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1370.0 - Measures of Australia's Progress, 2010  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/09/2010   
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Productivity

Research and development(a)(b)
Graph Image for Research and development(a)(b)

Footnote(s): (a) Expediture as a proportion of GDP (b) Year ending 30 June.

Source(s): ABS Research and Experimental Development, All Sector Summary, Australia, 2006-07 (cat. no. 8112.0); ABS Australian System of National Accounts, 2008-09 (cat. no. 5204.0)

RESEARCH AND DEVELOPMENT

Research and development (R&D) increases the stock of knowledge and innovation in the economy. In 2006-07, gross expenditure on R&D within Australia was $21 billion.

Recent years have seen a gradual increase in the proportion of GDP spent on R&D activities. At its previous peak in 1996-97, the proportion of Australian GDP spent on R&D was 1.6%. In 2006-07, although still below the average ratio of OECD countries (2.3%), the proportion of Australian GDP spent on R&D had risen to 1.9%.

The business sector continued to provide the majority of funding for R&D in Australia. In 2006-07, 57% of all R&D funding came from the business sector, a rise from 48% in 1996-97. In contrast, the proportion of funding originating from federal and state governments declined, from 24% in 1996-97 to 14% in 2006-07. Contributions from other sources including universities and non-profit organisations, have remained stable at around 29%.

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