8104.0 - Research and Experimental Development, Businesses, Australia, 2007-08 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/09/2009   
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BUSINESS EXPENDITURE ON R&D (BERD)


INDUSTRY

In 2007-08, the largest contributors to BERD were Manufacturing ($4,305 million or 30%), Mining ($3,283 million or 23%) and Professional, scientific and technical services ($2,230 million or 16%).

Of all industries, Mining and Manufacturing reported the largest absolute growth from 2006-07, increasing their expenditure on R&D by $510 million (18%) and $469 million (12%) respectively. Other industries to record large increases included Financial and insurance services (up $313 million or 28%) and Professional, scientific and technical services (up $233 million or 12%).

BERD, by selected industries(a)
Graph: BERD, by selected industries(a)



EMPLOYMENT SIZE

In 2007-08, businesses with 200 or more employees made the largest contribution to BERD ($10,040 million or 70%), followed by those with 20-199 employees ($2,753 million or 19%). Making the smallest contribution to BERD were businesses with 0-4 employees ($477 million or 3%) and those with 5-19 employees ($1,109 million or 8%). Businesses with 200 or more employees contributed 71% ($1,302 million) of the total growth in BERD between 2006-07 and 2007-08.


TYPE OF EXPENDITURE

As in previous years, BERD in 2007-08 was mainly comprised of Current expenditure ($13,620 million or 95% of BERD). Current expenditure was in turn comprised of $8,690 million in Labour costs and $4,929 million in Other current expenditure. Capital expenditure in 2007-08 totalled $760 million.

The industries with the highest level of Labour costs as a proportion of its BERD were Retail trade and Education and training (both at 60%), while the lowest were reported in Mining and Electricity, gas, water and waste services (at 14% and 18% respectively).

Manufacturing ($272 million) and Mining ($155 million) combined made up more than half (56%) of total Capital expenditure.


SOURCE OF FUNDS

The Business sector was the main source of BERD funds in 2007-08, with $13,389 million (93%) coming from Own funds and $350 million (2%) from Other business. Commonwealth government and Overseas sources were the next largest funders of BERD, at $390 million (3%) and $192 million (1%) respectively.

Health care and social assistance and Professional, scientific and technical services industries had the lowest proportions of self-funded research, at 71% and 80% respectively.


LOCATION OF EXPENDITURE

Locations in New South Wales and Victoria continued to record the highest levels of BERD in 2007-08, at $4,371 million (30%) and $3,949 million (28%) respectively. Western Australia reported the largest absolute growth in BERD (up $532 million) from 2006-07, followed by Victoria (up $521 million) and New South Wales (up $361 million).

BERD, by location of expenditure(a)
Graph: BERD, by location of expenditure(a)


While Manufacturing accounted for the largest proportion of BERD in a majority of locations, in 2007-08 the dominant industry in Western Australia was Mining (making up 61% of WA BERD).

Western Australia (1.66%) and Victoria (1.47%) reported the highest percentages of BERD as a proportion of Gross State Product (GSP). Western Australia also experienced the largest increase in its BERD/GSP ratio from 2006-07, rising from 1.49% to 1.66%.

BERD, by location of expenditure - proportion of GSP(a)

NSW
Vic.
Qld
SA
WA
Tas.
NT
ACT
%
%
%
%
%
%
%
%

2005-06
1.08
1.27
0.74
1.00
1.35
0.45
0.82
0.50
2006-07
1.19
1.38
0.85
1.23
1.49
0.52
0.78
0.43
2007-08
1.21
1.47
0.91
1.27
1.66
0.62
0.52
0.43

(a) See Explanatory Note 2 for details.



TYPE OF ACTIVITY

In 2007-08, the majority of BERD was directed into Experimental development ($8,966 million or 62%) and Applied research ($4,615 million or 32%). Experimental development showed the largest absolute growth between 2006-07 and 2007-08, increasing by $1,234 million.


FIELD OF RESEARCH

Accounting for 81% of BERD in 2007-08 were the research fields of Engineering ($7,921 million or 55%) and Information and computing sciences ($3,678 million or 26%).


SOCIO-ECONOMIC OBJECTIVE (SEO)

BERD on SEO Manufacturing ($4,522 million) was more than double that of any other SEO and accounted for 31% of BERD in 2007-08. Mineral resources (excluding energy resources) and Energy SEOs reported the next highest levels of BERD, at $2,057 million and $2,021 million respectively.


FOREIGN OWNERSHIP

Wholly Australian owned businesses made the largest contribution to BERD at $6,353 million, however businesses with Greater than 50% foreign ownership reported the largest absolute growth from 2006-07, up $629 million.

BERD, by level of foreign ownership(a)

2006-07
2007-08
$'000
$'000

Wholly Australian owned (0%)
5 756 655
6 353 105
Greater than 0% and less than 10%
704 332
747 608
10% to 50%
1 505 686
2 067 485
Greater than 50%
4 582 209
5 211 698
Total
12 548 882
14 379 896

(a) A definition of foreign ownership was not provided to survey respondents and data were accepted as reported.