The Department undertook a study into past, current and future trends and changes in R&D in Australia. The report's findings are based on interviews conducted with three research groups and sixteen high R&D intensity companies. Firms of differing sizes, from a variety of industries, including local and foreign-owned multinationals, were selected based on significant R&D expenditure. The study was intended to complement a Productivity Commission study on changing patterns of R&D and their effects on economic performance.
Most of the companies reported that R&D was critical to them; that competitive pressures and need for product differentiation to maintain a competitive edge was a main reason for undertaking R&D. However spending on R&D as a percentage of sales varied between industries. The study also found that most firms used patents, but reasons for doing so varied; Australia's R&D was considered to be of high quality and internationally competitive but technologically emerging countries in our region were seen as potential competitors in the future; and that research institutions were increasingly involved in undertaking research for companies, either as contractors or in collaboration.
The report was released in 2005.