8158.0 - Innovation in Australian Business, 2012-13 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 21/08/2014   
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INNOVATION BY TYPE AND STATUS


GOODS OR SERVICES

One in five businesses introduced new or significantly improved goods or services during the year ended 30 June 2013, with services more likely to be introduced than goods (13% compared with 11%).

Goods or services innovation, by employment size(a), by status, 2012-13

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved(b):
goods
7.7
14.7
17.4
15.8
10.6
services
10.8
15.9
23.4
20.0
13.4
goods or services
15.6
25.1
33.6
31.7
20.0
Businesses with any activity related to new or significantly improved goods and/or services that was(b):
still in development(c)
10.6
14.4
17.5
24.5
12.4
abandoned
2.7
3.1
2.0
2.2
2.8

(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category
(c) As at the end of the reference period 30 June 2013.


Businesses with 20-199 persons employed (34%) and with 200 or more persons employed (32%) were more than twice as likely to have introduced goods or services as businesses with 0-4 persons employed (16%).

Consistent with previous years, goods were most likely to be introduced by businesses within the Wholesale trade (27%), Retail trade (26%) and Manufacturing (24%) industries, whose main activities are traditionally associated with the sale and/or development of goods. In comparison, businesses in the Professional, scientific and technical services industry were the most likely to introduce services (22%). Businesses in the Information media and telecommunications industry were most likely to have goods or services still in development (24%), while the highest proportion of businesses that abandoned innovative activity associated with goods or services was in the Manufacturing industry (7%).

Further data relating to goods or services innovation can be accessed via the Downloads tab.


OPERATIONAL PROCESSES

Almost one in five businesses introduced new or significantly improved operational processes during the year ended 30 June 2013.

Results show that the most commonly introduced type of operational process was supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing (10%), followed by methods or manufacturing or producing goods or services (6%).

Overall, 10% of businesses had operational processes still in development, while a small proportion of businesses (2%) had abandoned innovative activity related to operational processes.

Operational processes innovation, by employment size(a), by status, 2012-13

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved(b):
methods of manufacturing or producing goods or services
4.1
8.3
10.8
12.5
6.0
logistics, delivery or distribution methods for goods or services
4.2
6.4
7.7
13.8
5.2
supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing
5.9
14.6
25.4
36.6
10.2
other operational processes
-
-
-
0.5
-
any operational processes
11.5
22.7
33.9
44.9
16.9
Businesses with any activity related to new or significantly improved operational processes that was(b):
still in development(c)
6.9
14.2
21.5
30.9
10.4
abandoned
1.4
2.2
1.9
1.8
1.7

- nil or rounded to zero (including null cells)
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2013.


The proportion of businesses that introduced new or significantly improved operational processes increased with each successive employment size range. Businesses with 200 or more persons employed were almost four times as likely to introduce operational processes as businesses with 0-4 persons employed (45% and 12% respectively).

Businesses in the Manufacturing industry were the most likely to have introduced methods of manufacturing or producing goods or services (19%) while logistics, delivery or distribution methods for goods or services were most likely to be introduced by businesses in the Wholesale trade industry (14%). Businesses in the Wholesale trade and Financial and insurance services industries were also most likely to introduce supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing (both 16%).

Results show businesses in the Mining industry were the most likely to have had innovative activity related to operational processes still in development (18%), while these businesses and those in the Administrative and support services industry were most likely to have abandoned innovative activity related operational processes (both 4%).

Further data relating to operational processes innovation can be accessed via the Downloads tab.


ORGANISATIONAL/MANAGERIAL PROCESSES

During the year ended 30 June 2013, new or significantly improved organisational/managerial processes were introduced by one in five Australia businesses. The most commonly introduced processes were
knowledge management processes to better use or exchange information, knowledge and skills within the business and methods of organising work responsibilities and decision making (both 11%). The process least likely to be introduced was organising external relations with other businesses or public institutions, at 4%.

