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Research and Experimental Development, Higher Education Organisations, Australia methodology

Reference period
2016
Released
22/05/2018

Explanatory notes

Introduction

1 The statistics presented in this release have been compiled from data collected in the Survey of Research and Experimental Development, Higher Education Organisations for 2016.

2 The Survey of R&D, Higher Education is a biennial collection based on a calendar year reference period.

Definitions

3 R&D, as collected by the ABS, is defined in accordance with the Organisation for Economic Co-operation and Development (OECD) standard as "creative and systematic work undertaken in order to increase the stock of knowledge - including knowledge of humankind, culture and society - and to devise new applications of available knowledge".

4 For a more comprehensive interpretation of the definition of R&D activity, see the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no.1297.0) or refer to the OECD publication Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development.

5 Data providers report and self classify R&D expenditure based on their interpretation of OECD and ABS definitions and classifications. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data by applying consistent processing methodologies. See also the Non-Sampling Error and Revisions sections of the Technical Note under the Explanatory Notes tab.

Scope and coverage

6 The OECD definition of the higher education sector encompasses universities and other institutions of post-secondary education regardless of their source of finance or legal status. The scope of the ABS R&D survey is based on the OECD definition, but excludes colleges of Technical and Further Education. For the 2016 survey, 42 Australian higher education institutions were in scope and reported for this collection.

7 Intramural expenditure, which is defined as expenditure for R&D performed by in scope institutions during the reference period irrespective of the source of funds, is included in the survey. Expenditure made outside the institution but in support of intramural R&D is included. For further information, refer to the OECD Frascati Manual 2015. Intramural expenditure includes research performed by institutions:

  • as a participant in unincorporated Cooperative Research Centres (CRCs); and
  • on behalf of other legal entities where the institution maintains full management and control of the project.
     

8 R&D performed on an institution's campus, where the R&D is controlled by other legal entities, is excluded from the survey. The R&D performed by these entities will be in scope of the relevant R&D sector (business, government or private non-profit).

9 R&D performed overseas by Australian higher education institutions is included. Due to the very small amount of overseas expenditure, it is not separately identified.

Location of R&D

10 Data shown in this release represent the main campus or head office location of the reporting institution, with the exception of the Australian Defence Force Academy (ADFA), which is part of the University of New South Wales but is shown against the Australian Capital Territory.

Australian and New Zealand standard research classification

11 Type of Activity, Fields of Research and Socio-economic Objective statistics presented in this release have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no.1297.0).

Derived expenditure estimates

12 Total cost of R&D undertaken is equivalent to direct expenditure plus indirect (overhead) expenditure.

13 Institutions were required to indicate whether overheads had been included in reported data. In cases where data did not include overheads, an estimate was calculated by either:

  • the institution identifying the value of R&D related overhead costs to be apportioned across relevant projects/schools; or
  • the ABS, using a methodology agreed to by institutions and Universities Australia.

Gross domestic product (GDP) and gross state product (GSP)

14 The most recent GDP and GSP values available were used to calculate the R&D expenditure/GDP and R&D expenditure/GSP ratios presented in this issue. These values are referenced in the table below and have been revised from those used to calculate ratios in previous issues.

Gross domestic product, current prices

 2006-072008-092010-112012-132014-152016-17
 $m$m$m$m$m$m
GDP
1 085 145
1 258 302
1 414 219
1 533 882
1 621 404
1 758 130
Source: Australian National Accounts: National Income, Expenditure and Product, December 2017 (cat. no. 5206.0), released 7 March 2018.
 

Gross state product, current prices

 NSWVic.QldSAWATas.NTACT
 $m$m$m$m$m$m$m$m
2014-15
517 886
371 609
295 336
99 132
251 150
27 621
24 450
34 220
2016-17
576 716
406 525
326 995
103 325
247 705
29 289
25 984
38 187
Source: Australian National Accounts: State Accounts, 2016-17 (cat. no. 5220.0), released 17 November 2017.
 

15 GDP is estimated by the ABS according to the international standards System of National Accounts, 2008 (2008 SNA) and is not directly comparable to GDP for countries where these standards have not been applied.

16 While statistics presented in this issue relate to the 2016 calendar year, financial year GDP and GSP data are used to ensure consistency with ratios published in other ABS R&D releases which use a financial year as the reporting period.

