8109.0 - Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2016-17 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 05/07/2018   
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GOVERNMENT RESOURCES DEVOTED TO RESEARCH AND EXPERIMENTAL DEVELOPMENT (R&D)

During the 2016-17 financial year, expenditure on R&D performed by Australian government organisations was $3,279 million. Commonwealth government organisations contributed $2,139 million (65%), and state and territory government organisations contributed $1,140 million (35%), to total government expenditure on R&D (GOVERD).

GOVERD decreased 2% in current price terms and 4% in chain volume terms between 2014-15 and 2016-17.

GOVERNMENT RESOURCES DEVOTED TO R&D

2006-07
2008-09
2011-12
2012-13
2014-15
2016-17

Expenditure on R&D - Current prices
Commonwealth $m
2 046
2 252
2 426
2 345
2 257
2 139
State/territory $m
1 049
1 169
1 123
1 381
1 072
1 140
Total(a) $m
3 095
3 420
3 549
3 725
3 329
3 279
Expenditure on R&D - Chain volume measures(b)
Commonwealth $m
2 657
2 755
2 761
2 556
2 312
2 139
State/territory $m
1 363
1 429
1 278
1 506
1 098
1 140
Total(a) $m
4 019
4 184
4 039
4 062
3 409
3 279
Human resources devoted to R&D
Commonwealth PYE
9 481
9 209
9 800
9 820
8 443
8 000
State/territory PYE
7 279
7 834
6 889
6 561
6 273
6 773
Total(a) PYE
16 760
17 042
16 689
16 381
14 715
14 773

(a) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.
(b) The reference period for chain volume measures is 2016-17. See Explanatory Notes for details.


Subsequent expenditure figures and supporting commentary relate to current price terms.

R&D expenditure by Commonwealth government organisations decreased $118 million (5%) in 2016-17. R&D expenditure by State and territory government organisations increased $68 million (6%) from 2014-15.

GOVERNMENT EXPENDITURE ON R&D, summary statistics

COMMONWEALTH
STATE/TERRITORY
TOTAL(a)
2014-15
2016-17
2014-15
2016-17
2014-15
2016-17
$m
$m
$m
$m
$m
$m

Type of expenditure
Capital expenditure
Land, buildings and other structures
102
74
30
38
132
112
Other capital expenditure
178
139
38
31
216
171
Total(a)
280
213
68
69
348
282
Current expenditure
Labour costs
1 210
1 204
620
687
1 831
1 892
Other current expenditure
767
721
383
384
1 150
1 105
Total(a)
1 978
1 926
1 004
1 071
2 981
2 996
Total expenditure on R&D(a)
2 257
2 139
1 072
1 140
3 329
3 279

(a) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.


GOVERD AND GROSS DOMESTIC PRODUCT (GDP)

GOVERD as a proportion of GDP decreased from 0.21% in 2014-15 to 0.19% in 2016-17.

Graph: GOVERD, as a proportion of GDP
(a) See Explanatory Notes for details.


GOVERNMENT EXPENDITURE ON R&D (GOVERD)


TYPE OF EXPENDITURE

In 2016-17, GOVERD included $2,996 million (91%) in Current expenditure and $282 million (9%) in Capital expenditure. The largest component of GOVERD in 2016-17 was Labour costs, at $1,892 million (58%) of GOVERD. This was followed by Other current expenditure, at $1,105 million (34%) of GOVERD.

In 2016-17, total Capital expenditure decreased $66 million (19%), with total Current expenditure increasing $15 million (1%). Compared to 2014-15, Other current expenditure recorded the largest decrease in dollar terms, down $46 million (4%), followed by Other capital expenditure, also down $46 million (21%). Labour costs was the only type of expenditure that recorded an increase, up $61 million (3%) in 2016-17.

SOURCE OF FUNDS

The two main sources of funds for GOVERD in 2016-17 were Own funds, $2,209 million (67% of GOVERD) and Other Commonwealth government, $323 million (10% of GOVERD). These were also the main sources of funds in 2014-15.

Between 2014-15 and 2016-17, Other Commonwealth government recorded the largest dollar decrease, down $131 million (29%), followed by Universities, down $44 million (83%).

