Australian Key Innovation Indicators Data Card

The Australian Key Innovation Indicators Data Card contains key information about business expenditure on research and development (BERD), gross expenditure on research and development (GERD) and other innovation indicators.

For further information on, and analysis of these indicators, please refer to the Australian Innovation Systems Report 2013.

As at 10 September 2014

Research and Development Indicators

Latest available Australian data

R&D Indicator Reference year Expenditure ($m) Proportion of GDP (%)
GERD 2011-12 31,665 2.13
BERD 2011-12 18,321 1.24
HERD 2012 9,610 0.63
GOVERD 2012-13 3,725 0.24
Private non-profit 2012-13 961 0.06

Latest available comparative international data

R&D Indicator Reference year Proportion of GDP (%),
OECD Average
GERD 2011-12 2.40
BERD 2011-12 1.62
HERD 2012 0.44
GOVERD 2012-13 0.28
Private non-
profit
2012-13 n/a

Note: n/a = data not available; R&D - Research and development; GERD - Gross expenditure on research and development; BERD - Business expenditure on research and development; HERD - Higher education expenditure on research and development; GOVERD - Government expenditure on research and development

Source: Australian data come from ABS cat. no. 8104.0 (2011-12); 8109.0 (2011-12) and OECD data from MSTI 2014/1

This graph shows Australia's gross expenditure on research and development (GERD), as a proportion of gross domestic product (GDP), compared with the OECD. It shows that Australia's GERD/GDP ratio has increased considerably from 1.47% in 2000-01 to 2.26% peak in 2008-09 to finish up at 2.13% in 2011-12, bringing it closer to the OECD (2.33% in 2008-09). The chart below also depicts Australia's GERD in current dollar terms, showing that spending on R&D has increased substantially over the time period, from $10,417 million in 2000-01 to $31,665 million in 2011-12.

The table shows that Australia's GERD in current dollar terms, showing that spending on R&D has increased substantially over the time, from $10,417 million in 2000-01 to $31,665 million in 2011-12.

1996-97 1998-99 2000-01 2002-03 2004-05 2006-07 2008-09 2010-11 2012-13
GERD Australia ($ million) 8,792 8,918 10,417 13,212 15,969 21,777 28,299 30,830  
GERD Australia (%GDP) 1.58 1.43 1.47 1.65 1.72 2.01 2.26 2.20  
GERD OECD (%GDP) 2.07 2.12 2.20 2.21 2.18 2.26 2.36 2.37 2.40

The graph shows business expenditure on research and development (BERD) in Australia, as a proportion of GDP, in comparison with the OECD. It shows that the BERD in Australia has increased from 0.87% of GDP in 2002-03 to 1.38% peak in 2008-09 to finish up at 1.24% in 2011-12. OECD’s BERD/GDP ratio has increased from 1.47% in 2002-03 to 1.63% in 2012-13. The chart below shows that BERD in Australia has risen from $6,940 million to $18,321 million in current dollar terms between 2002-03 and 2011-12.

The table shows that BERD in Australia, in current dollar terms, has risen from $6,940 million in 2002-03 to $18,321 million in 2011-12.

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

BERD Australia ($ million)

6,940

7,770

8,676

10,434

12,639

15,047

17,291

16,760

18,007

18,321

 

BERD Australia (%GDP)

0.87

0.90

0.94

1.05

1.17

1.28

1.38

1.30

1.28

1.24

 

BERD OECD (%GDP)

1.50

1.49

1.47

1.51

1.55

1.58

1.63

1.62

1.58

1.59

1.62

This graph compares BERD in the manufacturing, mining, and finance and insurance industries in Australia from 1998-99 to 2011-12. It shows that BERD in the mining industry has grown considerably to 2011-12, from $485 million in 1998-99 to $4,334 million peak in 2008-09 to finish up at $4,104 million in 2011-12. BERD in the finance and insurance industry, and manufacturing also increased during this period from $83 million and $2,028 million to $2,985 million and $4,474 million respectively

Tabular data for Business Expenditure on Research and Development from 1998-99 to 2011-12 - Manufacturing; Mining; and Finance and Insurance

This graph compares gross expenditure on research and development (GERD) by type of activity, from 1992-93 to 2010-11. The four types of activities included in the graph are ‘pure basic research', ‘strategic basic research', ‘applied research', and ‘experimental development'. GERD on all of these activities has increased during this period. In particular, ‘applied research' and ‘experimental development' have grown from $2,150 million to $12,125 million and $2,494 million to $12,414 million respectively during this period.

