The application of science and technological innovation to industrial processes influences the strength and competitiveness of industry by providing a basis for technological change and encouraging economic growth and development.
Australia has a range of statistics relating to science and innovation, many of which are compiled by the ABS. The key indicators relate to Australia's Research and Development (R&D) effort and the extent to which businesses innovate. Australia's statistics in this field are based on international standards, particularly the Frascati Manual developed by the Organisation for Economic Co-operation and Development (OECD), which is the basic international source of methodology for collecting and using R&D statistics.
A number of other indicators, notably patents and bibliometrics, are compiled by the Department of Industry, Science and Resources and are reported in the Commonwealth Government's Science and Technology Statement. These indicators have not been included in this chapter.