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

Queensland Life Sciences Industry Report 2012
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While the proportion of total expenditure on salary and
wages was comparable for companies and research
organisations, the proportion of expenditure on R&D and
capital items differed markedly. Average R&D expenditure
accounted for less than 10% of total expenditure among
companies but 27% among research organisations. Only 6%
of company expenditure was for capital items, compared to
20% for research organisations.
Expenditure data was also analysed according to the division
into which the respondent was classified (Biotechnology or
TMD) — this breakdown is shown in Table 41.
TABLE 41: Reported expenditure in biotechnology and
TMD sectors
Respondents Total ($m) Average ($m)
Total Expenditure
($m)
92 $1091 $11.9
Biotechnology 50 $646 $12.9
TMD 42 $445 $10.6
Wage and Salary
Expenditure ($m)
85 $564 $6.6
Biotechnology 45 $308 $6.9
TMD 40 $255 $6.4
R&D Expenditure
($m)
83 $189 $2.3
Biotechnology 44 $173 $3.9
TMD 39 $16 $0.4
Capital
Expenditure ($m)
86 $134 $1.6
Biotechnology 46 $106 $2.3
TMD 40 $28 $0.7
The total and average expenditure on wages, R&D and
capital items for companies by industry sub-sector is
tabulated below (Table 42).
TABLE 42: Reported expenditure by companies by industry subsector (75 respondents)
Total Expenditure
($606m)
N Average
($m, rounded)
7.4.2 Estimated Queensland-Wide Expenditure in the Life
Sciences Industry
Queensland-wide industry expenditure estimates were
developed from a statistical extrapolation of the data
collected from survey respondents. Estimates for 2009 and
2011 were developed with a similar statistical methodology.
Estimates for the 2007 survey cannot be compared at the
same level, as some of these figures are not available for the
TMD sector and, in some cases, the questions asked in 2007
required different inputs, necessitating some alterations in
the statistical methodology.
Estimates of total expenditure were largely similar in 2009
and 2011. Wages expenditure and capital expenditure rose
whilst R&D expenditure dropped.
Wage and salary expenditure estimates across the
Queensland industry grew by 98.6% since 2009, which
seems incongruous with a drop in employment estimates of
28.5% over the same period. An analysis of raw survey data
revealed that wage and salary expenditure accounted for
52% of total expenditure reported in 2011 compared to 29%
in 2009.
There were at least two factors which may have influenced
the reporting on wages. Participants had the option to
provide an actual figure for wage and salary expenditure or
express it as a percentage of total expenditure. In addition,
survey participants were asked to estimate the number of
employees as at June 30, 2011. Elevated wage and salary
expenditure relative to the number of employees reported
could indicate that a significant number of employees were
lost toward the end of the financial year.
Wage and Salary
Expenditure ($292m)
N Average
($m, rounded)
R&D Expenditure
($57m)
N Average
($m, rounded)
All respondents 75 $8.1 69 $4.2 67 $0.9
Pharmaceuticals, Vaccines or Drug
Discovery
10 $13.1 9 $8.7 9 $3.4
Diagnostics 4 $8.5 3 $1.7 4 $0.1
Medical Devices and Equipment 13 $1.2 12 $0.8 11 $0.1
Complementary Medicines 7 $19.9 5 $5.4 5 $0.2
Functional Food/Nutraceuticals 5 $1.2 5 $0.6 5 $0.4
Animal Health 5 $2.4 5 $0.8 5 $0.2
Biotechnology 9 $11.0 8 $2.8 8 $1.9
Industry Service Provider 17 $9.6 17 $8.4 16 $0.3
Other 5 $1.4 5 $0.6 4 $0.0