Organisational/managerial processes innovation, by employment size(a), by status, 2012-13

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved(b):
knowledge management processes to better use or exchange information, knowledge or skills within the business
7.9
14.0
24.3
30.4
11.1
business practices for organising procedures
4.5
11.2
19.1
26.5
7.8
methods of organising work responsibilities and decision making
6.2
15.6
30.8
29.8
11.1
methods of organising external relations with other businesses or public institutions
2.9
5.3
8.6
10.4
4.1
other organisational/managerial processes
np
-
-
0.3
0.1
any organisational/managerial processes
14.2
25.9
42.8
48.2
20.2
Businesses with any activity related to new or significantly improved organisational/managerial processes that was(b):
still in development(c)
5.5
11.9
21.2
26.5
8.8
abandoned
1.1
1.3
2.5
1.3
1.3

- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2013.


The proportion of businesses that introduced any new or significantly improved organisational/managerial processes increased with each successive employment size range, from 14% of businesses with 0-4 persons employed to 48% of businesses with 200 or more persons employed.

Businesses in the Mining industry were more than twice as likely to have introduced any organisational/managerial processes as businesses in the Agriculture, forestry and fishing industry (26% compared with 12%). For each of the specified types of organisational/managerial process innovation, businesses in the Mining industry were most likely to have introduced the innovation during the year ended 30 June 2013. For example, almost one in six businesses in this industry introduced business practices for organising procedures (15%).

As at 30 June 2013, businesses in the Health care and social assistance industry were the most likely to have organisational/managerial processes still in development (14%).

Further data relating to organisational/managerial processes innovation can be accessed via the Downloads tab.


MARKETING METHODS

During the year ended 30 June 2013, results show almost one in five businesses introduced at least one type of new or significantly improved marketing method (19%), with the most common being media or techniques for product promotion (15%).

Marketing methods innovation, by employment size(a), by status, 2012-13

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved(b):
changes to the aesthetic design or packaging of good or services
1.9
4.7
6.7
8.1
3.2
media or techniques for product promotion
11.1
21.3
20.8
27.5
15.1
methods of product placement or sales channels
2.7
4.0
6.5
9.9
3.4
methods of pricing goods or services
3.2
5.4
5.3
9.8
4.1
other marketing methods
0.1
np
np
0.7
0.1
any marketing methods
14.2
25.1
28.4
35.4
18.8
Businesses with any activity related to new or significantly improved marketing methods that was(b):
still in development(c)
9.5
15.4
15.3
15.5
11.8
abandoned
2.9
3.6
3.3
1.4
3.2

np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2013.


Businesses with 200 or more persons employed were the most likely to have introduced any new or significantly improved marketing methods (35%), while businesses with 0-4 persons employed were the least likely (14%). Businesses in this smallest employment size range were also most likely to have any innovative activity related to marketing methods still in development (16%), while businesses with 5-19 persons employed were the most likely to have abandoned innovative activity related to marketing methods (4%).

By industry, businesses in the Other services industry were the most likely to have introduced any new or significantly improved marketing methods (33%), while businesses in the Transport, postal and warehousing industry were the least likely (8%). Changes to the aesthetic design or packaging of goods or services was most common among businesses in the Information media and telecommunications industry (9%). Businesses in the Other services industry were most likely to have introduced media techniques for product promotion (30%), while methods of product placement or sales channels were most likely to be introduced by businesses in the Wholesale trade, Retail trade and Information media and telecommunications industries (all 7%).

The proportion of businesses with marketing methods innovation still in development as at 30 June 2013 ranged from 4% of businesses in the Transport, postal and warehousing industry to 20% of businesses in the Retail trade industry. Businesses in the Other services and Retail trade industries were most likely to have abandoned innovative activity associated with marketing methods (both 5%).

Further data relating to marketing methods innovation can be accessed via the Downloads tab.