Queensland Life Sciences Industry Report 2012 (PDF, 3.5MB)

Queensland Life Sciences Industry Report 2012
14
Profile of Research Organisation Respondents
Research organisations who responded to the survey
included research institutes (50%), research centres
(29%), faculties (11%), university research offices
responding for the university as a whole (7%) and
schools (4%).
The greatest concentration of research activities
undertaken by research organisations (62%) was
across the five segments of the Human Health
sub-sector. 4
2.5 Employment, Education and Skilling
Survey participants employed 8085 full time equivalent
(FTE) persons in Queensland, with 3433 (42%) of those
employed by companies5 . Among surveyed companies,
the complementary medicines sector was the largest
employer with 37.6% of FTEs reported.
35% of staff were employed as R&D professionals or in
other technical and R&D support roles.
The average salary of QLS Industry employees was
estimated at $66,965 compared to an average across Life
Sciences roles in Australia of $74,750 and an average
national wage of $71,568 (derived from various ABS data
sources — see 14.4.3).
Research organisations reported that, on average, 47.3%
(median 42.5%) of their workforce held a PhD. An average
of 19% (median 4%) of staff in companies held a PhD.
Over the next five years, the most commonly anticipated
skills gaps were in (1) business development; (2)
commercialisation; and (3) chemistry.
2.6 Income and Expenditure
Respondents generated a combined income of $1995
million in 2011.
Companies reported that 95.2% of their income was
sourced from the sale of goods and services with only
1.5% from grants. By contrast, research organisations
reported 8.2% of their income was sourced from the sale
of goods and services and 79.5% from grants.
The majority of companies (56.3%) and research
organisations (63.0%) reported income growth in 2011.
On average, company income grew by 14.9% (median 3%)
and research organisations income by 19% (median 4%).
One fifth of company respondents did not answer this
question.
A total of $594 million in grant income was received by
survey participants in 2011, with research organisations
accounting for $580 million (97.6% by value) and
companies $14 million (2.4%).
Companies were awarded $27.2 million in new grant
funding during 2011, with $13.6 million of this funding
being actually received in the same year6 .
Respondents reported total expenditure of $1091 million
with $564 million spent on wages and salaries (52%),
$189 million on R&D (17%) and $134 million on capital
items (12%).
Respondents from the Human Health – Pharmaceuticals,
vaccines or drug discovery sub-sector reported the
highest average spend on R&D of all industry
sub-sectors.
Research Organisations accounted for 74% of the capital
expenditure reported for 2011.
2.7 Sentiment and Outlook
Business sentiment was positive overall with 65% of
respondents expecting their income to increase over the
coming 12 months and 82% of respondents expecting
their income to increase over the next three years.
While the majority of companies and the majority of
research organisations expected income growth over
12 months and three years, about 13% of companies
anticipated a decrease in total income over the next
12 months and 6% anticipated a decrease in total income
over the next three years. By contrast, no research
organisations anticipated a fall in income in either period.
The average expected quantum change in income for
companies over the coming 12 months was 47% and for
research organisations, 8%. Over the next three years the
forecast quantum change in income for companies was
136% and for research organisations, 18%.
An almost equal proportion of companies anticipated
that their R&D expenditure would either increase or
remain the same over the coming 12 months (42%
remain the same, 45% increase) and three years (44%
remain the same, 45% increase). The majority of research
organisations anticipated that their R&D expenditure
would increase over the coming 12 months (56%) and
three years (83%).
Respondents believed that improved industry
representation and an increased commitment by
government organisations to become early adopters of
Queensland innovations were two factors important for
future expansion of the industry.
For 71% of companies, limited access to finance was
having an impact on their organisation. While 43% of
companies (96) were optimistic or very optimistic that
this barrier could be overcome, 19% were pessimistic or
very pessimistic. Other barriers to future income growth
that were highly ranked included (1) limited access to
government grant funding (grants accounted for only 1.5%
of company income, and companies attracted only 2.4% of
the value of all grants reported in the survey);
(2) increased domestic and/or international competition;
and (3) the small size of the domestic market.
The three greatest risks or challenges facing respondents
were (1) access to sufficient capital for growth or market
entry; (2) the high Australian dollar; and (3) regulatory
issues.
4 Ibid.
5 Excluding persons paid by commission only, consultants or contractors, non-salaried directors and volunteers.
6 Note that many grants are awarded for periods covering 2-3 years and, as such, the amount awarded may not be counted as income in the year that it
was awarded.