Chain volume measures

17 The chain volume measures appearing in this release are annually reweighted chain Laspeyres indexes referenced to the current price values in a chosen reference year (currently 2016). All price values for previous years are re-expressed in (i.e. based on) the prices of the current year and linked together to form continuous time series. They are formed in a multi-stage process of which the major steps are described in Section 15 of the Information Paper: Australian National Accounts, Introduction of Chain Volume Measures and Price Indexes (cat. no. 5248.0).

R&D deflators

18 With the implementation of the 2008 SNA, deflators used to calculate the chain volume measure of expenditure on R&D were revised to better capture changes in the unit value of labour used in the production of R&D services, and to increase and refine the number of products included in the deflators. The revised deflators have been used for Higher Education R&D statistics since the 2008 survey cycle.

    Rounding

    19 Where figures have been rounded, discrepancies may occur between the sum of the component items and totals.

    Upcoming releases

    20 Upcoming releases of R&D statistics include:

    Research and Experimental Development, Government and Private Non-Profit Organisations, Australia, 2016-17 (cat. no. 8109.0), scheduled for release in July 2018.

    Acknowledgement

    23 The ABS acknowledges the ongoing contribution made by the higher education institutions selected for the Survey of R&D, Higher Education.

    24 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated: without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.

    ABS data available on request

    25 As well as the statistics included in this and related publications, the ABS may have other relevant data available on request. Inquiries should be made to the National Information and Referral Service on 1300 135 070.

    Technical note - data quality

    Non-sampling error

    1 Non-sampling errors may arise as a result of errors in the reporting, recording or processing of data. These errors can be introduced through inadequacies in the questionnaire, treatment of non-response, inaccurate reporting by data providers, errors in the application of survey procedures, incorrect recording of answers and errors in data capture and processing.

    2 The extent to which non-sampling error affects the results is difficult to measure. Every effort is made to minimise non-sampling error by careful design and testing of the collection instrument, the use of efficient operating procedures and systems, and the use of appropriate methodologies.

    3 When interpreting the statistics in this release, the reliability and comparability of the estimates may be affected by the following specific non-sampling errors:

    • Many institutions provided estimates due to a lack of separately recorded data on R&D activity.
    • Data were self-classified by institutions to Type of Activity, Fields of Research and Socio-economic Objective at the time of reporting. Some institutions may have experienced difficulty in classifying their R&D projects. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data by applying consistent processing methodologies.
    • The estimation method for R&D related overhead costs varied across institutions and reference periods.
       

    Revisions

    4 In the event of new information being identified and revisions made, revised figures will be indicated by a footnote. Revisions must be taken into consideration when interpreting results, particularly when comparing estimates over time.

    Glossary

    Show all

    Academics

    Staff engaged in supporting R&D, who are defined as having an academic classification by the Department of Education and Training.

    Applied research

    Original work undertaken primarily to acquire new knowledge with a specific application in view. It is undertaken either to determine possible uses for the findings of basic research or to determine new ways of achieving some specific and predetermined objectives.

    Australian Competitive Grants Register (ACGR)

    As a source of R&D funding, this includes a list of schemes that provide competitive research grants to higher education providers. Funding in this category includes both Commonwealth and Other/Non-Commonwealth Australian Competitive Grants schemes.

    Business

    As a source of R&D funding, this includes R&D grants (excluding ACGR schemes) and payments for R&D projects funded by or carried out on behalf of businesses (irrespective of whether private or government owned).

    Capital expenditure

    Expenditure on the acquisition of fixed tangible assets such as land, buildings, vehicles, plant, machinery and equipment which is attributable to R&D activity.

    Current expenditure

    Expenditure on direct labour costs, scholarships, materials, fuels, rent and hiring, repairs and maintenance, data processing, etc. and the proportion of expenditure on general services and overheads which is attributable to R&D activity.

    Donations, bequests and foundations

    As a source of R&D funding, this includes research specific donations and bequests from non-profit organisations and Australian individuals.

    Experimental development

    Systematic work, using existing knowledge gained from research or practical experience, which is directed to producing new materials, products, devices, policies, behaviours or outlooks; to installing new processes, systems and services; or to improving substantially those already produced or installed.

    Fields of Research (FOR)

    The FOR classification allows R&D activity to be categorised according to the methodology used in the R&D, rather than the activity of the unit performing the R&D or the purpose of the R&D. The FOR reflects the field in which the research was undertaken and is based on the processes and techniques used.

    General university funds

    As a source of R&D funding, this includes funds from:

    • the Commonwealth Government (other than targeted research funding), including the Australian National University Institute of Advanced Studies funds; and the portion of other revenue sourced from the Commonwealth spent on R&D but not identified as 'Competitive Research Grants' or 'Other commonwealth government'; and
    • fees and charges, income relating to Higher Education Contribution Scheme liabilities, income from non-research specific donations, bequests and foundations, investment income, reversions from provisions accounts, loans drawn down, income from the institutions commercial operations and from sale of products or assets.
       

