8104.0 - Research and Experimental Development, Businesses, Australia, 2006-07 
Quality Declaration
Quality Declaration ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 14/10/2008
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Over the five years to 2006-07, BERD increased at an annual rate of 15% in current price terms and 10% in chain volume terms. Subsequent expenditure figures and supporting commentary relate to current price terms. Proportion of GDP BERD as a proportion of GDP increased between 2005-06 and 2006-07, moving from 1.07% to 1.15%. The following table shows BERD/GDP ratios for selected OECD countries. Although Australia's BERD/GDP ratio for 2006-07 remained below the OECD average of 1.56%, from 2005-06 it recorded one of the largest increases compared to other OECD countries.
Industry In 2006-07, the largest contributors to BERD were Manufacturing ($3,780 million or 31% of BERD), Mining ($2,541 million or 21%) and Professional, scientific and technical services ($2,012 million or 17%). Of all industries, Mining and Information media and telecommunications reported the largest absolute growth from 2005-06, increasing their expenditure on R&D by $746 million (42%) and $341 million (77%) respectively. Other industries to record large increases included Professional, scientific and technical services (up $207 million or 11%) and Wholesale trade (up $146 million or 22%). Employment size In 2006-07, businesses with 200 or more employees made the largest contribution to BERD ($8,381 million or 70%), followed by those with 20-199 employees ($2,284 million or 19%). Making the smallest contribution to BERD were businesses with 0-4 employees ($380 million or 3%) and those with 5-19 employees ($990 million or 8%). Businesses with 200 or more employees contributed 89% ($1,509 million) of the total growth in BERD between 2005-06 and 2006-07. Type of expenditure As in previous years, BERD in 2006-07 was mainly comprised of Current expenditure ($11,244 million or 93% of BERD). Current expenditure was in turn comprised of $4,225 million in Labour costs and $7,019 million in Other current expenditure. Capital expenditure in 2006-07 totalled $792 million. The industry with the highest level of Labour costs as a proportion of its BERD was Education and training (61%), while the lowest levels were reported in Mining and Construction (at 13% and 22% respectively). Manufacturing ($266 million) and Mining ($201 million) made up more than half (59%) of total Capital expenditure. Source of funds The Business sector was the main source of R&D funds in 2006-07, with $10,913 million (91%) coming from Own funds and $310 million (3%) from Other business. Commonwealth government and Overseas organisations were the next largest funders of R&D, at $421 million (4%) and $268 million (2%) respectively. Health care and social assistance and Professional, scientific and technical services had the lowest proportions of self-funded research, at 67% and 76% respectively. Location of expenditure Locations in New South Wales and Victoria continued to record the highest levels of BERD in 2006-07, at $3,813 million (32%) and $3,322 million (28%) respectively. New South Wales also reported the largest absolute growth in BERD (up $428 million or 13%) from 2005-06, followed by Western Australia (up $382 million or 25%) and Queensland (up $320 million or 24%). While Manufacturing accounted for the largest proportion of BERD in a majority of locations, in 2006-07 the dominant industry in Western Australia was Mining (making up 60% of WA BERD). Western Australia (1.37%) and Victoria (1.34%) reported the highest percentages of BERD as a proportion of Gross State Product (GSP). South Australia experienced the largest increase in its BERD/GSP ratio from 2005-06, rising from 0.99% to 1.20%.
Type of activity In 2006-07, the majority of BERD was directed into Experimental development (61% or $7,367 million) and Applied research (33% or $3,933 million). Experimental development showed the largest absolute growth between 2005-06 and 2006-07, increasing by $976 million. Socio-economic objectives (SEO) Much of the growth in BERD, between 2005-06 and 2006-07, occurred in SEOs Information and communication services (up $491 million), Mineral resources (up $402 million) and Energy resources (up $304 million). Together these three SEOs accounted for 70% of the total growth in BERD over the period. Research fields Accounting for 83% of BERD in 2006-07 were the Research fields of Engineering and technology ($6,865 million or 57%) and Information, computing and communication sciences ($3,166 million or 26%). The largest growth in expenditure within these Research fields, between 2005-06 and 2006-07, was recorded for Resource engineering (up $555 million or 34%) and Information systems (up $527 million or 59%). HUMAN RESOURCES DEVOTED TO R&D Human resources devoted to R&D in 2006-07 totalled 46,027 person years of effort (PYE), an increase of 6% from 2005-06. Industry In 2006-07, Manufacturing and Professional, scientific and technical services were the main contributors to total Human resources devoted to R&D, at 39% and 29% respectively. Professional, scientific and technical services and Manufacturing also recorded the largest increases in Human resources devoted to R&D from 2005-06, increasing by 1,112 PYE (9%) and 657 PYE (4%) respectively. Employment size Businesses with 200 or more employees accounted for 25,925 PYE (56%) of total Human resources devoted to R&D in 2006-07, while those with 0-4 employees contributed 1,312 PYE (3%). Businesses with 20-199 employees and 200 or more employees recorded the largest growth in PYE from 2005-06, at 10% and 6% respectively. Type of resource Researchers continued to be the main type of human resource devoted to R&D (54% of total PYE) in 2006-07 and also reported the largest absolute growth from 2005-06 (up 1,065 PYE). FOREIGN OWNERSHIP Level of foreign ownership was collected for the first time in 2006-07. Wholly Australian owned businesses made the largest contribution to BERD in dollar terms ($5,564 million) and human resource effort (23,651 PYE) for 2006-07. Businesses with Greater than 50% foreign ownership made the next largest contribution with $4,402 million of BERD and 15,223 PYE of total human resources devoted to R&D.
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