8104.0 - Research and Experimental Development, Businesses, Australia, 2017-18 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 20/09/2019   
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Business Resources Devoted to Research and Experimental Development (R&D)

During 2017-18, expenditure on R&D by Australian businesses was $17,438 million. Business expenditure on R&D (BERD) increased by 5% in current price terms and increased by 4% in chain volume terms from 2015-16.

Business human resources devoted to R&D in 2017-18 totalled 74,991 person years of effort (PYE), an increase of 6%.

BUSINESS RESOURCES DEVOTED TO R&D

2010-11
2011-12
2013-14
2015-16
2017-18

Expenditure on R&D
Current prices $m
18 007
18 321
18 849
16 659
17 438
Chain volume measures(a) $m
19 379
19 227
19 432
16 811
17 438
Human resources devoted to R&D PYE
56 511
64 906
78 839
70 467
74 991

(a) The reference year for chain volume measures is 2017-18. Refer to the Chain volume measures section of the Explanatory Notes for details.

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

BERD as a proportion of Gross Domestic Product (GDP) decreased from 1.0% in 2015-16 to 0.9% in 2017-18.


Business expenditure on R&D (BERD)

BERD, by top ten Industries (a)
Graph shows 2017-18 BERD top ten industries ranked in descending order: 1 Professional, scientific and technical services; 2 Manufacturing; 3 Financial and insurance services; 4 Mining; 5 Wholesale trade; 6 Information media and telecommunications; 7 Elec
(a) Ranked by 2017-18 BERD
  • The four industries with the greatest contribution to BERD are the Professional, scientific and technical services ($5,113 million or 29%), Manufacturing ($4,599 million or 26%), Financial and insurance services ($2,847 million or 16%) and Mining ($1,050 million or 6%). Together, these four industries accounted for more than three quarters (78%) of total BERD.
  • Professional, scientific and technical services recorded the largest increase (up $1,362 million or 36%) followed by Manufacturing (up $691 million or 18%). Conversely, Mining and Financial and insurance services recorded the largest decrease, down $826 million (44%) and $368 million (11%) respectively.


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 (1.13%). The ACT was the only location that showed an increase in the BERD/GSP ratio (up 0.30 percentage points to 0.55%). Western Australia showed the largest decrease (down 0.26 percentage points) from 0.87% to 0.61% over a two year period.

BERD, by location of expenditure - proportion of GSP(a)

NSW
Vic.
Qld
SA
WA
Tas.
NT
ACT
%
%
%
%
%
%
%
%

2017-18
1.13
1.06
0.55
0.74
0.61
0.57
0.12
0.55
2015-16
1.18
1.10
0.64
0.78
0.87
0.65
0.30
0.25

(a) Refer to the Gross Domestic Product (GDP) and Gross State Product (GSP) section of the Explanatory Notes for details.


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 Explanatory Notes for more information).
  • New South Wales and Victoria continued to have the highest levels of BERD, with $6,823 million (39% of total BERD) and $4,545 million (26% of total BERD) respectively.
  • BERD incurred Overseas recorded the largest increase in dollar terms, up $534 million (66%).
  • BERD in Western Australia showed the largest decrease down $490 million (24%), followed by Queensland down $43 million (2%).