8104.0 - Research and Experimental Development, Businesses, Australia, 2006-07 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 14/10/2008   
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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 methods or ways of achieving some specific and predetermined objectives.

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.

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.

Commonwealth 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 Commonwealth government organisations.

Employees

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.

Experimental development

Systematic work, using existing knowledge gained from research or practical experience for the purpose of creating new or improved products/processes.

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.

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

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 carried out on contract for other businesses located in Australia. Transfers from related entities are only included if they specifically relate to R&D being undertaken (by the collected business) on behalf of the related entity.

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.

Other staff

Skilled and unskilled craftpersons, secretarial and clerical staff directly associated with R&D activity.

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 collected business) on behalf of the related entity.

Overseas location

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 Australia business.

Own funds

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

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.

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.

Research field

Reflects the field of research in which the R&D activity was performed. The RFCD classification is primarily structured around disciplines or activities. It describes the nature of the research being performed.

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.

Socio-economic objective

The broad socio-economic areas of expected benefit rather than the immediate objectives of the researcher. The SEO classification defines the main areas of Australian economic and social activity to which the results of research programs are applied. It describes the purpose of the research.

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.

Strategic basic research

Experimental and theoretical work undertaken to acquire new knowledge directed in specified broad areas in the expectation of useful discoveries. It provides the broad base of knowledge 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.