Australian Consulate-General, Guangzhou
Media Release PD30/07 17 September 2007
Business spending on R&D in Australia soars to a record A$10.1 billion
- Australia's innovative domestic market set to attract foreign companies
Australia's business expenditure on research and development (BERD) rose to a record $10.1 billion in 2005-06, the seventh successive annual increase.
New data from the Australian Bureau of Statistics (ABS) shows BERD increased by 16.6% in current price terms in 2005-06, up from A$8.4 billion in 2004-05.
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his is the seventh year-on-year rise in BERD in Australia. As well as reaching a record high, it has also increased to 1.04% of GDP, the first time it has exceeded 1.0%.
“For investors, this data is a strong indicator of the performance and stability of the Australian economy, as BERD delivers new products, processes and services to Australia's domestic market and drives growth in productivity,” said Henry Wang, Senior Investment Commissioner Greater China.
"With innovation the driving force behind the growth strategies of many multinational companies, Australia's focus on research and development (R&D) will ensure its ability to continue to compete on a global scale and play an important role in building innovative Australian firms."
Many multinational companies use Australia as a base for key global and regional operations, including R&D.
China: Technological innovations by Australia's coal industry have ensured that it is the world leader in the development of clean coal technologies, providing exciting opportunities to invest in Australia's energy market.
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nterestingly, Australia's excellent reputation for clinical research and strong consumer demand for complementary and alternative medicine make Australia an attractive location for the research and development of new herbal medicine.
Recent Australian Government policies, such as its $8.3 billion innovation program, Backing Australia’s Ability, are encouraging business R&D investment in Australia.
"The Australian Government expects further growth in BERD over the next few years due to the recent changes to government policies and programs designed to encourage investment in R&D. This includes the changes to the 175% R&D Tax
Concession, the introduction of Industry Productivity Centres and reforms to venture capital," Wang said.
The largest contributors to BERD by sector were manufacturing (38.6% of BERD); property and business services (17%); and mining (16.7%). Mining and manufacturing reported the largest absolute growth in BERD from 2004-05, increasing their expenditure by 33% and 12%, respectively.
For further information, contact Ellen Chen, Public Affairs Officer on（020）3814 0183.