Original work undertaken primarily to acquire new knowledge with a specific application in view. It is undertaken either to determine possible uses for the findings of basic research or to determine new ways of achieving some specific and predetermined objectives.
Expenditure on the acquisition of fixed tangible assets such as land, buildings, vehicles, plant, machinery and equipment which is attributable to R&D activity.
Commonwealth government funds
As a source of R&D funding, this includes R&D grants, and payments for R&D projects funded by or carried out on behalf of Commonwealth government organisations.
Expenditure on direct labour costs, materials, fuels, rent and hiring, repairs and maintenance, data processing etc. and the proportion of expenditure on general services and overheads which are attributable to R&D activity.
Systematic work, using existing knowledge gained from research or practical experience, which is directed to: producing new materials, products, devices, policies, behaviours or outlooks; to installing new processes, systems and services; or to improving substantially those already produced or installed.
Fields of Research (FOR)
The FOR classification allows R&D activity to be categorised according to the methodology used in the R&D, rather than the activity of the unit performing the R&D or the purpose of the R&D. The FOR reflects the field in which the research was undertaken and is based on the processes and techniques used.
Human resources devoted to R&D
The effort of researchers, technicians and other staff directly involved with R&D activity. Overhead staff (e.g. administrative and general service employees such as personnel officers, janitors, etc.) whose work indirectly supports R&D, are excluded.
Joint business/government funds
As a source of R&D funding, this includes R&D funding raised via industry levies.
Expenditure relating to: wages and salaries; overtime earnings; penalty payments; shift allowances; employer contributions into superannuation; fringe benefits and payroll taxes; severance, termination and redundancy payments; workers' compensation premiums/costs; provisions for employee entitlements; salaries and fees of directors and executives; retainers and commissions of persons who received a retainer; bonuses; annual and other types of paid leave.
The region(s) in which the business performed the R&D. This may not be the head office location of the business.
Other business funds
As a source of R&D funding, this includes payments for R&D projects funded by or carried out on behalf of other businesses located in Australia. Transfers from related entities are only included if they specifically relate to R&D being undertaken (by the reporting business) on behalf of the related entity.
Other capital expenditure
Expenditure on office and other equipment (including capitalised computer software licence fees), furnishings, vehicles, plant and machinery.
Other current expenditure
All other non-staff expenditures including: materials, fuels and other inputs; rent, leasing and hiring expenses; repair and maintenance expenses; payments to outside organisations for use of specialised testing facilities or for analytical work, engineering or other specialised services in support of R&D projects carried out by the business; commission and consultant expenses for research projects carried out by the business (except direct labour costs); software for own account produced as part of R&D; and the proportion of expenditure on general services and overheads which is attributable to R&D activity.
Skilled and unskilled employees, secretarial and clerical staff directly associated with R&D activity.
As a source of R&D funding, this includes grants, and payments for R&D projects funded by or carried out on behalf of overseas organisations. Transfers from related entities are only included if they specifically relate to R&D being undertaken (by the reporting business) on behalf of the related entity.
Includes R&D performed overseas, but controlled by the Australian business. This includes analytical work, engineering or other specialised services performed by another organisation which are part of an R&D project being performed by the Australian business.
As a source of R&D funding, this includes all funding for R&D sourced from the business itself, including: equity; borrowings; retained earnings; and non-R&D specific transfers from related entities.
Person years of effort (PYE)
One person year of effort is equal to a full-time employee whose time is wholly devoted to R&D for a whole year.
Pure basic research
Experimental and theoretical work undertaken to acquire new knowledge without looking for long term benefits other than the advancement of knowledge.
Creative and systematic work undertaken in order to increase the stock of knowledge - including knowledge of humankind, culture and society - and to devise new applications of available knowledge. For an activity to be considered R&D, the activity must be: Novel (aimed at new findings); Creative (based on original, not obvious, concepts and hypotheses); Uncertain (uncertain about the financial outcome); Systematic (planned and budgeted) and; Transferable and/or reproducible (lead to results that could be possibly reproduced). R&D activity extends to modifications to existing products/processes. R&D activity ceases and pre-production begins when work is no longer experimental.
Professionals engaged in the conception and/or development of new products/processes (including executives and directors involved in the planning or management of scientific and technical aspects of R&D projects; and software developers/programmers). They exclude executives and directors concerned primarily with budgets and human resources rather than project content.
Socio-economic Objective (SEO)
The SEO classification allows R&D activity to be categorised according to the intended purpose or outcome of the research, rather than the processes or techniques used in order to achieve this objective. The SEO reflects the dominant beneficiary or beneficiaries of the research output.
State and local government funds
As a source of R&D funding, this includes R&D grants, and payments for R&D projects funded by or carried out on behalf of state and local government organisations.
Strategic basic research
Experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas in the expectation of practical discoveries. It provides the broad base of knowledge necessary for the solution of recognised practical problems.
Those performing technical tasks in support of R&D activity, normally under the direction and supervision of a researcher. These tasks include preparation of experiments, taking records, preparation of charts and graphs, etc.
Type of activity
This classification allows R&D activity to be categorised according to the type of research effort, namely, pure basic research, strategic basic research, applied research and experimental development.