Tabular data for Gross Expenditure on Research and Development (GERD) by type of activity


Business Expenditure on Research and Development by industry sector, 2011-12

Industry Sector

2011-12 ($'000)

% of BERD

Manufacturing

4,473,890

24.4

Mining

4,104,123

22.4

cial and Insurance Services

2,985,215

16.3

Professional, Scientific and Technical Services

2,831,737

15.5

Construction

819,529

4.5

Wholesale Trade

715,822

3.9

Information Media and Telecommunications

701,202

3.8

Electricity, Gas, Water and Waste Services

378,133

2.1

Administrative and Support Services

308,668

1.7

Transport, Postal and Warehousing

292,850

1.6

Agriculture, Forestry and Fishing

189,747

1.0

Retail Trade

146,045

0.8

Health Care and Social Assistance

94,424

0.5

Rental, Hiring and Real Estate Services

92,086

0.5

Arts and Recreation Services

72,431

0.4

Other Services

63,215

0.3

Accommodation and Food Services

21,451

0.1

Public Administration and Safety

15,807

0.1

Education and Training

14,948

0.1

Total

18,321,322

100.0


Innovation indicators

Type of businesses

% of total businesses for 2012-13

% of total businesses for 2011-12

% change between 2012-13 and 2011-12

% point difference between 2012-13 and 2011-12

Total proportion of innovation-active businesses*

42.2 46.6 -9.4 -4.4

Proportion of innovating businesses*

36.6 41.3 -11.4 -4.7

Goods or services

20.0 20.4 -2.0 -0.4

Operational processes

16.9 19.1 -11.5 -2.2

Organisational/managerial processes

20.2 23.0 -12.2 -2.8

Marketing methods

18.8 19.9 -5.5 -1.1

* An innovation-active business is one that has undertaken any innovative activity during the period under review, including those with ongoing and abandoned activities. An innovating business is one that has introduced at least one type of innovation during the period under review.

Top 3 industry sectors in 2010-11 - Proportion of innovating businesses:

Type of businesses

% of total businesses for 2012-13

% of total businesses for 2011-12

% change between 2012-13 and 2011-12

% point difference between 2012-13 and 2011-12

Information Media and Communication 48.1 51.5 -6.6 -3.4
Retail Trade 46.7 52.0 -10.2 -5.3
Wholesale Trade 43.9 48.0 -8.5 -4.1


Percentage of innovating businesses by industry sector and the corresponding gross value added (GVA), 2012-13

Industry Sector

Businesses which
introduced innovation
(innovating businesses) (%)

GVA at current prices
($million)

Industry share of GVA (%)
at current prices

Wholesale Trade

48.1

61,815

4.3

Retail Trade

46.7

69,182

4.9

Manufacturing

43.9

101,427

7.1

Other Services

43.8

26,983

1.9

Arts and Recreation Services

43.7

12,199

0.9

Information Media and Telecommunications

41.7

42,168

3.0

Professional, Scientific and Technical Services

40.3

103,191

7.3

Financial and Insurance Services

38.2

123,695

8.7

Administrative and Support Services

36.8

43,801

3.1

Health Care and Social Assistance

36.4

97,760

6.9

Mining

35.2

122,028

8.6

Accommodation and Food Services

35.0

34,779

2.4

Rental, Hiring and Real Estate Services

32.1

38,156

2.7

Electricity, Gas, Water and Waste Services

29.9

44,531

3.1

Construction

27.0

117,588

8.3

Agriculture, Forestry and Fishing

26.7

34,190

2.4

Transport, Postal and Warehousing

24.3

73,546

5.2

Total

 

1,423,181

 

This graph shows collaboration by innovation-active businesses for the purpose of innovation, by type of organisation collaborated with, in 2012-13. It demonstrates that 20.3% of businesses collaborated for the purpose of innovation overall, with the top five types of organisations collaborated with being 'clients, customers or buyers' (42.1%); 'suppliers of equipment, materials, components or software' (36.3%); 'consultants' (27.1%); 'competitors and other businesses from the same industry' (21.3%); and 'another business owned by the same company' (18.5%).

