1301.0 - Year Book Australia, 2002  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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Contents >> Science and Innovation >> Costs of undertaking innovation

The total amount spent by manufacturing businesses on technological innovation during 1996-97 was estimated at $3.9b. About half of this was spent on research and development ($2.0b). A further $1.1b was spent on tooling up, industrial engineering and start up.

On average, businesses with expenditure on innovation activities spent $296,100 on innovation, or $6,300 per employee. As would be expected, expenditure on innovation increased with size of business; expenditure ranged from an average of $61,000 for small businesses to $4.1m for large businesses. The average innovation expenditure per employee showed the reverse trend, ranging from $8,900 for small businesses to $5,600 for large businesses. Similarly, the ratio of innovation expenditure to the total turnover of the business fell as size of business increased. In the case of small businesses undertaking innovation expenditure, 7% of their total turnover on average was spent on innovative activities, while large businesses spent only 2% of their total turnover on such activities (table 25.17).


25.17 COSTS OF UNDERTAKING TECHNOLOGICAL INNOVATION(a) - 1996-97

Business size
Turnover
per employee

$’000
Innovation costs
per employee

$’000
Innovation costs as
a proportion of turnover

%

Small(b)
132
9
7
Medium(c)
185
7
4
Large(d)
266
6
2
All
238
6
3

(a) Restricted to businesses with innovation expenditure.
(b) Fewer than 20 employees.
(c) 20 to 1999 employees.
(d) 200 or more employees.

Source: Innovation in Manufacturing, Australia (8116.0).



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