relating to R&D activity, refer to:

• the OECD publication Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development
• the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no. 1297.0).
   

In addition to main features (which include key findings commentary) resulting from the Survey of R&D, Higher Education, detailed data (in spreadsheet format) are included on the ABS website free of charge. Refer to the Downloads tab for these data.

If the information you require is not available as a standard product, enquiries can be made by contacting the National Information and Referral Service on 1300 135 070.