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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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NOTES


INTRODUCTION

This release presents summary statistics on Research and Experimental Development (R&D) undertaken by Australian businesses. Data used in the compilation of these statistics were provided to the ABS by businesses in respect of the financial year ended 30 June 2008.

Users should refer to the Explanatory and Technical Notes for further contextual information when interpreting these results.


ADDITIONAL DATA

In addition to the tables presented in this release, more detailed data (including time series data) are available in spreadsheet format (data cubes) on the ABS website <www.abs.gov.au>. See the Downloads page for this issue (cat. no. 8104.0).


CHANGES IN THIS ISSUE

For the first time, field of research and socio-economic objective data presented in this issue have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat.no. 1297.0). Previous releases of this issue used the Australian Standard Research Classification (ASRC).

Previous cycle estimates have not been recompiled using the new classification. As such, field of research and socio-economic objective tables included in this release present current cycle data only and on an ANZSRC basis. However, previous cycle data are available in the data cubes on an ASRC basis.


DATA QUALITY

When interpreting the results in this release it is important to take into account factors that may affect the reliability of estimates. These factors are described in the Non-sampling error section in the Technical Note.

This release includes revised data for the 2005-06 and 2006-07 reference periods. Refer to the Revisions section of the Technical Note for further detail.


INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Kirsty Rothenbury on Perth (08) 9360 5382.


SUMMARY COMMENTARY


BUSINESS RESOURCES DEVOTED TO RESEARCH AND EXPERIMENTAL DEVELOPMENT (R&D)

Business expenditure on R&D (BERD) in Australia during 2007-08 was $14,380 million. BERD increased by 15% in current price terms and 9% in chain volume terms from 2006-07. (See Explanatory Notes 22 and 23 for information regarding the interpretation of chain volume measures.)

Business human resources devoted to R&D in 2007-08 totalled 49,114 person years of effort (PYE), an increase of 6% from 2006-07.

Business resources devoted to R&D

2003-04
2004-05
2005-06
2006-07
2007-08

Expenditure on R&D
Current prices $m
7 770
8 676
r10 434
r12 549
14 380
Chain volume measures(a) $m
9 087
9 810
11 339
13 175
14 380
Human resources devoted to R&D PYE
37 430
40 458
r43 686
r46 327
49 114

r revised
(a) The reference year for chain volume measures is 2007-08. See Explanatory Notes 22 and 23 for details.


Over the five years to 2007-08, BERD increased at an average annual rate of 17% in current price terms and 12% in chain volume terms.

Business expenditure on R&D
Graph: Business expenditure on R&D


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


BERD and gross domestic product (GDP)

BERD as a proportion of GDP increased between 2006-07 and 2007-08, moving from 1.20% to 1.27%.

BERD, as a proportion of GDP(a)
Graph: BERD, as a proportion of GDP(a)


The following table shows BERD/GDP ratios for Organisation for Economic Co-operation and Development (OECD) countries. Although Australia's BERD/GDP ratio for 2007-08 remained below the OECD average of 1.59%, its growth from 2006-07 was greater than the OECD average growth.

BERD/GDP RATIOS OF OECD COUNTRIES(a)(b)

2003-04
2004-05
2005-06
2006-07
2007-08
%
%
%
%
%

Japan
2.40
2.38
2.54
2.63
2.68
Sweden
2.86
2.66
2.62
2.79
2.66
Korea
2.00
2.18
2.29
2.49
2.65
Finland
2.42
2.42
2.47
2.46
2.51
Switzerland
na
2.14
na
na
na
United States of America
1.84
1.79
1.83
1.89
1.93
Austria
na
1.53
1.70
1.73
1.81
Germany
1.76
1.74
1.72
1.77
1.78
Denmark
1.78
1.69
1.68
1.66
1.66
Iceland
1.46
na
1.43
1.59
1.50
Luxembourg
1.47
1.43
1.35
1.43
1.36
France
1.36
1.36
1.30
1.32
1.31
Belgium
1.31
1.29
1.25
1.30
1.30
Australia(c)
0.92
0.97
1.08
1.20
1.27
United Kingdom
1.11
1.06
1.06
1.08
1.15
Canada
1.16
1.18
1.15
1.11
1.05
Netherlands
1.01
1.03
1.01
1.02
1.03
Czech Republic
0.76
0.79
0.91
1.03
0.98
Ireland
0.79
0.81
0.82
0.88
0.88
Norway
0.98
0.87
0.82
0.82
0.88
Spain
0.57
0.58
0.60
0.67
0.71
Portugal
0.24
0.28
0.31
0.47
0.61
Italy
0.52
0.52
0.55
0.55
0.55
New Zealand
0.48
na
0.48
na
0.51
Hungary
0.34
0.36
0.41
0.48
0.49
Turkey
0.11
0.12
0.20
0.22
0.29
Mexico
0.14
0.20
0.23
na
na
Slovak Republic
0.32
0.25
0.25
0.21
0.18
Poland
0.15
0.16
0.18
0.18
0.17
Greece
0.18
0.17
0.18
0.17
0.16
Total OECD
1.50
1.48
1.51
1.56
1.59

na not available
(a) Ranked by 2007-08 BERD/GDP ratio.
(b) BERD/GDP ratios for some countries are projected or estimated as per the OECD source table.
(c) The Australian ratios appearing in this table may differ from those published in Main Science and Technology Indicators, 2009/1, OECD due to inclusion of more recently available and revised data.
Source: Main Science and Technology Indicators, 2009/1, OECD



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