8167.0 - Selected Characteristics of Australian Business, 2008-09 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 16/09/2010   
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BUSINESS INNOVATION


Introduction

This section of the previous issue of this release contained some detailed tables for the incidence of innovation in Australian business. As indicated in the Explanatory Notes, the Business Characteristics Survey (BCS) collects key indicators of IT use and innovation in Australian business annually and more detailed information for each of these topics is collected every second year (i.e. in alternating years). The 2008-09 BCS had a focus on innovation and detailed outputs for the incidence of innovation and associated practices were released in Innovation in Australian Business, 2008-09 (cat. no. 8158.0) in August 2010. Therefore, only a small amount of summary data are included here and users are advised to view the dedicated innovation release for detailed outputs, including additional data cubes. For further details on defining innovation see Explanatory Notes 21 and 22.

Summary of innovation activity in Australian businesses, by key indicators, 2007 - 08 and 2008 - 09
2007-08
2008-09(a)
Total
Total
%
%
Businesses which introduced any new or significantly improved:
goods and/or services
21.9
18.2
operational processes
17.6
16.3
organisational/managerial processes
19.0
19.4
marketing methods
14.6
17.2
any of the above (i.e. innovating businesses)
39.1
35.0
Businesses with innovative activity which was:
still in development(b)
22.5
17.6
abandoned
6.9
6.5
Businesses with any innovative activity (i.e. innovation-active businesses)
44.9
39.8
(a) Data in this table were originally published in June 2010 in the release summary of IT Use and Innovation in Australian Business (cat. no. 8166.0).
(b) As at the end of the reference period, i.e. at 30 June 2008 and 2009.



Innovation-active businesses

The proportion of businesses which were innovation-active (i.e. those which undertook any innovative activity) decreased from 45% in 2007-08 to 40% in 2008-09.


Innovating businesses

During the year ended 30 June 2009, 35% of Australian businesses reported introducing at least one type of innovation, a decrease of four percentage points from 2007-08.

The proportion of businesses reporting the introduction of new goods and/or services decreased from 22% in 2007-08 to 18% in 2008-09. By contrast, there was a two percentage point increase in businesses introducing new marketing methods in 2008-09, to 17%.

Summary of innovation activity in Australian businesses(a), key indicators, by employment size, 2008 - 09
0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%
Businesses which introduced any new or significantly improved:
goods and/or services
14.8
23.2
24.1
30.4
18.2
operational processes
11.1
22.5
30.3
42.4
16.3
organisational/managerial processes
14.0
26.3
32.1
41.9
19.4
marketing methods
14.4
20.8
24.1
26.4
17.2
any of the above (i.e. innovating businesses)
28.1
43.9
51.8
60.9
35.0
Businesses with innovative activity which was:
still in development(b)
14.3
21.5
26.7
36.0
17.6
abandoned
5.8
7.5
7.7
7.8
6.5
Businesses with any innovative activity (i.e. innovation-active businesses)
32.8
48.4
58.2
66.7
39.8
(a) Proportions are of all businesses in each employment size category.
(b) As at the end of the reference period, i.e. at 30 June 2009.


Overall, and for each type, the proportion of businesses reporting the introduction of innovation increased with each successive employment size range.