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1301.0 - Year Book Australia, 2003  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2003   
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Contents >> Manufacturing >> Research and experimental development

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).


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