    Human resources devoted to R&D

    The effort of researchers, postgraduate students and other staff directly involved with R&D activity. Overhead staff (e.g. administrative and general service employees such as personnel officers, janitors, etc.) whose work indirectly supports R&D are excluded.

    Labour costs

    Expenditure relating to: wages and salaries; overtime earnings; penalty payments; shift allowances; employer contributions into superannuation; fringe benefits and payroll taxes; severance, termination and redundancy payments; workers' compensation premiums/costs; provisions for employee entitlements; salaries and fees of directors and executives; retainers and commissions of persons who received a retainer; bonuses; annual and other types of paid leave.

    Land, buildings and other structures

    Expenditure on land, buildings and other structures acquired for R&D purposes including testing grounds, sites for laboratories and pilot plants, landscaping, site preparation works, fit-out costs for new buildings and major improvements and modifications.

    Location

    The region in which the institution is located (i.e. the main campus or head office location of the reporting institution, with the exception of the Australian Defence Force Academy (ADFA), which is part of the University of New South Wales but is shown against the Australian Capital Territory).

    Overseas funds

    As a source of R&D funding, this includes R&D grants and payments for R&D projects funded by or carried out on behalf of non-Australian or overseas entities.

    Other Australian

    As a source of R&D funding, this represents any other Australian sources of funds not included in the other categories.

    Other capital expenditure

    Expenditure on office and other equipment (including capitalised computer software licence fees), furnishings, vehicles, plant, machinery and equipment.

    Other commonwealth government

    As a source of R&D funding, this includes all other targeted research funding from Commonwealth agencies such as CRC grants (but excluding ACGR schemes) and payments for R&D projects funded by or carried out on behalf of the Commonwealth Government. Other examples of funding included are:

    • Australian Postgraduate Awards (APA)
    • International Postgraduate Research Scholarships (IPRS)
    • Joint Research Engagement (JRE)
    • Research Infrastructure Block Grants (RIBG)
    • Research Training Scheme (RTS)
    • Sustainable Research Excellence (SRE)
       

    Other current expenditure

    All other non-staff expenditures including: materials, fuels and other inputs; rent, leasing and hiring expenses; repair and maintenance expenses; payments to outside organisations for use of specialised testing facilities or for analytical work, engineering or other specialised services in support of R&D projects carried out by the university; software for own account produced as part of R&D; academic services purchased from outside and any other current expenses which are not captured by labour costs or scholarships. Payments for patent searches and for purchases of technical know-how are excluded.

    Other staff

    Technicians, skilled and unskilled employees, secretarial and clerical staff directly associated with R&D activity.

    Person years of effort (PYE)

    One person year of effort is equal to a full-time employee whose time is wholly devoted to R&D for a whole year.

    Postgraduate students

    Postgraduate research students supporting R&D, who are defined as engaged in a Doctorate by research or a Masters by research by the Department of Education and Training.

    Pure basic research

    Experimental and theoretical work undertaken to acquire new knowledge without looking for long term benefits other than the advancement of knowledge.

    R&D activity

    Systematic investigation or experimentation involving innovation or technical risk, the outcome of which is new knowledge, with or without a specific practical application, or new or improved products, processes, materials, devices or services. R&D activity extends to modifications to existing products/processes. R&D activity ceases and pre-production begins when work is no longer experimental.

    Scholarships

    Comprises expenditure by the university on scholarships for research higher degrees.

    Socio-economic Objective (SEO)

    The SEO classification allows R&D activity to be categorised according to the intended purpose or outcome of the research, rather than the processes or techniques used in order to achieve this objective. The SEO reflects the dominant beneficiary or beneficiaries of the research output.

    State and local government funds

    As a source of R&D funding, this includes R&D grants (excluding ACGR schemes) and payments for R&D projects funded by or carried out on behalf of state and local government.

    Strategic basic research

    Experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas in the expectation of practical discoveries. It provides the broad base of knowledge necessary for the solution of recognised practical problems.

    Type of activity

    This classification allows R&D activity to be categorised according to the type of research effort, namely, pure basic research, strategic basic research, applied research and experimental development.

