The amount Australian business is spending on R&D fell by 5% in 1996-97, the first decrease ever recorded by the Australian Bureau of Statistics (ABS) since it started measuring R&D expenditure in the 1970s. According to the national statistical body, businesses spent A$4.12bn less on R&D during 1996-97 than they did in 1995-96. The biggest decrease – 22% – was recorded in the finance and insurance sector, and industry observers say this may be due to the large Y2K bills accruing in the finance industry. Analysts are also pointing the finger at the Federal Government cuts to industry assistance schemes.
