8112.0 - Research and Experimental Development, All Sector Summary, Australia, 2006-07
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 21/10/2008
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Over the ten years to 2006-07, GERD increased at a two-yearly rate of 28%.
Proportion of Gross Domestic Product (GDP)
GERD represented 2.01% of GDP in 2006-07, up from 1.78% in 2004-05. This was the first time that the ratio of GERD to GDP exceeded 2%.
The following table shows the GERD/GDP ratios for selected OECD countries. Australia's GERD/GDP ratio remained below the OECD average of 2.26% for 2006-07.
The Business sector expenditure accounted for the largest proportion of GERD in 2006-07 (57% or $12.0 billion) followed by the Higher education sector at 26% ($5.4 billion). These two sectors also recorded the strongest growth in absolute terms between 2004-05 and 2006-07 (up $3.4 billion and $1.1 billion respectively).
Percentage growth in GERD from 2004-05 was highest for the Business sector (up 39%) and lowest for the Government sector (up 19%).
In 2006-07, at the industry level, the largest values of GERD were reported for Education and training (over $5 billion), Professional, scientific and technical services ($4.0 billion) and Manufacturing ($3.8 billion).
Almost all GERD for Education and training and Manufacturing was spent by the Higher education and Business sectors, respectively. In contrast, three of the four sectors made significant contributions to GERD for Professional, scientific and technical services.
Type of expenditure
In 2006-07, Current expenditure accounted for 93% or $19.5 billion of GERD which, in turn, was comprised of $8.2 billion in Labour costs and $11.3 billion in Other current expenditure. Capital expenditure totalled $1.5 billion over the period.
Growth in GERD since 2004-05 was driven by a $4.5 billion increase in Current expenditure (90% of the overall growth), primarily due to the contribution of the Business sector (up $3.1 billion). Total Capital expenditure increased by $0.5 billion.
Source of funds
The major sources of funds for R&D in 2006-07 were Business ($11.7 billion) and Commonwealth government ($7.0 billion). These two sources also recorded the largest absolute increases from 2004-05 (up $3.3 billion and $1.4 billion respectively). While the Business sector was the primary recipient of Business funding across the sectors (at 96%), the Higher education sector received the most Commonwealth funding for R&D (at 66%).
Locations in New South Wales and Victoria accounted for over half (57%) of GERD in 2006-07 (at $6.2 billion and $5.8 billion respectively). These locations also recorded the highest levels of absolute growth in GERD from 2004-05, with increases of $1.4 billion for Victoria and $1.1 billion for New South Wales. However, Western Australia recorded the largest proportional growth over the period, increasing by 57%.
In 2006-07, GERD as a proportion of Gross State Product (GSP) was highest for the Australian Capital Territory (over 4%), South Australia (2.38%) and Victoria (2.34%). South Australia reported the largest growth in GERD as a proportion of GSP, increasing from 1.98% in 2004-05 to 2.38% in 2006-07.
Type of activity
In 2006-07, more than three quarters (78%) of GERD was directed into Applied research and Experimental development (approximately $8 billion each). These two types of activity also recorded the strongest absolute growth from 2004-05, each increasing by $2.0 billion. Pure basic research recorded the lowest absolute growth, increasing by $0.3 billion.
In 2006-07, Engineering and technology accounted for the largest share of GERD (38% or $8.0 billion), followed by Information, computing and communication sciences (17% or $3.6 billion) and Medical and health sciences (15% or $3.1 billion).
While the Business sector contributed almost 90% to GERD for Engineering and technology and Information, computing and communication sciences, its spending on Medical and health sciences was approximately half that of the Higher education sector.
Socio-economic objective (SEO)
In 2006-07, almost two thirds of GERD was directed into the Economic development SEO ($14.0 billion). The next most prevalent SEOs were Society (19% or $4.0 billion) and Environment (5% or $1.1 billion). Although the distribution of GERD across SEOs was largely unchanged from 2004-05, the proportion of GERD dedicated to Energy resources and Mineral resources SEOs increased by 2 percentage points each from 2004-05, while Manufacturing decreased by 3 percentage points.
HUMAN RESOURCES DEVOTED TO R&D
Human resources devoted to R&D in 2006-07 totalled 125,771 person years of effort (PYE), an increase of 8% (9,577 PYE) from 2004-05.
The majority of Human resources devoted to R&D in 2006-07 came from the Higher education (47%) and Business (37%) sectors combined. Together these sectors accounted for 96% (or 9,175 PYE) of the total increase in total Human resources devoted to R&D, between 2004-05 and 2006-07. Growth over the period was partly offset by a decrease of 349 PYE for the Government sector.
Similarly to GERD, the largest amounts of Human resources devoted to R&D were reported for Education and training (over 58,000 PYE), Professional, scientific and technical services (24,153 PYE) and Manufacturing (17,768 PYE).
Type of resource
Researchers accounted for over two thirds (69%) of the total Human resources devoted to R&D in 2006-07, at 87,269 PYE. Technician effort devoted to R&D increased by the largest proportion from 2004-05 (up 16% or 2,879 PYE), followed by Researchers (up 7% or 6,078 PYE). The growth in Technicians was dominated by the Business sector (up 2,704 PYE). The majority of growth (58%) in Researcher effort was attributable to the Higher education sector (up 3,516 PYE), however the Business sector (up 2,076 PYE) also made a notable contribution at 34%.
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