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8101.0 - Innovation and Technology Update (Newsletter), Dec 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2007   
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3. RESEARCH & EXPERIMENTAL DEVELOPMENT (R&D) STATISTICS


3.1 Highlights from the Latest R&D Surveys
3.1.1 Research and Experimental Development, All Sector Summary, Australia, 2004-05
3.1.2 Research and Experimental Development, Businesses, Australia, 2004-05
3.1.3 Research and Experimental Development, Government and Non-Profit Organisations, Australia, 2004-05
3.1.4 Research and Experimental Development, Higher Education Organisations, Australia, 2004
3.2 R&D Statistics User Forum
3.3 Australian Standard Research Classification (ASRC) Revision


3.1 HIGHLIGHTS FROM THE LATEST R&D SURVEYS

3.1.1 RESEARCH AND EXPERIMENTAL DEVELOPMENT, ALL SECTOR SUMMARY, AUSTRALIA, 2004-05

The most recent Research and Experimental Development, All Sector Summary, Australia, 2004-05 (cat. no. 8112.0) publication was released on 11 October 2006. This biennial publication summarises R&D sectors output as Gross Expenditure on R&D (GERD). The main findings included;

Business (54%) and higher education (27%) were the biggest contributors to Australia's $15.8 billion outlay on research and experimental development (R&D) in 2004-05, which was an increase of 19% or $2.6 billion since 2002-03.

GERD was highest in New South Wales ($5.0 billion) and Victoria ($4.3 billion), while Western Australia recorded the fastest growth in GERD since 2002-03 (up 57% to $1.7 billion).

The major sources of GERD funding in 2004-05 were business (52% or $8.1 billion) and the Commonwealth government (36% or $5.6 billion). These two sources also recorded the largest increases since 2002-03 (both up by more than 21%).

If you wish to know more about R&D statistics, please call Kirsty Rothenbury on (08) 9360 5382.


3.1.2 RESEARCH AND EXPERIMENTAL DEVELOPMENT, BUSINESSES, AUSTRALIA, 2004-05

The publication Research and Experimental Development, Businesses, Australia, 2004-05 (cat. no. 8104.0) was released on 28 August 2006.

The collection is published annually and the main findings of the 2004-05 survey included;

Business spending on R&D in Australia has increased for the sixth year in a row in 2004-05, to a total of $8.4 billion. This is an increase of 7% in real terms, since 2003-04.

Between 2003-04 and 2004-05, business expenditure on R&D as a proportion of GDP increased from 0.91% to 0.95%. However, Australia remained below the OECD average of 1.53%.

Businesses in the mining industry reported the largest growth in R&D expenditure, increasing by $227 million or 23%. Other major contributors to R&D expenditure were the manufacturing ($3.5 billion or 41%) and property and business services industries ($1.6 billion or 19%).

If you wish to know more about R&D statistics, please call Kirsty Rothenbury on (08) 9360 5382.

3.1.3 RESEARCH AND EXPERIMENTAL DEVELOPMENT, Government and Private Non-Profit Organisations, Australia, 2004-05

The most recent Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2004-05 (cat. no. 8109.0) publication was released on 6 October 2006. The main findings of this biennial survey included;

Expenditure by Government organisations on R&D (GOVERD) in 2004-05 was $2,550.7 million. This represented an increase of 2.8% in current price terms over 2002-03.

As in previous years, the majority of GOVERD (66.7% or $1,701.0 million) was sourced from Own funds. The next largest source of R&D funds was Other Commonwealth government ($287.2 million or 11.3%).

Private non-profit organisation expenditure on R&D (PNPERD) in Australia in 2004-05 was $493.2 million, representing an increase of 37.2% in current price terms over 2002-03.

If you wish to know more about R&D statistics, please call Kirsty Rothenbury on (08) 9360 5382.


3.1.4 RESEARCH AND EXPERIMENTAL DEVELOPMENT, Higher Education Organisations, Australia, 2004

The publication Research and Experimental Development, Higher Education Organisations, Australia, 2004 (cat. no. 8111.0) was released on 27 July 2006. The main findings of this biennial survey included;
  • Higher education expenditure on R&D (HERD) in Australia in 2004 was $4,283 million. This represented an increase of 24.9% in current price terms and 18.0% in real terms over 2002.
  • HERD as a proportion of GDP increased from 0.44% in 2002 to 0.48% in 2004.
  • Between 2002 and 2004, New South Wales recorded the largest growth in HERD in absolute terms (up $200.0 million or 20.3%), while Western Australia recorded the fastest rate of growth (up 49.4% or $146.2 million).

If you wish to know more about R&D statistics, please call Kirsty Rothenbury on (08) 9360 5382.
3.2 R&D STATISTICS USER FORUM

The second meeting of the R&D Statistics Users Forum was held in the ABS on 26 October 2006. The meeting was attended by members from the following external stakeholder organisations:

Department of Industry, Tourism and Resources (DITR), Department of Education, Science and Training (DEST), Productivity Commission, CSIRO, Australian Vice Chancellors Committee (AVCC), Australian National University (ANU) and Department of Communication, Information Technology and Arts (DCITA)

Issues discussed in the meeting include:

1. Highlights of the latest R&D surveys (Please see Section 3.1 for details).

2. Proposed changes to the 2005-06 R&D survey: Key changes include the inclusion of Agriculture, forestry and fishery industry within the scope of the R&D survey and exclusion of businesses that spend below $100,000 a year on R&D from the survey scope.

3. Proposed revision of the 1998 Australian Standard Research Classification: The purpose of the revision is to make the classification up-to-date, rationalise classification categories, and to address stakeholder concerns such as provider burden, data quality, international comparability etc.

4. R&D capitalisation in the System of National Accounts: The main issue was the recommendation of the OECD Advisory Expert Group to treat R&D expenditure as Gross Fixed Capital Formation. The ABS is considering OECD’s recommendations in the context of its economic survey programs and the compilation of Australian National Accounts.


3.3 AUSTRALIAN STANDARD RESEARCH CLASSIFICATION (ASRC 1998) REVISION

The Australian Standard Research Classification is used in ABS surveys for collection and publication of statistics on R&D activities undertaken in Australia. The current classification was published in 1998 and is being revised to make it more up-to-date and to address provider concerns and user requirements. The revised classification is expected to be available in early 2008.

As part of the revision, the ABS has set up a reference group comprising members from key R&D stakeholder organisations to advise the ABS project team on strategic and technical issues. The first meeting of the reference group was held on 14 December 2006. Representatives from the reference forum member organisations briefed the group on their use of the current classification and their requirements in the revised classification. Members also discussed guidelines for the classifications revision and the project implementation plan. During the first phase of the project (Jan - March 2007) the project team has planned consultations with the wider R&D stakeholder community.


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