R&D expenditure supports the creation of new ideas and knowledge.
Expenditure on R&D by sector ($ million)
Nominal R&D expenditure has grown in all sectors over the last 20 years. BERD = Business Expenditure on R&D, HERD = Higher Education Expenditure on R&D, PNPERD = Private Non-profit Expenditure on R&D. GovERD = Government (state + federal) expenditure on R&D. The SRI Budget Tables provide an alternative measure of government expenditure. See our SRI Budget Tables Insight for more details. Source: ABS 2010c, 2019e, 2019f, 2023f, 2023g
This metric shows gross R&D spending by sector from 2001 to 2022, using nominal values. It indicates that the business sector has the highest nominal expenditure on R&D, followed by the higher education, government and private non-profit sectors. The data shows a consistent increase in nominal R&D expenditures across all sectors, with the business sector experiencing the most significant growth. Its spending has quadrupled from approximately $5,000 million in 2001 to over $20,00 million in 2022. The higher education sectors R&D spending also saw a substantial rise, from about $2,800 million to roughly $13,000 million. Meanwhile, the government and private non-profit sectors have witnessed modest increases in R&D expenditures during the same period.
Business R&D expenditure intensity, by industry
Businesses provide most R&D expenditure in Australia. R&D expenditure as a proportion of gross value added in an industry indicates how much research is occurring as a proportion of overall economic activity in the industry. Note: This chart includes the top six industries in 2023. Source: ABS 2015b, 2017b, 2019e, 2021d, 2023a, 2023f
The chart shows the R&D expenditure intensity across six leading industries, measured as a percentage of Gross Value Added (GVA), from 2006 to 2022. It shows that the manufacturing sector has maintained a consistently stable lead in R&D expenditure intensity. However, the Professional, scientific, and technical services sector has seen a significant rise, eventually surpassing manufacturing around 2020. Over the last decade, the Professional, scientific, and technical services sector experienced the most substantial growth in R&D expenditure intensity, climbing from 3.05% in 2011 to 4.22% in 2022. Meanwhile, the R&D expenditure intensity for the Financial and insurance services, Information media and telecommunications, and Wholesale trade industries has remained stable at 1.9%, 1.5%, and 1.09%, respectively. R&D expenditure intensity also saw a modest increase in Other Service industry.
Expenditure on R&D by sector (% of GDP)
While nominal R&D expenditure in all sectors has grown in recent times, GDP has grown faster. R&D expenditure as a proportion of GDP has thus declined. The majority of R&D expenditure in the Australian economy occurs in the business and higher education sectors. Source: ABS 2010c, 2019e, 2019f, 2023f, 2023g, 2024a
This metric shows gross R&D spending by sector as a proportion of GDP from 2001 to 2022. It indicates that the business sector has the largest share of R&D spending, followed by the higher education, government and private non-profit sectors. The business sector saw an increase in R&D investment as a proportion of GDP until 2009, but it fell from 1.37% to 0.88% in 2022. In contrast, the higher education sector experienced a slight rise from 0.39% to 0.56%, while the government sector saw a decrease in R&D expenditure over time. R&D spending as a proportion of GDP in the private non-profit sector has remained stable at around 0.05%.