Research and Experimental Development, Higher Education Organisations, Australia methodology

The statistics presented in this release have been compiled from data collected in the Survey of Research and Experimental Development, Higher Education Organisations. The Survey of R&D, Higher Education is a biennial collection based on a calendar year reference period.

The Organisation for Economic Co-operation and Development (OECD) definition of the higher education sector encompasses universities and other institutions of post-secondary education regardless of their source of finance or legal status. The scope of the ABS R&D survey is based on the OECD definition but excludes colleges of Technical and Further Education. A total of 42 Australian higher education institutions were in scope and reported for this collection.

Intramural expenditure, which is defined as expenditure for R&D performed by in scope institutions during the reference period irrespective of the source of funds, is included in the survey. Expenditure made outside the institution but in support of intramural R&D is included. For further information, refer to the OECD Frascati Manual 2015. Intramural expenditure includes research performed by institutions:

• as a participant in unincorporated Cooperative Research Centres (CRCs); and 
• on behalf of other legal entities where the institution maintains full management and control of the project.

R&D performed on an institution's campus, where the R&D is controlled by other legal entities, is excluded from the survey. The R&D performed by these entities will be in scope of the relevant R&D sector (business, government or private non-profit).

R&D performed overseas by Australian higher education institutions is included. Due to the very small amount of overseas expenditure, it is not separately identified.

R&D, as collected by the ABS, is defined in accordance with the Organisation for Economic Co-operation and Development (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".

For a more comprehensive interpretation of the definition of R&D, see the Australian and New Zealand Standard Research Classification (ANZSRC), 2020 or 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. 

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 and consistent interpretation and reporting of these data by applying consistent processing methodologies. Refer to Non-Sampling Error and Revisions in the Data release section for more information.

Type of Activity, Fields of Research and Socio-Economic Objectives statistics presented in this release have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2020. 

Previous releases of this issue used the Australian and New Zealand Standard Research Classification (ANZSRC), 2008. 

Location of expenditure relates to the main campus or head office location of the reporting institution, except for the Australian Defence Force Academy (ADFA), which is part of the University of New South Wales but is shown against the Australian Capital Territory.

Total cost of R&D undertaken is equivalent to direct expenditure plus indirect (overhead) expenditure. 

Institutions were required to indicate whether overheads had been included in reported data. In cases where data did not include overheads, an estimate was calculated by either:

• the institution identifying the value of R&D related overhead costs to be apportioned across relevant projects/schools; or 
• the ABS, using a methodology agreed to by institutions and Universities Australia.

The most recent GDP and GSP values available were used to calculate the R&D expenditure/GDP and R&D expenditure/GSP ratios presented in this issue. These values are referenced in the table below and have been revised from those used to calculate ratios in previous issues. 

GDP is estimated by the ABS according to the international standards System of National Accounts, 2008 (2008 SNA) and is not directly comparable to GDP for countries where these standards have not been applied.

While statistics presented in this issue relate to the 2022 calendar year, financial year GDP and GSP data are used to ensure consistency with ratios published in other ABS R&D releases which use a financial year as the reporting period.

The chain volume measures appearing in this release are annually reweighted chain Laspeyres indexes referenced to the current price values in a chosen reference year (currently 2022). They can be thought of as current price values re-expressed in (i.e. based on) the prices of the previous year and linked together to form a continuous time series. They are formed in a multi-stage process of which the major steps are described in Chapter 6 of the Australian System of National Accounts: Concepts, Sources and Methods.

With the implementation of the 2008 SNA, deflators used to calculate the chain volume measure of expenditure on R&D were revised to better capture changes in the unit value of labour used in the production of R&D services, and to increase and refine the number of products included in the deflators. The revised deflators have been used for Higher Education R&D statistics since the 2008 survey cycle.

Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.

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 2022 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 Scope and coverage in the Data collection section for more information). The survey achieved a response rate of 100%.

Non-sampling errors may arise as a result of errors in the reporting, recording or processing of data. These errors can be introduced through inadequacies in the questionnaire, treatment of non-response, inaccurate reporting by respondents, errors in the application of survey procedures, incorrect recording of answers, and errors in data capture and processing.

The extent to which non-sampling error affects the results is difficult to measure. Every effort is made to minimise non-sampling error by careful design and testing of the collection instrument, the use of efficient operating procedures and systems, and the use of appropriate methodologies.

When interpreting the statistics in this release, the reliability and comparability of the estimates may be affected by the following specific non-sampling errors:

• Many institutions provided estimates due to a lack of separately recorded data on R&D activity. 
• Data were self-classified by institutions to Type of Activity, Fields of Research and Socio-Economic Objectives at the time of reporting. Some institutions may have experienced difficulty in classifying their R&D projects. The ABS makes every effort to ensure correct interpretation and reporting of these data by applying consistent processing methodologies. 
• The estimation method for R&D related overhead costs varied across institutions and reference periods.

In the event of new information being identified and revisions made, revised figures will be indicated by a footnote. Revisions must be taken into consideration when interpreting results, particularly when comparing estimates over time.

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.
• Type of Activity, Fields of Research and Socio-Economic Objectives data have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2020. Prior to 2020, 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-19 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.

Further important contextual information, to be considered when interpreting the results presented in this release, is provided in the Data collection and Glossary sections.

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.

Relevant OECD publications include:

Main Science and Technology Indicators

The ABS acknowledges the ongoing contribution made by the higher education institutions selected for the Survey of R&D, Higher Education.

ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated; without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.

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

As well as the statistics included in this and related publications, the ABS may have other relevant data available on request. Inquiries should be made to the ABS Consultancy Service on 1300 135 070 or email information.consultancy@abs.gov.au.