    Quality declaration - summary

    Institutional environment

    Statistics presented in this release have been compiled from data collected by the Australian Bureau of Statistics (ABS) from higher education institutions in the Survey of Research and Experimental Development (R&D), Higher Education Organisations. The data were collected under the authority of the Census and Statistics Act 1905.

    For information about the institutional environment of the ABS, including its legislative obligations, financing and governance arrangements, and mechanisms for scrutiny of ABS operations, please see ABS Institutional Environment.

    Relevance

    This release presents statistics on R&D undertaken by Australian higher education institutions in respect of the calendar year ended 31 December 2016.

    R&D statistics produced by the ABS enable the nature and distribution of R&D activity in Australia to be monitored and analysed for policy formulation, allocation of funds and determination of research priorities.

    Since the release of the 2008-09 Australian System of National Accounts, R&D has been treated as capital formation. This resulted from the implementation of the new international standards System of National Accounts, 2008 (2008 SNA) and represents a change in treatment of R&D (as intermediate consumption) from SNA 1993.

    Accuracy

    The ABS aims to produce high quality data from its research and experimental development collections, while minimising the reporting burden on higher education institutions. To achieve this, extensive effort is put into survey and questionnaire design, collection procedures and processing.

    The Survey of R&D, Higher Education is a census of in-scope institutions (refer to the Scope and Coverage section of the Explanatory Notes). The survey achieved a response rate of 100%.

    For information about non-sampling errors, please refer to the Technical Note under the Explanatory Notes tab.

    Coherence

    There are no other data sources with which ABS higher education R&D data can be directly compared. However, some observations can be made which suggest the survey outputs give a reasonable indication of real world expectations and events. For example, trends in data aligning with expectations due to changes in the availability of research funds to universities.

    While the ABS seeks to maximise consistency and comparability over time by minimising changes to the survey, sound survey practice requires ongoing development to maintain the integrity of the data, its relevance to the changing needs of users and the efficiency of the collection.

    In addition to non-sampling errors, factors which may affect the comparability of 2016 estimates with those of previous cycles are described below:

    • Improved record keeping by higher education institutions in 2016.
    • From the 2008 cycle, Type of Activity, Fields of Research and Socio-economic Objective data have been collected and compiled based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no. 1297.0). Prior to this, data were based on the Australian Standard Research Classification (ASRC). The implementation of updated classifications in the 2000 and 2008 reference periods represent breaks in the relevant time series.
       

    Interpretability

    R&D as collected by the ABS is defined in accordance with the OECD standard as "creative and systematic work undertaken in order to increase the stock of knowledge - including knowledge of humankind, culture and society - and to devise new applications of available knowledge".

    The ABS Survey of R&D, Higher Education also uses classifications specific to R&D. Results presented in this release are based on the Australian and New Zealand Standard Research Classification (ANZSRC), 2008 (cat. no. 1297.0).

    Data providers report and self classify R&D survey information based on their interpretation of OECD and ABS definitions and classifications. The ABS makes every effort to ensure correct and consistent interpretation and reporting of these data by applying consistent processing methodologies. See the Non-Sampling Error and Revisions sections of the Technical Note for further information.

    Further important contextual information, to be considered when interpreting the results presented in this release, is provided under the Explanatory Notes tab (including the Technical Note and Glossary).

    Additionally, for a more comprehensive interpretation of the definitions and classifications relating to R&D activity, refer to:

    Accessibility

    In addition to main features (which include key findings commentary) resulting from the Survey of R&D, Higher Education, detailed data (in spreadsheet format) are included on the ABS website free of charge. Refer to the Downloads tab for these data.

    If the information you require is not available as a standard product, enquiries can be made by contacting the National Information and Referral Service on 1300 135 070.

    Abbreviations

    Show all

    $'000thousand dollars
    $mmillion dollars
    ABSAustralian Bureau of Statistics
    ACGR ACTAustralian Competitive Grants Register Australian Capital Territory
    ADFAAustralian Defence Force Academy
    ANZSRCAustralian and New Zealand Standard Research Classification
    ASRC Aust.Australian Standard Research Classification Australia
    CRCCooperative Research Centre
    excl.excluding
    FORFields of Research
    GDPGross Domestic Product
    GSPGross State Product
    HERDHigher Education Expenditure on R&D
    NSWNew South Wales
    NTNorthern Territory
    OECDOrganisation for Economic Co-operation and Development
    PYEPerson Years of Effort
    QldQueensland
    R&DResearch and Experimental Development
    SASouth Australia
    SEOSocio-economic Objective
    SNASystem of National Accounts
    Tas.Tasmania
    Vic.Victoria
    WAWestern Australia