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 1998-99, manufacturing industry accounted for slightly less than 50% of R&D expenditure by all industries (down from 54% in 1997-98).
As table 19.21 shows, between 1998-99 and 1999-2000 R&D expenditure within the manufacturing industry remained virtually unchanged. Of those subdivisions which decreased their R&D expenditure, the most significant falls were $69m (23%) in Electronic and electrical equipment and appliance manufacturing, and $58m (14%) in Metal product manufacturing. Of those subdivisions which increased their R&D expenditure, the most significant rises were $62m (18%) in Petroleum, coal, chemical and associated product manufacturing and $40m (11%) in Motor vehicle and part and other transport equipment manufacturing.
Industries contributing the most to manufacturing R&D expenditure in 1999-2000 were Motor vehicle and part and other transport equipment manufacturing (20%), Petroleum, coal, chemical and associated product manufacturing (20%) and Electronic and electrical equipment and appliance manufacturing (17%). Together, these industries accounted for 57% of total R&D expenditure of the manufacturing industry sector.
Table 19.22 shows that, of the manufacturing sector's total R&D expenditure for 1999-2000, 10% was on capital expenditure, 44% on labour costs and 46% on other current expenditure. Petroleum, coal, chemical and associated product manufacturing accounted for the highest share (37%) of total capital expenditure on R&D by manufacturing industries.
While labour costs accounted for only 44% of total R&D expenditure by manufacturing industries overall in 1999-2000, they accounted for more than 50% of R&D expenditure in several manufacturing industries.
19.21 EXPENDITURE ON RESEARCH AND DEVELOPMENT, Manufacturing Businesses |
|
Industry | 1997-98
$m | 1998-99
$m | 1999-2000
$m |
|
Food, beverage and tobacco manufacturing | 181 | 208 | 186 |
Textile, clothing, footwear and leather manufacturing | 21 | 20 | 17 |
Wood and paper product manufacturing | 117 | 86 | 104 |
Printing, publishing and recorded media | 17 | 20 | 15 |
Petroleum, coal, chemical and associated product manufacturing | 328 | 351 | 413 |
Non-metallic mineral product manufacturing | 70 | 53 | 49 |
Metal product manufacturing | 369 | 296 | 227 |
Motor vehicle and part and other transport equipment manufacturing | 441 | 380 | 420 |
Photographic and scientific equipment manufacturing | 95 | 107 | 127 |
Electronic and electrical equipment and appliance manufacturing | 427 | 400 | 342 |
Industrial machinery and equipment manufacturing | 126 | 115 | 132 |
Other manufacturing | 36 | 19 | 20 |
Total manufacturing | 2,229 | 2,055 | 2,052 |
|
Source: Research and Experimental Development, Businesses, Australia (8104.0). |
19.22 TYPE OF EXPENDITURE ON RESEARCH AND DEVELOPMENT, Manufacturing Businesses - 1999-2000 |
|
Industry | Capital expenditure
$m | Labour
costs(a)
$m | Other current expenditure
$m | Total
$m |
|
Food, beverage and tobacco manufacturing | 24.8 | 80.7 | 80.5 | 186.0 |
Textile, clothing, footwear and leather manufacturing | 1.2 | 8.0 | 7.7 | 16.8 |
Wood and paper product manufacturing | 13.5 | 26.1 | 64.3 | 103.9 |
Printing, publishing and recorded media | 0.7 | 9.4 | 4.6 | 14.7 |
Petroleum, coal, chemical and associated product manufacturing | 75.7 | 160.3 | 177.3 | 413.3 |
Non-metallic mineral product manufacturing | 5.6 | 20.0 | 23.2 | 48.9 |
Metal product manufacturing | 14.5 | 89.4 | 122.9 | 226.8 |
Motor vehicle and part and other transport equipment manufacturing | 23.8 | 173.9 | 222.3 | 420.0 |
Photographic and scientific equipment manufacturing | 7.4 | 73.0 | 47.0 | 127.4 |
Electronic and electrical equipment and appliance manufacturing | 21.7 | 187.3 | 133.3 | 342.4 |
Industrial machinery and equipment manufacturing | 11.9 | 74.36 | 45.7 | 131.9 |
Other manufacturing | 2.8 | 11.7 | 5.5 | 20.0 |
Total manufacturing | 203.6 | 914.2 | 934.3 | 2,052.1 |
|
(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 (8104.0). |