EXPENDITURE ON R&D

Expenditure by private non-profit organisations on R&D (PNPERD) in 2006-07 was $606.3 million. From 2004-05, PNPERD increased by 27% in current price terms and 16% in chain volume terms. (See paragraph 18 of the Explanatory Notes for information regarding the interpretation of chain volume measures.)

PNP RESOURCES DEVOTED TO R&D(a)
			1996-97	1998-99	2000-01	2002-03	2004-05	2006-07
Expenditure on R&D
	Current prices	$m	186	225	289	360	r479	606
	Chain volume measures(b)	$m	252	289	342	403	501	580
Human resources devoted to R&D		PYE	2 351	2 551	2 791	3 117	r3 845	4 596
r revised
(a) Refer to the Revisions section of the Technical Note regarding comparability of estimates over time.
(b) The reference year for chain volume measures is 2005-06.

Over the ten years to 2006-07, PNPERD increased at a two-yearly rate of 45% in current price terms and 26% in chain volume terms.

Subsequent expenditure figures and supporting commentary relate to current price terms.


Proportion of GDP

PNPERD as a proportion of GDP increased to 0.06% in 2006-07, from 0.05% in 2004-05.

Type of expenditure

In 2006-07, Current expenditure accounted for 88% ($532.2 million) of total PNPERD. Current expenditure increased by $91.4 million or 21%, between 2004-05 and 2006-07.

Over the same period, R&D related Capital expenditure also increased, by $36.0 million or 95%. Capital expenditure on Land, buildings and other structures in 2006-07 was more than triple that in 2004-05.


Source of funds

The main sources of R&D funds for PNP organisations in 2006-07 were Commonwealth government ($187.0 million or 31% of PNPERD) and Own funds ($156.9 million or 26%). Of all sources of funds, Commonwealth government showed the largest dollar increase since 2004-05 (up $49.3 million), followed by State and local government (up $33.1 million).


Location of expenditure

Accounting for the highest levels of PNPERD in 2006-07 were locations in Victoria ($330.0 million or 54%), and New South Wales ($196.2 million or 32%). These locations also recorded the highest dollar increases in PNPERD between 2004-05 and 2006-07, up $58.0 million for Victoria and $41.1 million for New South Wales. Over the same period, PNPERD in Queensland locations more than doubled.

Victoria reported the highest PNPERD as a proportion of gross state product (GSP) at 0.13% in 2006-07, followed by New South Wales at 0.06%. Since 2004-05, PNPERD/GSP ratios have remained relatively stable for all states and territories.

PNPERD as a proportion of GSP(a), by location
	NSW	Vic.	Qld	SA	WA	Tas.	NT	ACT
	%	%	%	%	%	%	%	%
2004-05	0.05	0.12	0.01	-	0.03	-	np	0.02
2006-07	0.06	0.13	0.02	-	0.02	np	np	np
- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) See paragraph 2 of the Explanatory Notes for details.

Type of activity

In 2006-07, PNPERD was primarily directed into Strategic basic research ($248.8 million or 41%) and Applied research ($230.3 million or 38%). Expenditure on these types of activity also recorded the largest dollar increases from 2004-05, up by $62.4 million and $40.6 million respectively.


Research field

In 2006-07, Medical and health sciences and Biological sciences continued to be the fields accounting for the largest shares of PNPERD, at $457.9 million (or 76%) and $97.7 million (or 16%) respectively.


Socio-economic objective (SEO)

As in 2004-05, the majority of PNPERD was directed into the SEO division of Society (at 98%). The Health component of Society comprised 94% of the division and 92% of total PNPERD.

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