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 2000-01, manufacturing industry accounted for 45% of R&D expenditure by all industries (down from 49% in 1999-2000).
As table 19.23 shows, between 1999-2000 and 2000-01 R&D expenditure within the manufacturing industry increased by $168m (8.4%). Of the 12 manufacturing industries, eight increased their R&D expenditure. The largest increases were in Textile, clothing, footwear and leather manufacturing (by 50%), Photographic and scientific equipment manufacturing (by 41%), Motor vehicle and part and other transport equipment manufacturing (by 15%), and Other manufacturing (by 15%). These increases were partly offset by decreases in four industries, including Printing, publishing and recorded media, and Non-metallic mineral product manufacturing, each down by 13%.
Industries contributing the most to manufacturing R&D expenditure in 2000-01 were Motor vehicle and part and other transport equipment manufacturing (22%), Electronic and electrical equipment and appliance manufacturing (18%), and Petroleum, coal, chemical and associated product manufacturing (18%). Together, these industries accounted for 57% of total R&D expenditure of the manufacturing industry.
Table 19.24 shows that, of the manufacturing industry's total R&D expenditure for 2000-01, 9% was on capital expenditure, 45% on labour costs and 46% on other current expenditure. The Motor vehicle and part and other transport equipment manufacturing industry contributed the largest expenditure on R&D for the manufacturing industry in terms of capital expenditure (17%), labour costs (20%), and other current expenditure (24%).
Science and innovation discusses expenditure on and human resources devoted to R&D activity for all sectors of the economy.
19.23 EXPENDITURE ON RESEARCH AND DEVELOPMENT
|
| 1998-99 | 1999-2000 | 2000-01 |
| $m | $m | $m |
|
Food, beverage and tobacco manufacturing | 209 | 184 | 205 |
Textile, clothing, footwear and leather manufacturing | 21 | 18 | 27 |
Wood and paper product manufacturing | 84 | 102 | 100 |
Printing, publishing and recorded media | 20 | 15 | 13 |
Petroleum, coal, chemical and associated product manufacturing | 324 | 377 | 385 |
Non-metallic mineral product manufacturing | 53 | 47 | 41 |
Metal product manufacturing | 296 | 227 | 199 |
Motor vehicle and part and other transport equipment manufacturing | 379 | 410 | 473 |
Photographic and scientific equipment manufacturing | 107 | 128 | 180 |
Electronic and electrical equipment and appliance manufacturing | 399 | 342 | 385 |
Industrial machinery and equipment manufacturing | 116 | 131 | 140 |
Other manufacturing | 19 | 20 | 23 |
Total manufacturing | 2,027 | 2,002 | 2,170 |
|
Source: Research and Experimental Development, Businesses, Australia (8104.0). |
19.24 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2000-01
|
| Capital expenditure | Labour costs(a) | Other current expenditure | Total |
Industry | $m | $m | $m | $m |
|
Food, beverage and tobacco manufacturing | 27.5 | 90.6 | 87.4 | 205.5 |
Textile, clothing, footwear and leather manufacturing | 2.7 | 12.7 | 11.3 | 26.7 |
Wood and paper product manufacturing | 7.1 | 25.7 | 67.2 | 100.0 |
Printing, publishing and recorded media | 1.0 | 6.8 | 4.8 | 12.7 |
Petroleum, coal, chemical and associated product manufacturing | 29.2 | 170.9 | 184.5 | 384.6 |
Non-metallic mineral product manufacturing | 4.0 | 15.4 | 21.5 | 40.9 |
Metal product manufacturing | 31.1 | 74.7 | 92.7 | 198.5 |
Motor vehicle and part and other transport equipment manufacturing | 32.0 | 198.9 | 242.2 | 473.2 |
Photographic and scientific equipment manufacturing | 11.7 | 98.8 | 69.0 | 179.6 |
Electronic and electrical equipment and appliance manufacturing | 22.5 | 195.0 | 167.7 | 385.1 |
Industrial machinery and equipment manufacturing | 20.6 | 72.7 | 46.6 | 139.9 |
Other manufacturing | 3.5 | 12.9 | 7.2 | 23.5 |
Total manufacturing | 192.8 | 975.1 | 1,002.1 | 2,170.1 |
|
(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, 2000-01 (8104.0). |