8112.0 - Research and Experimental Development, All Sector Summary, Australia, 2008-09 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 11/10/2010   
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GLOSSARY

Applied research

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.

Business funds

As a source of R&D funding, this includes payments for R&D projects carried out on contract for businesses located within Australia. For the Business sector, it also includes all funding for R&D sourced from the business itself, including: equity; borrowings; retained earnings; and transfers from related entities.

Capital expenditure

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 goverment funds

As a source of R&D funding, this includes: R&D grants; and payments for R&D projects carried out on contract for Commonwealth government organisations. For the Commonwealth government subsector, it also includes all funding for R&D sourced from within the reporting organisation (i.e. own funds). For the Higher education sector, general university funds reported by the higher education institutions are also included as these are mainly sourced from the Commonwealth government.

Current expenditure

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 is attributable to R&D activity.

Experimental development

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.

Field 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.

Gross expenditure on R&D (GERD)

GERD is constructed by adding together the R&D expenditures of the four performing sectors: Business; Government; Higher education; and Private non-profit.

Gross human resources devoted to R&D

Gross human resources devoted to R&D is constructed by adding together the human resources devoted to R&D by the four performing sectors: Business; Government; Higher education; and Private non-profit.

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.

Labour costs

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.

Location

With the exception of the Higher education sector, this represents the region(s) in which the organisations performed the R&D (which may not be the head office location of the organisation). For the Higher education sector, this represents the main campus or head office location of the reporting institution, with the exception of the Australian Defence Force Academy (ADFA) which is shown against the Australian Capital Territory.

Other Australian funds

As a source of R&D funding, this includes: donations and bequests; joint government/business funding; and payments for R&D projects carried out on contract for private non-profit organisations. For the Private non-profit sector, it also includes all funding for R&D sourced from within the reporting organisation (i.e. own funds). For all sectors other than the Higher education sector, it includes payments for R&D projects carried out on contract for universities.

Other current expenditure

All other non-staff expenditures including those for: 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 organisation; commission and consultant expenses for research projects carried out by the organisation (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. For the Higher education sector, it includes expenditure on scholarships.

Other staff

Skilled and unskilled craftpersons, secretarial and clerical staff working on, or directly associated with, R&D activity. For the Higher education sector, Other staff also includes Technicians.

Overseas funds

As a source of R&D funding, this includes grants and payments for R&D projects carried out on contract for overseas organisations. Transfers from related entities are only included if they specifically relate to R&D being undertaken (by the reporting organisation) on behalf of the related entity.

Overseas location

Includes R&D performed overseas, but controlled by the Australian organisation. 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 organisation.

Person years of effort

One person year of effort is equal to a full time employee whose time is wholly devoted to R&D for a whole year. Employees are defined as persons who worked for a private or public employer and received pay for the reference period in the form of wages or salaries, a commission while also receiving a retainer, tips, piece rates or payment in kind. Persons who operated their own incorporated business with or without hiring employees are also included as employees.

Pure basic research

Experimental and theoretical work undertaken to acquire new knowledge without looking for long term benefits other than the advancement of knowledge.

R&D activity

Systematic investigation or experimentation involving innovation or technical risk, the outcome of which is new knowledge, with or without a specific practical application, or new or improved products, processes, materials, devices or services. R&D activity extends to modifications to existing products/processes. R&D activity ceases and pre-production begins when work is no longer experimental.

Researchers

Those involved with the conception and/or development of new products/processes (e.g. 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. For the Higher education sector, Researchers include Academics and Postgraduate students.

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 carried out on contract for state and local government organisations. For the State/territory government subsector, it also includes all funding for R&D sourced from within the reporting organisation (i.e. own funds).

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.

Technicians

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.