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, Skills and Employment.

Original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific, practical aim or objective.

As a source of R&D funding, this includes R&D grants determined by applying the Department of Education, Skills and Employment self-assessment system. Funding in this category is split into Commonwealth and non-Commonwealth grants.

As a source of R&D funding, this includes R&D grants (excluding Australian Competitive Grants) 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, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.

The FoR classification enables R&D to be categorised according to common knowledge domains and/or methodologies used in the R&D. It describes the nature of the research being performed and reflects the area of knowledge discovery.

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

• the Commonwealth Government (other than targeted research funding), including 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 institution’s 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 Australian Competitive Grants) and payments for R&D projects funded by or carried out on behalf of the Commonwealth Government. Other examples of funding included are:

• Research Training Program (RTP)

• Research Support Program (RSP)

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, Skills and Employment.

Basic research carried out for the advancement of knowledge, without seeking long-term economic or social benefits or making any effort to apply the results to practical problems or to transfer the results to sectors responsible for their application.

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 enables R&D to be categorised according to the intended purpose or outcome of the R&D as perceived by the researcher (or data provider). It describes purpose categories that may benefit or impact from the R&D.

As a source of R&D funding, this includes R&D grants (excluding Australian Competitive Grants) 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.

The ToA classification enables 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 Australian 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 2020 calendar year.

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 for more information). The survey achieved a response rate of 100%.

For information about non-sampling errors, please refer to the Technical Note.

The ABS seeks to maximise consistency and comparability over time by minimising changes to the survey. However, 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 current estimates with those of previous cycles are described below:

• Improved record keeping by higher education institutions.

• From the 2020 cycle, Type of Activity and Fields of Research data have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2020. Prior to this, these data were based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 and the Australian Standard Research Classification (ASRC). The implementation of updated classifications in the 2000, 2008 and 2020 reference periods represent breaks in the relevant time series.

• Socio-Economic Objectives data were not collected in 2020. This was part of the ABS commitment to reduce the load on data providers during the COVID pandemic.

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), 2020.

Respondents 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 interpretation and reporting of these data by applying consistent processing methodologies.

Further important contextual information, to be considered when interpreting the results presented in this release, is provided under the Explanatory notes, 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 The Measurement of Scientific and Technological Activities: Proposed Standard Practice for Surveys of Research and Experimental Development - Frascati Manual 2015; and
• the Australian and New Zealand Standard Research Classification (ANZSRC), 2020.

In addition to the main features, data (in spreadsheet format) are included on the ABS website.

For inquiries about these and related statistics, contact the Customer Assistance Service via the ABS website Contact Us page. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.