Australia Yearbook - 2009-10

Research and development (R and D)
The Organisation for Economic Co-operation
and Development (OECD) defines R and D as
comprising 'creative work undertaken on a
systematic basis in order to increase the stock of
knowledge, including knowledge of man, culture
and society, and the use of this stock of
knowledge to devise new applications'. R and D
activity is characterised by originality. It has
investigation as a primary objective, the outcome
of which is new knowledge, with or without a
specific practical application, or new or improved
materials, products, devices, processes or
services. R and D ends when work is no longer
primarily investigative.
Graph 18.14 shows the type of R and D
expenditure by the mining industry. For the
period 1996–97 to 2006–07 other current
expenditure other than labour costs is the major
component of R and D expenditure for the
mining industry, accounting for 79% of total
mining R and D expenditure in 2006–07. This
category includes: expenses on materials, fuels
and other inputs; rent, leasing and hiring; repairs
and maintenance; payments to outside
organisations for use of specialised testing
facilities or for analytical work, engineering or
other specialised services in support of R and D
projects carried out by the business; commission
and consultant expenses for research projects
carried out by the business (except direct labour
costs); software for own account produced as
part of R and D; and the proportion of
expenditure on general services and overheads
attributable to R and D activity. In the mining
industry these expenses increased by $1,649m
(464%), from $355m in 1996–97 to $2,045m in
2006–07. The amounts spent on capital
expenditure and labour costs increased by $81m
(68%) and $243m (277%) respectively over the
same period. As a result, capital expenditure as a
proportion of total mining R and D expenditure
fell to 8% in 2006–07, significantly lower than the
21% recorded in 1996–97. Labour costs as a
proportion of total mining R and D expenditure
fell from 16% to 13% over this period.
During the period 1996–97 to 2006–07, the
mining industry's contribution to total (all
industries) R and D expenditure rose from 13% to
21%. The manufacturing industry's share of total
R and D expenditure continued to be the highest,
accounting for 33% in 2006–07.
Production and trade of
minerals
Mineral commodities production
Tables 18.15 and 18.16 show the quantity and
value respectively of selected minerals (including
oil and gas) produced in Australia.
In the period 2002–03 to 2006–07 the most
significant increases in production were for
manganese ore (85%), liquefied natural gas (84%)
and leucoxene (37%). Iron ore and concentrate,
ilmenite, saleable black coal, bauxite and natural
gas increased in production by 36%, 25%, 18%,
17% and 12% respectively.
Production of gold, lead, nickel, silver, zinc,
brown coal, crude oil and diamonds decreased
18.14 MINING INDUSTRY, Type of expenditure on R&D
Capital expenditure
Labour costs
Other current expenditure
Total mining
$m
3000
2000
1000
0
1996–97 1998–99 2000–01 2002–03 2004–05 2006–07
Source: Research and Experimental Development, Businesses, Australia (8104.0).
536 Year Book Australia 2009–10