8158.0 - Innovation in Australian Business, 2008-09 
Quality Declaration
Quality Declaration ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 26/08/2010
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During the year ended 30 June 2009, 40% of Australian businesses reported being innovation-active (i.e. those which undertook any innovative activity), a decrease of 5 percentage points from 45% in 2007-08. The proportion of all businesses which introduced at least one type of innovation dropped 4 percentage points from 39% in 2007-08 to 35% in 2008-09.
Across the three innovation statuses, larger businesses were more likely to have undertaken some form of innovative activity than small businesses. It is important for users to note that the population varies considerably between each employment size group. For example, an innovation-active rate of 67% for businesses with 200 or more persons employed represents approximately 2,000 businesses, whereas an innovation-active rate of 33% for businesses with 0-4 persons employed represents approximately 143,000 businesses. Innovation-active businesses Almost 40% of Australian businesses (approximately 285,000 businesses) were classified as innovation-active (businesses that undertook any form of innovative activity) during 2008-09. The Wholesale trade industry recorded the highest proportion of businesses that were innovation-active (51%). This was followed by the Manufacturing, and Information media and telecommunications industries at 48% and 47% respectively. The Construction industry recorded the lowest proportion of innovation-active businesses at 31%, slightly below Transport, postal and warehousing (32%). Innovating businesses For the year ended 30 June 2009, 35% of businesses reported the introduction of at least one type of innovation. The proportion of innovating businesses increased with each successive employment size range, from 28% of businesses with 0-4 persons employed to 61% of businesses with 200 or more persons employed. Organisational/managerial processes were the highest reported type of innovation (19%), followed by goods and/or services (18%), marketing methods (17%) and operational processes (16%). The Wholesale trade industry recorded the highest proportion of innovating businesses (44%), followed by Manufacturing (42%). The Construction industry recorded the lowest proportion of innovating businesses (26%). By innovation type, the Wholesale trade industry recorded the highest proportion of businesses that introduced new or significantly improved goods and/or services (28%), followed by Information media and telecommunications (26%). The Construction and Mining industries had the lowest proportion of businesses which reported the introduction of new goods and/or services (both 10%). The introduction of operational processes was most likely to have occurred in the Manufacturing industry (29%), with the Wholesale trade and Information media and telecommunications industries also having recorded relatively high proportions (22% and 19% respectively). The highest proportions of businesses that introduced organisational/managerial processes were recorded by Wholesale trade (24%), Rental, hiring and real estate services (23%) and Professional, scientific and technical services (22%). New or significantly improved marketing methods was most commonly reported by businesses in Art and recreation services (27%). In comparison, businesses in the Mining industry were least likely to have introduced marketing methods (10%). Innovation still in development Overall, 18% of all businesses reported that they had innovation still in development as at 30 June 2009. The proportion of businesses with innovation still in development increased with each successive employment size range, from 14% of businesses with 0-4 persons employed, to 36% of businesses that employed 200 or more persons. The most frequently reported types of innovation still in development as at 30 June 2009, were new goods and/or services and new marketing methods (both 9%). The proportion of businesses with innovation still in development for goods and/or services, operational processes and organisational/managerial processes increased with each successive employment size range. However, for marketing methods, businesses with 5-19 and 20-199 persons employed both reported higher proportions than businesses with 200 or more persons employed. At industry level, both Wholesale trade and Information media and telecommunications recorded the highest proportion of businesses with innovation still in development as at 30 June 2009 (25%). Construction recorded the lowest proportion of businesses with innovation still in development (13%). Abandoned innovation During the year ended 30 June 2009, 6% of all businesses abandoned the development of at least one type of innovative activity. With the exception of businesses with 0-4 persons employed (6%), all other employment size ranges recorded abandoned innovation activity at 8%. Businesses in the Manufacturing industry were the most likely to have abandoned innovative activity (11%), while the least likely were businesses in Mining, Electricity, gas, water and waste services and Administrative and support services (all 4%).
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