Research and Experimental Development, Businesses, Australia

Latest release

Expenditure and human resources devoted to Research and Experimental Development (R&D) carried out by businesses in Australia

Reference period
2023-24 financial year
Release date and time
22/08/2025 11:30am AEST

Key statistics

  • During 2023-24, business expenditure on R&D was $24,410 million, up 18% from 2021-22.
  • Business human resources devoted to R&D totalled 104,172 person years of effort.
  • The Professional, scientific and technical services industry recorded the largest increase in R&D expenditure, up $2,200 million or 31.5%.
  • 42% of total business R&D expenditure was in the research field of Information and computing sciences.

Business resources devoted to Research and Experimental Development (R&D)

 Unit2017-182019-202021-222023-24
Expenditure on R&D - Current prices$m17,43818,17120,64224,410
Expenditure on R&D - Chain volume measures(a)$m19,85320,38222,14124,410
Human resources devoted to R&DPYE74,99177,72491,414104,172
  1. The reference year for chain volume measures is 2023-24. Refer to the Chain volume measures section of the Methodology page for details.

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

BERD as a proportion of Gross Domestic Product (GDP) was 0.9% in 2023-24, unchanged since 2017-18.

Business expenditure on R&D (BERD)

  1. Industries are ranked by 2023-24 BERD.

The three industries with the greatest contribution to BERD were:  

  • Professional, scientific and technical services ($9,171 million or 38%)
  • Manufacturing ($5,047 million or 21%)
  • Financial and insurance services ($3,479 million or 14%) 

Together, these three industries accounted for nearly three-quarters (73%) of total BERD.

BERD and Gross State Product (GSP)

The state or territory with the highest level of BERD as a proportion of GSP was New South Wales (1.17%). The state or territory recording the largest increase in the BERD/GSP ratio was South Australia (up 0.16 percentage points), followed by New South Wales (up 0.11 percentage points) and Tasmania (up 0.09 percentage points). 

BERD, by location of expenditure - proportion of GSP(%)(a)
 NSWVICQLDSAWATASNTACT
2023-241.171.150.590.680.430.850.170.39
2021-221.061.140.560.520.420.76(b)0.210.41
2019-201.031.040.620.650.450.780.180.44
2017-181.141.030.550.760.620.600.130.58
  1. Refer to the Gross Domestic Product (GDP) and Gross State Product (GSP) section of the Methodology page for details.
  2. Estimate has a relative standard error greater than 50% and is considered too unreliable for general use.

 

Location of expenditure

Location of expenditure relates to the region in which the R&D activity was performed. Refer to the Location of expenditure section of the Methodology page for more information.

  • New South Wales and Victoria continued to have the highest levels of BERD, $9,630 million (39% of total BERD) and $6,953 million (28% of total BERD).
  • In 2023-24, BERD in New South Wales recorded the largest increase in dollar terms, up $2,130 million, followed by Victoria, up $1,004 million.
  • By location, the largest decrease for Australian businesses undertaking research and development was overseas, down $505 million (29%) to $1,209 million, followed by the Northern Territory, down $11 million (17%) to $57 million.

BERD, State and territory percentage change(a)

Loading map...

This interactive map examines the percentage change in business expenditure on research and experimental development between the 2021-22 and 2023-24 financial years by State and Territory which is based on the boundaries released in the ASGS.

Footnotes
  1. The percentage change for Overseas location, which is not included in the map, was a decrease of 29.5%.

Fields of Research and Socio-Economic Objectives

Fields of Research (FoR) classifies R&D expenditure based on the area of knowledge and methodologies used in R&D.

  1. Divisions are ranked by 2023-24 BERD.
  2. The 2021-22 estimate has a relative standard error between 25% and 50% and should be used with caution.

The top six Fields of Research combined represent 92% of BERD in 2023-24.

FoR data for Division 40 – Engineering and Division 46 – Information and computing sciences were collected and compiled at the Group level to provide a more granular output.

  1. Groups are ranked by 2023-24 BERD.

The top six FoR Groups combined accounted for 67% of the total Engineering Division.  

  1. Groups are ranked by 2023-24 BERD.
  2. The 2021-22 estimate has a relative standard error between 25% and 50% and should be used with caution.

The top six FoR Groups combined accounted for 83% of the total for the Information and computing sciences Division. 

Socio-Economic Objectives (SEO) classifies R&D expenditure based on the area in which the purpose or outcome of the R&D is perceived.

  1. Divisions are ranked by 2023-24 BERD.

The Socio-Economic Objectives of Information and communication services, Manufacturing, Health and Commercial services and tourism accounted for nearly three-quarters (71%) of BERD in 2023-24. 

In 2023-24, Information and communication services replaced Manufacturing as the top Socio-Economic Objective.

Gross expenditure on R&D (GERD)

Gross expenditure on R&D (GERD) represents the total expenditure devoted to R&D by the Business, Government, Higher education and Private non-profit sectors. The estimates for the Government, Private non-profit and Higher education sectors are modelled. Refer to the Modelled estimates of GERD section in the Methodology page for more information.

In 2023-24, GERD for Australia is estimated at $45,082 million, an increase of $6,331 million (16%) over a two-year period.

  1. These estimates have been modelled.
  2. Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.

GERD and Gross Domestic Product (GDP)

GERD as a percentage of GDP was 1.69% in 2023-24, an increase of 0.03 percentage points since 2021-22.

GERD, as a proportion of GDP(%)
 2015-162017-182019-202021-222023-24
GERD/GDP1.881.791.801.661.69

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