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1301.0 - Year Book Australia, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006   
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Contents >> Chapter 18 - Manufacturing >> Research and development expenditure

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 $386m (13%) in 2003-04 (table 18.20). Industries contributing the most to manufacturing R&D expenditure in 2003-04 were: Motor vehicle and part and other transport equipment manufacturing (26%); Petroleum, coal, chemical and associated product manufacturing (18%); Electronic and electrical equipment and appliance manufacturing (12%); and Metal product manufacturing (10%). Together, these industries accounted for 66% of total R&D expenditure by the manufacturing industry and 30% of the total R&D expenditure by all industries.

18.20 EXPENDITURE ON RESEARCH AND DEVELOPMENT

2001-02
2002-03
2003-04
Manufacturing industry subdivision
$m
$m
$m

Food, beverage and tobacco manufacturing
231
237
260
Textile, clothing, footwear and leather manufacturing
22
28
41
Wood and paper product manufacturing
84
98
126
Printing, publishing and recorded media
18
17
26
Petroleum, coal, chemical and associated product manufacturing
430
517
584
Non-metallic mineral product manufacturing
74
87
97
Metal product manufacturing
256
342
345
Motor vehicle and part and other transport equipment manufacturing
555
731
868
Photographic and scientific equipment manufacturing
279
305
333
Electronic and electrical equipment and appliance manufacturing
429
362
389
Industrial machinery and equipment manufacturing
134
165
201
Other manufacturing
24
21
24
Total manufacturing
2,537
2,908
3,294

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


Of manufacturing industry total R&D expenditure in 2003-04, 8%
was on capital expenditure, 43% on labour costs and 49% on other current expenditure (table 18.21). 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 (30%), labour costs (26%), and other current expenditure (26%). Manufacturing accounted for 51% of the capital expenditure, 45% of the labour costs, and 45% of other current expenditure on R&D by all industries.

18.21 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT - 2003-04

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

Food, beverage and tobacco manufacturing
31
117
113
260
Textile, clothing, footwear and leather manufacturing
7
16
18
41
Wood and paper product manufacturing
5
34
88
126
Printing, publishing and recorded media
n.p.
12
n.p.
26
Petroleum, coal, chemical and associated product manufacturing
40
240
304
584
Non-metallic mineral product manufacturing
12
29
56
97
Metal product manufacturing
22
92
231
345
Motor vehicle and part and other transport equipment manufacturing
76
369
423
868
Photographic and scientific equipment manufacturing
21
178
134
333
Electronic and electrical equipment and appliance manufacturing
19
226
144
389
Industrial machinery and equipment manufacturing
12
97
92
201
Other manufacturing
n.p.
13
n.p.
24
Total manufacturing
251
1,421
1,622
3,294

Source: Research and Experimental Development, Businesses, Australia, 2003-04 (8104.0).


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