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(Last Reviewed :  1/10/2009  )

KEY POINTS

  • Business expenditure on R&D (BERD) in Australia during 2007-08 was $14,380 million. This is an increase of 15 per cent from 2006-07 in current price terms or 9 per cent in real terms.
  • Manufacturing accounted for the largest share of R&D expenditure in 2007-08 at $4,305 million (30 per cent) of total BERD, followed by Mining at $3,283 million (23 per cent) of total BERD and Professional, scientific and technical services at $2,230 million (16 per cent) of total BERD.
  • Over the same period, businesses with 200 or more employees made the largest contribution to BERD ($10,040 million or 70 per cent). BERD by small and medium businesses (those with less than 200 employees) was $4,340 million (30 per cent of total BERD) and grew by 14 per cent, almost as quickly as overall BERD growth of 15 per cent.
  • The majority of BERD activity was directed to experimental development (62 per cent or $8,966 million) and applied research (32 per cent or $4,615 million). The remainder was directed to strategic basic research (5 per cent or $724 million) and pure basic research (0.5 per cent or $74 million).
  • Australia’s ratio of BERD to GDP was 1.27 per cent in 2007-08, which was 80 per cent of the OECD average of 1.59 per cent. Although Australia's BERD/GDP ratio for 2007–08 remained below the OECD average of 1.59 per cent, its growth from 2006–07 was greater than the OECD average growth.

FACTS AND FIGURES

Trends in BERD and BERD/GDP

Trends in BERD and BERD/GDP

 

Source: Research and Experimental Development, Business, Australia, 2007-08 (ABS Cat No.8104.0)


Over the five years to 2007-08, BERD has increased at an average annual rate of 17 per cent in current price terms and 12 per cent in real terms.
 
Australia’s ratio of BERD to GDP has experienced a trend increase from 0.64 per cent in 1999-00 to 1.27 per cent in 2007-08. Australia’s ratio of BERD to GDP remains below the OECD average of 1.59 per cent in 2007-08, although the gap is closing with Australia’s proportion improving to 80 per cent of the OECD average, up from 43 per cent in 1999-00.