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1301.0 - Year Book Australia, 2005  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 21/01/2005   
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Contents >> Manufacturing >> Research and development expenditure

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 and processes. ABS surveys of R&D are based on a complete enumeration of businesses identified by the ABS as likely R&D performers. Businesses mainly engaged in agriculture, forestry and fishing are excluded.

Total R&D expenditure by the manufacturing industry increased by $301m (12%) in 2002-03 (table 18.26). Industries contributing the most to manufacturing R&D expenditure in 2002-03 were: motor vehicle and part and other transport equipment manufacturing (26%); petroleum, coal, chemical and associated product manufacturing (17%); metal product manufacturing (12%); and electronic and electrical equipment and appliance manufacturing (12%). Together, these industries accounted for 67% of total R&D expenditure by the manufacturing industry and 32% of the total R&D expenditure by all industries.


18.26 EXPENDITURE ON RESEARCH AND DEVELOPMENT

2000-01
2001-02
2002-03
Manufacturing industry subdivision
$m
$m
$m

Food, beverage and tobacco manufacturing
202
231
234
Textile, clothing, footwear and leather manufacturing
27
22
28
Wood and paper product manufacturing
100
84
98
Printing, publishing and recorded media
17
16
15
Petroleum, coal, chemical and associated product manufacturing
395
430
492
Non-metallic mineral product manufacturing
41
74
86
Metal product manufacturing
221
257
343
Motor vehicle and part and other transport equipment manufacturing
473
555
731
Photographic and scientific equipment manufacturing
220
279
304
Electronic and electrical equipment and appliance manufacturing
430
423
329
Industrial machinery and equipment manufacturing
108
134
150
Other manufacturing
21
22
20
Total manufacturing
2,255
2,528
2,829

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


Of manufacturing industry total R&D expenditure in 2002-03, 7% was on capital expenditure, 45% on labour costs and 48% on other current expenditure (table 18.27). The motor vehicle and part and other transport equipment manufacturing industry contributed the largest expenditure on R&D by the manufacturing industry for each of capital expenditure (29%), labour costs (26%), and other current expenditure (25%). Manufacturing accounted for 45% of the capital expenditure, 48% of the labour costs, and 47% of other current expenditure on R&D by all industries.


18.27 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2002-03

Capital expenditure
Labour costs(a)
Other current expenditure
Total
Manufacturing industry subdivision
$m
$m
$m
$m

Food, beverage and tobacco manufacturing
19
122
93
234
Textile, clothing, footwear and leather manufacturing
6
13
9
28
Wood and paper product manufacturing
4
26
68
98
Printing, publishing and recorded media
1
8
5
15
Petroleum, coal, chemical and associated product manufacturing
36
192
265
492
Non-metallic mineral product manufacturing
15
33
38
86
Metal product manufacturing
20
113
211
343
Motor vehicle and part and other transport equipment manufacturing
61
333
337
731
Photographic and scientific equipment manufacturing
14
162
128
304
Electronic and electrical equipment and appliance manufacturing
21
181
126
329
Industrial machinery and equipment manufacturing
10
75
65
150
Other manufacturing
2
11
8
20
Total manufacturing
208
1,269
1,353
2,829

(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, 2002-03 (8104.0).


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