FED: R&D spending down three years running survey

AAP General News (Australia)
08-30-1999
FED: R&D spending down three years running survey

CANBERRA, Aug 30 AAP - Manufacturing industry spending on research and development (R&D)
had declined over the past three years since the government cut tax concessions, a survey
found today.

Total expenditure on R&D by manufacturing had declined from $2.3 billion in 1995/96 to
$1.9-$2 billion in 1998/99, the Australian Industry Group (AIG) survey found.

"Reflecting the competitive pressure on industry in recent years, the most important factor
driving increased R&D expenditure was the need for productive development to expand markets
and enhance competitiveness," AIG said.

"On the flip side, the companies that reduced R&D expenditure in the last three years did
so because of profit pressure."

The reduction in R&D tax concessions from 150 per cent to 125 per cent was a major or
moderate consideration for one in four companies which cut spending, the survey found.

"If Australia is to continue to maintain its competitiveness in the global market place, it
is essential that public support for business R&D initiatives be strengthened," AIG said.

AAP rmg/mfh/ah

KEYWORD: RESEARCH

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