Higher education R&D spending jumps 17% as health sciences lead: ABS
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The news: Higher education expenditure on research and development reached $16.4 billion in 2024, marking a 17% increase from 2022 and the highest biennial growth rate since 2012, according to latest figures from the Australian Bureau of Statistics (ABS).
The numbers: The increase in spending was driven by the health sciences faculty, which saw a 37% rise to $574 million, followed by biomedical and clinical sciences, up 14% and 26% respectively. Indigenous studies represented the highest growth, surging 54% to $140 million during the period.
The context: The increase in spending also contributed to a $1 billion rise in labour costs, as expanded research funding enabled universities to increase their research activity and hire additional staff.
The ABS also noted that many universities implemented their first pay increases since Covid and transitioned casual staff to permanent positions.
What they 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,” ABS head of business statistics Tom Lay said.
“Higher education spending as a share of GDP has increased from 0.54% in 2022 to 0.59% in 2024. This is the first increase for this sector since 2018 and reflects a return to more normal operations,” he added.
The source: ABS
