GOVERNMENT EXPENDITURE ON R&D (GOVERD)
TYPE OF EXPENDITURE
In 2014-15, GOVERD included $2,981 million (90%) in Current expenditure and $348 million (10%) in Capital expenditure. The largest component of GOVERD in 2014-15 was Labour costs, at $1,831 million (55% of GOVERD). This was followed by Other current expenditure, at $1,150 million (35% of GOVERD).
Each type of expenditure decreased in 2014-15, with Capital expenditure down $320 million (48%) and Current expenditure down $76 million (3%). Compared to 2012-13, Capital expenditure on Land, buildings and other structures recorded the largest dollar decrease, down $313 million (70%), followed by Current Expenditure on Labour costs, down $40 million (2%).
SOURCE OF FUNDS
The two main sources of funds for GOVERD in 2014-15 were Own funds ($2,133 million or 64% of GOVERD) and Other Commonwealth government ($454 million or 14% of GOVERD). These were also the main sources of funds in 2012-13.
Between 2012-13 and 2014-15, Own funds recorded the largest dollar decrease, down $422 million (17%), followed by Other Commonwealth government, down $70 million (13%).
LOCATION OF EXPENDITURE
Location of expenditure relates to the region in which R&D activity was performed; see Explanatory Notes for details.
In 2014-15, Victoria ($811 million) and New South Wales ($629 million) together accounted for 43% of total GOVERD. Victoria recorded the largest decrease in both dollar and percentage terms, down $294 million or 27%. Overseas, as a location of expenditure, recorded the largest increase in GOVERD between 2012-13 and 2014-15, up $36 million (321%).

GOVERD and Gross State Product (GSP)
GOVERD as a proportion of Gross State Product (GSP) decreased for all States/territories with the exception of Western Australia in 2014-15.
GOVERD, by location of expenditure - proportion of GSP(a) |
|
 |  | NSW | Vic. | Qld | SA | WA | Tas. | NT | ACT |
 |  | % | % | % | % | % | % | % | % |
|
2012-13 |  |  |  |  |  |  |  |  |
 | Commonwealth | 0.09 | 0.18 | 0.09 | 0.37 | 0.05 | 0.52 | 0.18 | 1.22 |
 | State | 0.06 | 0.15 | 0.09 | 0.14 | 0.05 | - | 0.15 | 0.06 |
 | Total(b) | 0.15 | 0.33 | 0.19 | 0.52 | 0.10 | 0.52 | 0.33 | 1.27 |
2014-15 |  |  |  |  |  |  |  |  |
 | Commonwealth | 0.08 | 0.15 | 0.08 | 0.30 | 0.06 | 0.49 | 0.19 | 1.18 |
 | State | 0.05 | 0.07 | 0.09 | 0.12 | 0.05 | 0.01 | 0.13 | 0.06 |
 | Total(b) | 0.12 | 0.23 | 0.17 | 0.42 | 0.11 | 0.50 | 0.32 | 1.24 |
|
- nil or rounded to zero (including null cells) |
(a) See Explanatory Notes for details. |
(b) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals. |
TYPE OF ACTIVITY
In 2014-15, 56% of GOVERD ($1,878 million) was directed to Applied research, 27% ($888 million) to Strategic basic research and 12% ($391 million) to Experimental development. The remaining 5% ($172 million) was directed towards Pure basic research.
Pure basic research was the only Type of activity to record an increase from 2012-13, up $9 million (5%). All other types of activities decreased from 2012-13, with the largest dollar and percentage decrease recorded in Strategic basic research, down $268 million (23%).
FIELDS OF RESEARCH (FOR)
The Fields of Research accounting for the largest amount of GOVERD expenditure in 2014-15 were Medical and Health Sciences ($506 million or 15%), Agricultural and Veterinary Sciences ($502 million or 15%), Engineering ($468 million or 14%) and Biological Sciences ($350 million or 11%). Together, these four Fields of Research accounted for over half (55%) of total GOVERD for 2014-15.
SOCIO-ECONOMIC OBJECTIVE (SEO)
The four Socio-economic Objectives attracting the most expenditure in 2014-15 were Health ($627 million or 19%), Environment ($586 million or 18%), Defence ($464 million or 14%) and Plant Production and Plant Primary Products ($374 million or 11%). In 2014-15, the top four Socio-economic Objectives remained the same as in 2012-13 and accounted for almost two thirds (62%) of total GOVERD.