Tabular data for Collaboration between innovation-active businesses by key organisational types, 2012-13


Australian Government Support for Science, Research and Innovation through the budget and other appropriations

2005-06
($m)

2006-07
($m)

2007-08
($m)

2008-09
($m)

2009-10
($m)

2010-11
($m)

2011-12
($m)

2012-13
($m)

Estimated
Actual
2013-14
($m)

Budget
Estimate
2014-15
($m)

Total Australian Government Support

6083 6613 6718 7513 8384 8970 9805 9578 9577 9192

Proportion of Total Australian Government Expenditure (%)

2.51 2.55 2.40 2.31 2.46 2.52 2.59 2.50 2.31 2.22

% of GDP

0.61 0.61 0.57 0.60 0.65 0.64 0.66 0.63 0.61 0.56

Intramural Expenditure *

1417 1508 1639 1617 1697 1746 1770 1832 1861 1843

CSIRO

594 610 663 676 715 730 725 734 778 745

DSTO

351 408 406 380 408 422 451 434 421 408

ANSTO

159 142 186 175 155 180 165 229 211 253

Other Government Research Agencies

313 348 384 387 420 414 429 435 451 437

Extramural Expenditure *

4666 5105 5079 5896 6686 7224 8035 7746 7716 7348

Industry R&D Tax Incentives

897 1005 1236 1749 1775 1915 2649 2568 2726 2430
Competitive Grants

ARC

544 570 572 586 653 709 809 879 887 876

NHMRC

425 472 561 699 707 754 812 763 859 930
Higher Education Support Act (HESA) Block Grants

Research Training Scheme

563 574 585 592 604 615 632 656 672 677

Research Infrastructure Block Grants

200 204 206 210 215 219 224 245 264 239

Other HESA block grants

460 456 433 439 524 654 740 742 790 840

CRCs

208 189 212 182 179 173 165 156 144 150

Other extramural expenditure

1370 1635 1275 1439 2030 2186 2003 1737 1375 1207

Note: CSIRO = Commonwealth Scientific and Industrial Research Organisation; DSTO = Defence Science and Technology Organisation; ANSTO = Australian Nuclear Science and Technology Organisation; ARC = Australian Research Council; NHMRC = National Health and Medical Research Council; CRC = Cooperative Research Centres; HESA = Higher Education Support Act 2003.

* Intramural Expenditure: Intramural expenditures are all expenditures for R&D performed within a statistical unit or sector of the economy during a specific period, whatever the source of funds (OECD(2002), Frascati Manual; Extramural Expenditure: Extramural expenditures are sums that a unit, organisation or sector reports having paid or committed to pay to another unit, organisation or sector for the performance of R&D during a specific period.

(1) Australian data come from ABS cat. no. 8104.0 (2011-12); 8109.0 (2011-12); ABS cat. No. 8111.0 (2012) and OECD data from MSTI 2013/2; (2) Australian data come from ABS cat. no. 8104.0 (various issues) and OECD data from MSTI 2013/2; (3) ABS cat. no. 8104.0 (various issues); (4) ABS cat. no. 8112.0 (various issues); (5) ABS cat. no. 8104.0 (2011-12) (6) ABS cat. no. 8166.0 (2011-12) and ABS cat. no. 8166.0 (2010-11); (7) ABS cat. no. 8166.0 (2011-12) and ABS cat. no. 5204.0 (2011-12); (8) ABS cat. no. 8158.0 (2010-11); (9) DIICCSRTE (2013), The Australian Government’s 2013-14 Science, Research and Innovation Budget Tables.