The Research and Development Survey 2008 (R&D Survey 2008) was a joint survey with the Ministry of Research, Science and Technology (MoRST). The R&D Survey measures the level of research and development activity, employment, and expenditure by business sector enterprises, government departments, government-owned trading entities, and universities.
The R&D Survey is carried out biennially by Statistics New Zealand. A more detailed report on the results of the 2008 survey will be published by Statistics NZ in June 2009.
Guide to interpreting the data
The following summary highlights the main points to consider when analysing the R&D Survey 2008 results. A full technical description is contained in the technical notes of this release.
Definition of R&D
Statistics NZ uses the following definition of R&D which is based on international best practice: “Research and experimental development comprises creative work undertaken on a systematic basis in order to increase the stock of knowledge. Any activity classified as R&D is characterised by originality. Investigation is a primary objective.”
Reference period for the survey
The reference period is for the last financial year that falls between 1 October 2007 and 30 September 2008.
Classification change
This is the first release of the R&D survey statistics on the basis of the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006. Further information can be found in the technical notes of this release.
R&D expenditure by sector
Total R&D expenditure in the 2008 reference period was $2,140 million. This amount represents an increase of 17 percent or $314 million from the 2006 reference period.
Survey results show that total R&D expenditure by the business sector was $913 million, a 20 percent increased compared with 2006. The biggest area of growth in the business sector was in the primary industries, which rose from $52 million in 2006 to $72 million in 2008 (up 40 percent).
Government sector R&D expenditure was $584 million, an increase of 23 percent from 2006. The university sector also grew, with expenditure increasing 9 percent to $643 million.
R&D as a proportion of gross domestic product
Total R&D expenditure represented 1.20 percent of New Zealand’s gross domestic product (GDP) in 2008, up from 1.16 percent in 2006. Between the 2006 and 2008 March years, New Zealand’s GDP current price expenditure measure increased 13 percent. The reported 17 percent increase in R&D expenditure resulted in its proportion of GDP increasing slightly from 2006.
R&D expenditure within the business and government sectors kept up with the overall growth in the New Zealand economy between the 2006 and 2008 reference periods, increasing slightly to 0.51 and 0.33 percent of GDP, respectively. University sector R&D decreased slightly as a proportion of GDP during the same period, from 0.38 percent down to 0.36 percent.
Despite increases, New Zealand’s total R&D expenditure continues to be relatively low when compared with other countries in the OECD. Australia reported its R&D expenditure at 2.01 percent of GDP in 2006, and the OECD average was 2.26 percent for the same period. International figures for the 2008 reference period are not yet available.
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Source of funds for R&D
Both the government and business sectors were significant funders of R&D in New Zealand. The government sector funded a total of $912 million or 43 percent of all R&D undertaken in 2008. This figure was just ahead of the business sector which funded 40 percent, or $859 million of R&D undertaken in New Zealand in 2008. The proportion of R&D expenditure funded by the New Zealand university sector and overseas funding sources in 2008 was 9 and 5 percent, respectively, with a further 4 percent being funded from other sources.
R&D by purpose of research
New Zealand's R&D expenditure can be broken down by purpose to highlight its main socio-economic objectives and the areas of the economy that will ultimately benefit. The 2008 R&D Survey saw the adoption of a different breakdown for information on the purpose of the research being undertaken. This change will facilitate more consistent reporting of R&D activities across New Zealand and Australia.
The most significant purpose of New Zealand’s R&D expenditure in 2008 was for primary industry purposes. These industries accounted for 19 percent (or $398 million), with the government sector the major contributor. Expenditure for manufacturing purposes was the second largest, representing 17 percent. Health, environment, and information and communication services were significant, each being a focus of 10 percent or more of total R&D expenditure.
Type of research and development activity
There are three main types of research and development activity identified in this release.
Basic research is carried out to pursue a planned search for new knowledge with either a broad underpinning reference, or no reference, to a likely application.
Applied research is investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific practical aim or objective and determines possible uses of basic research.
Experimental development is systematic work, drawing on knowledge gained from research and practical experience that is directed at producing new materials, products and devices; installing new processes, systems and services; or improving substantially those already produced or installed.
Of the total expenditure on R&D in 2008 ($2,140 million), $760 million (35 percent), was attributed to experimental development, $730 million (34 percent), to applied research, and the remaining $650 million (30 percent), to basic research.
The proportion of experimental development in the business sector was higher, with 60 percent in this category. A further 32 percent was attributed to applied research and 8 percent to basic research.
For the government sector, the most significant type of R&D was applied research at 43 percent, followed by basic research at 40 percent, while experimental development accounted for only 17 percent. For the university sector basic research made up 53 percent of its R&D, applied research at 28 percent, and experimental development at 18 percent.
For technical information contact:
Ritesh Anand or Meighan Ragg
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release...
Research and Development in New Zealand: 2008 will be released on 19 June 2009.