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1301.0 - Year Book Australia, 2002  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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Contents >> Manufacturing >> Research and experimental development

Research and experimental development (R&D) activity, in the business context, is defined as systematic investigation or experimentation involving innovation or technical risk, the outcome of which is new knowledge, with or without a specific practical application or new or improved products, processes, materials, devices or services. R&D activity also extends to modifications to existing products/processes. In 1998-99, manufacturing industry accounted for slightly less than 50% of R&D expenditure by all industries (down from 54% in 1997-98).

As table 19.21 shows, between 1998-99 and 1999-2000 R&D expenditure within the manufacturing industry remained virtually unchanged. Of those subdivisions which decreased their R&D expenditure, the most significant falls were $69m (23%) in Electronic and electrical equipment and appliance manufacturing, and $58m (14%) in Metal product manufacturing. Of those subdivisions which increased their R&D expenditure, the most significant rises were $62m (18%) in Petroleum, coal, chemical and associated product manufacturing and $40m (11%) in Motor vehicle and part and other transport equipment manufacturing.

Industries contributing the most to manufacturing R&D expenditure in 1999-2000 were Motor vehicle and part and other transport equipment manufacturing (20%), Petroleum, coal, chemical and associated product manufacturing (20%) and Electronic and electrical equipment and appliance manufacturing (17%). Together, these industries accounted for 57% of total R&D expenditure of the manufacturing industry sector.

Table 19.22 shows that, of the manufacturing sector's total R&D expenditure for 1999-2000, 10% was on capital expenditure, 44% on labour costs and 46% on other current expenditure. Petroleum, coal, chemical and associated product manufacturing accounted for the highest share (37%) of total capital expenditure on R&D by manufacturing industries.

While labour costs accounted for only 44% of total R&D expenditure by manufacturing industries overall in 1999-2000, they accounted for more than 50% of R&D expenditure in several manufacturing industries.


19.21 EXPENDITURE ON RESEARCH AND DEVELOPMENT, Manufacturing Businesses

Industry
1997-98

$m
1998-99

$m
1999-2000

$m

Food, beverage and tobacco manufacturing
181
208
186
Textile, clothing, footwear and leather manufacturing
21
20
17
Wood and paper product manufacturing
117
86
104
Printing, publishing and recorded media
17
20
15
Petroleum, coal, chemical and associated product manufacturing
328
351
413
Non-metallic mineral product manufacturing
70
53
49
Metal product manufacturing
369
296
227
Motor vehicle and part and other transport equipment manufacturing
441
380
420
Photographic and scientific equipment manufacturing
95
107
127
Electronic and electrical equipment and appliance manufacturing
427
400
342
Industrial machinery and equipment manufacturing
126
115
132
Other manufacturing
36
19
20
Total manufacturing
2,229
2,055
2,052

Source: Research and Experimental Development, Businesses, Australia (8104.0).


19.22 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT, Manufacturing Businesses - 1999-2000

Industry
Capital expenditure

$m
Labour
costs(a)

$m
Other current expenditure

$m
Total

$m

Food, beverage and tobacco manufacturing
24.8
80.7
80.5
186.0
Textile, clothing, footwear and leather manufacturing
1.2
8.0
7.7
16.8
Wood and paper product manufacturing
13.5
26.1
64.3
103.9
Printing, publishing and recorded media
0.7
9.4
4.6
14.7
Petroleum, coal, chemical and associated product manufacturing
75.7
160.3
177.3
413.3
Non-metallic mineral product manufacturing
5.6
20.0
23.2
48.9
Metal product manufacturing
14.5
89.4
122.9
226.8
Motor vehicle and part and other transport equipment manufacturing
23.8
173.9
222.3
420.0
Photographic and scientific equipment manufacturing
7.4
73.0
47.0
127.4
Electronic and electrical equipment and appliance manufacturing
21.7
187.3
133.3
342.4
Industrial machinery and equipment manufacturing
11.9
74.36
45.7
131.9
Other manufacturing
2.8
11.7
5.5
20.0
Total manufacturing
203.6
914.2
934.3
2,052.1

(a) Includes wages and salaries, payroll tax, payments to contract staff on the payroll, fringe benefits tax and workers’ compensation, holiday pay, long service leave payments, sick pay, and employer contributions to superannuation and pension schemes.

Source: Research and Experimental Development, Businesses, Australia (8104.0).


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