8109.0 - Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2014-15 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 06/07/2016   
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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%).


Image: GOVERD, by location of expenditure, 2012-13 and 2014-15.



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.