Recession Australia

Research and Experimental Development, Businesses, Australia, 2015-16

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During 2015-16, expenditure on R&D by Australian businesses was $16,659 million. Business expenditure on R&D (BERD) decreased by 12% in current price terms and decreased by 13% in chain volume terms from 2013-14.

Business human resources devoted to R&D in 2015-16 totalled 70,467 person years of effort (PYE), a decrease of 11% from 2013-14.

The decrease was largely driven by the Mining and Manufacturing industries down $954 million (34%) and $936 million (19%) respectively from 2013-14. This is the second consecutive decrease for the Mining industry. Since 2011-12 there has been a decrease in the Mining industry contribution to BERD down from contributing $4,104 million (22%) in 2011-12 to $1,876 million (11%) in 2015-16. Manufacturing contribution decreased from $4,844 million (26%) in 2013-14 to $3,908 million (23%) in 2015-16.

BERD as a proportion of Gross Domestic Product (GDP) decreased from 1.19% in 2013-14 to 1.01% in 2015-16.

BUSINESS EXPENDITURE ON R&D (BERD) 

INDUSTRY

Manufacturing remained the largest contributor to total BERD, contributing $3,908 million (23%) in 2015-16. Professional, Scientific and Technical Services ($3,751 million or 23%), Financial and Insurance Services ($3,215 million or 19%) and Mining ($1,876 million or 11%) were the next largest contributors. Together, these four industries accounted for more than three quarters (77%) of total BERD in 2015-16.

(a) Ranked by 2015-16 BERD

Mining showed the largest decrease in BERD from 2013-14 down $954 million (34%), followed by Manufacturing down $936 million (19%). Financial and Insurance Services showed the largest increase in BERD from 2013-14 up $122 million (4%), followed by Information, Media and Telecommunications up $72 million (13%).

EMPLOYMENT SIZE

BERD for all employment size groups decreased in 2015-16. Businesses with 200 or more employees had the largest decrease down $1,572 million (14%), followed by; businesses with 20-199 employees down $552 million (12%), businesses with 0-4 employees down $41 million (4%) and businesses with 5-19 employees down $25 million (1%).

LOCATION OF EXPENDITURE

Location of expenditure relates to the region in which the R&D activity was performed (refer to the Explanatory Notes for more information). New South Wales and Victoria continued to have the highest levels of BERD in 2015-16, with $6,421 million (39% of total BERD) and $4,275 million (26% of total BERD) respectively.

In 2015-16, BERD in Queensland showed the largest decrease down $744 million (28%), followed by Western Australia down $650 million (24%). Overseas as a location of expenditure showed the largest growth in BERD, up $176 million (28%), followed by Tasmania up $37 million (25%).

BERD AND GROSS STATE PRODUCT (GSP)

In 2015-16, the state or territory with the highest level of BERD as a proportion of GSP was New South Wales (1.19%). Tasmania was the only state that showed an increase in the BERD/GSP ratio (up 0.12 percentage points to 0.70% in 2015-16). The Northern Territory showed the largest decrease (down 0.68 percentage points) from 1.00% in 2013-14 to 0.31% in 2015-16.

TYPE OF ACTIVITY

In 2015-16, businesses continued to direct the majority of BERD into Experimental development ($10,855 million or 65% of total BERD) and Applied research ($4,796 million or 29% of total BERD). All types of activity decreased between 2013-14 and 2015-16. Applied research decreased $1,339 million (22%), Experimental development decreased $667 million (6%), Strategic basic research decreased $137 million (13%). Pure basic research recorded the lowest decrease down $48 million (28%).

FIELDS OF RESEARCH

By Fields of Research, Information and Computing Sciences ($6,634 million or 40% of total BERD) and Engineering ($5,538 million or 33% of total BERD) accounted for almost three quarters (73%) of total BERD in 2015-16. Engineering showed the largest decrease, down $1,936 million (26%). Information and Computing Sciences showed the largest increase, up $561 million (9%) from 2013-14.

SOCIO-ECONOMIC OBJECTIVE

By Socio-economic Objective, Manufacturing ($4,419 million or 27% of total BERD), Commercial Services and Tourism ($3,580 million or 21% of total BERD) and Information and Communication Services ($2,965 million or 18% of total BERD), accounted for two thirds (66%) of total BERD in 2015-16. Mineral Resources showed the largest decrease in BERD down $795 million (39%). Information and Communication Services showed the largest increase up $166 million (6%) from 2013-14.

BUSINESS HUMAN RESOURCES DEVOTED TO R&D 

INDUSTRY

In 2015-16, the industry divisions of Professional, Scientific and Technical Services, Manufacturing and Financial and Insurance Services were the main contributors to total human resources devoted to R&D, at 21,364 (30%), 14,358 (20%) and 14,029 (20%) person years of effort (PYE) respectively.

(a) ranked by 2015-16 total human resources devoted to R&D

Manufacturing showed the largest decrease in human resources devoted to R&D in 2015-16, down 5,596 PYE (28%).

EMPLOYMENT SIZE

In 2015-16, businesses with 200 or more employees and businesses with 20-199 employees accounted for more than three quarters (80%) of total human resources devoted to R&D (34,200 PYE or 49% and 22,061 PYE or 31% respectively). A decrease in human resources was shown across all four employment size groups. The largest decrease was for businesses with 200 or more employees (down 5,236 PYE or 13%).

TYPE OF RESOURCE

Researchers were the most prevalent type of human resource devoted to R&D in 2015-16, accounting for 33,016 PYE or 47% of total PYE. Researchers showed the largest decrease in PYE, down 6,049 PYE (15%). 

(Source: Australian Bureau of Statistics)