1377.0 - Measures of a knowledge-based economy and society, Australia, 2003  
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Contents >> Innovation and Entrepreneurship Indicators >> Business funding of research and experimental development (R&D) by sector performing as a proportion of total Business R&D funding

CHARACTERISTIC: KNOWLEDGE NETWORKS AND FLOWS

INDICATOR: Business funding of research and experimental development (R&D) by sector performing as a proportion of total Business R&D funding

The majority of business funding of R&D is for R&D performed by the business sector itself. The Higher education sector received the second highest proportion of funding from business sources in 2002-03, at 3.1% of the total.

BUSINESS SECTOR FUNDING OF R&D BY SECTORS OF PERFORMANCE

Business
Common-
wealth
government
State/
territory
government
Higher
education
Private
non-profit
Total

2000-01

$'000
$'000
$'000
$'000
$'000
$'000

Business sector funding
4,533,921
76,922
54,543
136,221
19,507
4,821,114

%
%
%
%
%
%

Percentage total business funding
94.0
1.6
1.1
2.8
0.4
100


2002-03

$'000
$'000
$'000
$'000
$'000
$'000

Business sector funding
5,354,090
78,044
50,256
174,093
31,594
5,688,077


%
%
%
%
%
%

Percentage total business funding
94.1
1.4
0.9
3.1
0.6
100

Source: ABS Research and Experimental Development, All Sector Summary, Australia (cat. no. 8112.0).



STATISTICAL NOTES

The Australian Standard Research Classification
The Australian Standard Research Classification (ASRC) is the collective name for a set of three related classifications developed for use in the measurement and analysis of research and experimental development (R&D) undertaken in Australia, both in the public and private sectors.

R&D
R&D is defined in accordance with the Organisation for Economic Co-operation and Development (OECD) standard as comprising 'creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications'.

R&D Business survey
The R&D Business survey is conducted annually and collects estimates of Research and Experimental Development expenditure and human resources devoted to R&D by businesses in Australia.

Sectors:
The sector classification used in the compilation of R&D statistics is adapted from the guidelines specified by the OECD for use in the conduct of R&D surveys.

Business sector
This sector includes all businesses whose primary activity is the production of goods or services for sale to the general public at a price intended to cover at least the cost of production, and the private non-profit institutions mainly serving them. The Business sector for the R&D survey excludes businesses mainly engaged in Agriculture, forestry, and fishing (i.e. industries in Division A of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (cat. no. 1292.0)), partly because of collection difficulties and partly because such businesses are believed to have very low R&D activity (agricultural R&D activity is generally carried out by specialised research institutes not included in ANZSIC Division A).

Government sector
This sector includes all Commonwealth, state and local government departments and authorities. The Government sector for the R&D survey excludes local government organisations because it is considered that their contribution to total R&D activity would be minimal. Public sector organisations mainly engaged in higher education (e.g. universities) are included in the Higher education sector whilst those mainly engaged in trading or financial activities are included in the Business sector.

Higher education sector
This sector includes all universities and other institutions of post-secondary education whatever their source of finance or legal status. The Higher education sector for the R&D survey excludes non-university post-secondary education institutions (e.g. Technical and Further Education colleges) because it is considered that their contribution to total R&D activity would be minimal.

Private non-profit sector
This sector includes private or semi-public incorporated organisations which are established with the intention of operating without making a profit.




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