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8104.0 - Research and Experimental Development, Businesses, Australia, 2011-12 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 06/09/2013   
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BUSINESS HUMAN RESOURCES DEVOTED TO R&D


INDUSTRY

In 2011-12, the industry divisions of Manufacturing and Professional, scientific and technical services were the main contributors to total human resources devoted to R&D, at 18,196 (28%) and 15,686 (24%) person years of effort (PYE) respectively.

BUSINESS HUMAN RESOURCES DEVOTED TO R&D, Top 10 industries (a)
Graph: BUSINESS HUMAN RESOURCES DEVOTED TO R&D, Top 10 industries (a)


Financial and insurance services (up 6,467 PYE or 109%) was the largest contributor to the overall increase in human resources devoted to R&D in 2011-12. This industry also showed the largest increase in proportional share of total PYE (up eight percentage points to 19%).

In contrast, Manufacturing (down 240 PYE or 1%) recorded the largest decrease in human resources devoted to R&D, and showed the largest decrease in proportional share of total PYE (down five percentage points to 28%).

As described in the Type of Expenditure section of Business Expenditure on R&D (BERD), a portion of the overall increase in human resources devoted to R&D in 2011-12 can be attributed to businesses moving to utilising persons employed by the business, rather than using contractors for R&D work. The provision of contract services to a business does not involve the supply of staff, but rather the delivery of a product, and therefore does not contribute to the businesses own person years of effort estimate.


EMPLOYMENT SIZE

For 2011-12, person years of effort increased with each successive employment size group. Businesses with 200 or more employees and businesses with 20-199 employees accounted for more than three quarters (84%) of total human resources devoted to R&D in 2011-12 (37,737 PYE or 58% and 16,957 PYE or 26% respectively). An increase in human resources was recorded across all four employment size groups, with the largest increase recorded for businesses with 200 or more employees (up 6,318 PYE or 20%). This employment size group also had the largest increase in proportional share of total PYE, up two percentage points from 56% in 2010-11.

Conversely, businesses with 5-19 employees recorded the largest decrease in proportional share of total PYE, down two percentage points from 14% in 2010-11.

The comparability over time of estimates by employment size group may be affected by moves in classification between reference periods. See the Comparability of Estimates Over Time section of the Technical Note for more information.


TYPE OF RESOURCE

Researchers were again the most dominant type of human resource devoted to R&D in 2011-12, accounting for 32,439 PYE or 50% of total PYE. Compared to 2010-11, Researchers recorded the largest increase in PYE (up 4,449 PYE or 16%), and their proportional share of total PYE remained the same.

Technicians were the only type of resource to record a decrease in proportional share of PYE, down one percentage point from 34% in 2010-11.


FOREIGN OWNERSHIP

In 2011-12, wholly Australian owned businesses made the largest contribution to total human resources devoted to R&D, at 40,429 PYE or 62% of total PYE; an increase of 7,573 PYE (23%) from 2010-11. Wholly Australian owned businesses also recorded the largest increase in proportional share of total PYE, up four percentage points to 62% in 2011-12.

Businesses with greater than 50% foreign ownership were the only group to record a decrease in PYE from 2010-11 (down 406 PYE or 2%) and a decrease in proportional share of total PYE (down five percentage points from 31%).

BUSINESS HUMAN RESOURCES DEVOTED TO R&D, by level of foreign ownership(a)

HUMAN RESOURCES DEVOTED TO R&D
PROPORTION OF TOTAL HUMAN RESOURCES DEVOTED TO R&D
2009-10(b)
2010-11(b)
2011-12
2009-10(b)
2010-11(b)
2011-12
PYE
PYE
PYE
%
%
%

Wholly Australian owned (0%)
33 714
32 856
40 429
58
58
62
Greater than 0% and less than 10%
3 075
2 658
3 308
5
5
5
10% to 50%
4 192
3 646
4 225
7
6
7
Greater than 50%
16 955
17 350
16 944
29
31
26
Total(c)
57 936
56 511
64 906
100
100
100

(a) A definition of foreign ownership was not provided in the survey and data were accepted as reported.
(b) Some 2009-10 and 2010-11 data have been revised. See the Revisions section of the Technical Note for details.
(c) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.



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