PNP EXPENDITURE ON R&D (PNPERD)

In 2008-09, PNPERD showed an increase of 22% in current price terms and 15% in chain volume terms.

Subsequent expenditure figures and supporting commentary relate to current price terms.


PNPERD and gross domestic product (GDP)

PNPERD as a proportion of GDP remained steady at approximately 0.06% between 2006-07 and 2008-09.

Type of expenditure

In 2008-09, Current expenditure accounted for 88% ($653 million) of total PNPERD. Labour costs, which totalled $372 million, was the largest component of Current expenditure and represented 50% of total PNPERD.

R&D related Capital expenditure was $91 million during 2008-09. Capital expenditure on Land, buildings and other structures increased by 63% to $51 million in 2008-09, accounting for 56% of Capital expenditure compared to 42% in 2006-07.


Source of funds

The main sources of funds for PNPERD in 2008-09 were Commonwealth government ($285 million or 38% of total PNPERD) and Own funds ($179 million or 24%). Of all sources of funds, Commonwealth government shows the largest dollar increase from 2006-07 (up $89 million) and the largest change in proportional share of PNPERD (up 6 percentage points).


Location of expenditure

Location of expenditure relates to the region in which R&D activity was performed; see also Explanatory Note 27. In 2008-09, almost 90% of PNPERD was in Victoria and New South Wales at $402 million (54%) and $259 million (35%), respectively. These locations also recorded the highest dollar increases in PNPERD from 2006-07, up $67 million and $65 million, respectively.

In 2008-09, PNPERD as a proportion of gross state product (GSP) was highest for Victoria at 0.13% in 2008-09, followed by NSW at 0.06%. Since 2006-07, PNPERD/GSP ratios have remained relatively stable for all states and territories.

PNPERD, by location of expenditure - proportion of GSP(a)
	NSW	Vic.	Qld	SA	WA	Tas.	NT	ACT
	%	%	%	%	%	%	%	%
2006-07	0.06	0.13	0.02	-	0.02	np	np	np
2008-09	0.06	0.14	0.01	-	0.03	np	np	np
- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) See Explanatory Note 28 for details.

Type of activity

Almost 70% of PNPERD in 2008-09 was directed into Applied research ($261 million or 35%) and Strategic basic research ($246 million or 33%).

PNPERD directed into Experimental development in 2008-09 ($164 million) was more than double that in 2006-07. The distribution of PNPERD across types of activity in 2008-09 changed significantly from 2006-07; Experimental development showed a 10 percentage point increase in its proportional share of PNPERD (up from 12% to 22%), while Strategic basic research showed a decrease of six percentage points (down from 39% to 33%).


Field of research (FOR)

In 2008-09, PNPERD devoted to the Medical and health sciences FOR represented 75% ($559 million) of the total. This was more than four times the next highest FOR, Biological sciences (at $117 million or 16% of PNPERD).


Socio-economic objective (SEO)

The majority (98%) of PNPERD in 2008-09 was directed into the SEO sector of Society. At $685 million, the Health division contributed 94% to the Society sector and 92% to total PNPERD.

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