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Research & Development Expenditure

Australia is a medium R&D performer in OECD terms. GERD/GDP had increased steadily, on the back of the booming commodity-driven economy to 2.01% in 2006-7. This was the first time that the ratio of GERD to GDP exceeded 2%. In 2006-07, Gross expenditure on R&D (GERD) was A$21.0 billion, representing an increase of 32% ($5.0 billion) over 2004-05. GERD represented 2.01% of GDP in 2006-07, up from 1.78% in 2004-05.

The Manufacturing sector accounts 31% of BERD in 2006-7 but the mining sector (21%) has been an increasingly strong performer. Services sectors accounted for 48% of BERD in 2006-7, one of the highest levels in the OECD. In 2006-07, more than three quarters (78%) of GERD was directed into applied research and experimental development (approximately $8 billion each). Engineering and technology accounted for the largest share of GERD (38% or $8.0 billion), followed by Information, computing and communication sciences (17% or $3.6 billion) and medical and health sciences (15% or $3.1 billion).

Business expenditure on R&D (BERD) in Australia during 2007-08 was $14,380 million as per ABS report in September 2009. BERD increased by 15% in current price terms. R&D expenditure data from Australian Bureau of Statistics (ABS) and OECD data is presented below.

Table: Breakup of R&D Expenditure
SourceNational R&D SurveyOECD
YearYear: 2006-07Year: 2006
UnitsA$ millionmillion PPP USD
Gross Domestic Expenditure on R&D21,00014,914.4
R&D Expenditure by spending sector:  
Business/Industry12,0408,546.0
Government 2,9542,102.9
Higher Education5,4043,833.0
Private &/or non-profit/FFRDCs606432.5
Others  
R&D Expenditure by source of funds  
Business/Industry11,7468,531.0
Government8,0265,727.1
Higher Education  
Foreign545387.8
Other sectors (e.g. Public Research Institutes)  
Others684268.5
Source: (1) Australian Bureau of Statistics 8112.0 October 2008 and 8104.0 September 2009. (2) OECD, Main Science and Technology Indicators database, May 2009.