LOCATION OF EXPENDITURE

Location of expenditure relates to the region in which R&D activity was performed; see Explanatory Notes for details.

In 2016-17, Victoria ($792 million) and New South Wales ($626 million) together accounted for 43% of total GOVERD. Australian Capital Territory recorded the largest decrease in dollar terms, down $50 million or 12%. Queensland, as a location of expenditure, recorded the largest dollar increase in GOVERD between 2014-15 and 2016-17, up $18 million (4%).


Graph: GOVERD, by location of expenditure
(a) For a definition of location, see Explanatory Notes.

GOVERD AND GROSS STATE PRODUCT (GSP)

In 2016-17, the Australian Capital Territory had the largest decrease in GOVERD as a proportion of GSP (0.26%).

GOVERD, by location of expenditure - proportion of GSP(a)

NSW
Vic.
Qld
SA
WA
Tas.
NT
ACT
%
%
%
%
%
%
%
%

2014-15
Commonwealth
0.08
0.15
0.09
0.30
0.06
0.45
0.18
1.20
State
0.05
0.07
0.09
0.12
0.05
0.01
0.12
0.06
Total(b)
0.12
0.22
0.18
0.42
0.11
0.46
0.31
1.26
2016-17
Commonwealth
0.06
0.13
0.07
0.32
0.05
0.43
0.14
0.96
State
0.05
0.06
0.09
0.10
0.06
0.00
0.16
0.04
Total(b)
0.11
0.19
0.16
0.42
0.11
0.43
0.30
1.00

(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 2016-17, 56% of GOVERD ($1,831 million) was directed to Applied research, 26% ($866 million) to Strategic basic research and 14% ($460 million) to Experimental development. The remaining 4% ($122 million) was directed towards Pure basic research.

Pure basic research recorded the largest dollar decrease of $50 million (29%), followed by Applied research down $47 million (3%) and Strategic basic research, down $22 million (3%) from 2014-15. Experimental development recorded the only increase in 2016-17, up $69 million (18%).

FIELDS OF RESEARCH (FOR)

The Fields of Research accounting for the largest amount of GOVERD expenditure in 2016-17 were Agricultural and Veterinary Sciences, $574 million (18%); Medical and Health Sciences, $502 million (15%); Engineering, $494 million (15%) and Biological Sciences, $310 million (9%). Together, these four Fields of Research accounted for over half (57%) of total GOVERD for 2016-17.

SOCIO-ECONOMIC OBJECTIVE (SEO)

The four Socio-economic Objectives attracting the most expenditure in 2016-17 were Health, $593 million (18%); Defence, $557 million (17%); Environment, $519 million (16%); and Plant Production and Plant Primary Products, $417 million (13%). In 2016-17, the top four Socio-economic Objectives remained the same as in 2014-15 and accounted for almost two thirds (64%) of total GOVERD.

GOVERNMENT HUMAN RESOURCES DEVOTED TO R&D

In 2016-17, human resources devoted to R&D by Australian government organisations totalled 14,773 person years of effort (PYE). Commonwealth government comprised 8,000 PYE (54%) of total PYE and State and territory government comprised 6,773 PYE (46%).

GOVERNMENT HUMAN RESOURCES DEVOTED TO R&D, by type of resource

COMMONWEALTH
STATE/TERRITORY
TOTAL(a)
2014-15
2016-17
2014-15
2016-17
2014-15
2016-17
PYE
PYE
PYE
PYE
PYE
PYE

Researchers
4 594
4 501
3 044
2 982
7 637
7 483
Technicians
2 416
2 168
2 254
2 345
4 671
4 512
Other staff
1 433
1 331
975
1 446
2 407
2 777
Total human resources devoted to R&D(a)
8 443
8 000
6 273
6 773
14 715
14 773

(a) Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.

In 2016-17, government human resources devoted to R&D increased 58 PYE (0.4%) from 14,715 PYE in 2014-15. The increase was due to increases in PYE for Other staff, up 370 PYE (15%).

Researchers remained the largest type of resource in 2016-17, accounting for 51% of total government human resources devoted to R&D.