Australia: University R&D Spending Back To Pre-COVID Levels

Higher Education Expenditure on R&D was $16.4 billion in 2024, up 17 per cent from 2022 and the highest biennial rate of growth since 2012 (18 per cent), according to new data released today by the Australian Bureau of Statistics (ABS).

Tom Lay, ABS head of business statistics, said: 'In 2024, higher education spending on R&D reached its highest level since COVID-19 restrictions were lifted in 2022. This recovery was supported by the return of international students increasing university revenue streams and staffing levels.'

A key component of the increase in higher education R&D spending in 2024 was the $1.0 billion rise (17 per cent) in labour costs. More research funding enabled universities to increase their research activity and hire more staff, particularly academic staff. Additionally, many universities had their first pay increases since the deferral of pay rises during COVID-19 and the transition of casual staff to permanent positions.

'Higher education spending as a share of GDP has increased from 0.54 per cent in 2022 to 0.59 per cent in 2024. This is the first increase for this sector since 2018 and reflects a return to more normal operations,' Mr Lay said.

Health sciences had the largest rise in R&D expenditure by fields of research in dollar terms, up $574 million (37 per cent). This was followed by Biomedical and clinical sciences, up $438 million (14 per cent) and Biological sciences, up $278 million (26 per cent). The highest percentage growth rate was for Indigenous studies, up 54 per cent ($140 million).

'Health and medical research showed strong growth in 2024, contributing more than half the total spending growth in higher education R&D. The rise in health and medical research reflects greater university success in securing competitive grant funding, as universities seek to diversify their research funding bases, attract high quality research staff, and increase their collaboration with businesses and industries,' Mr Lay said.