INNOVATING BUSINESSES

Innovating businesses, by employment size(a), by type - 2006-07
		0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
		%	%	%	%	%
Businesses which introduced or implemented any new or significantly improved:
	goods or services	15.1	23.8	27.5	31.1	18.7
	operational processes	13.3	20.5	31.8	41.8	17.0
	organisational/managerial processes	12.9	19.7	32.0	39.1	16.5
	marketing methods	10.5	16.4	18.4	22.0	12.9
Innovating businesses		26.4	40.9	50.8	60.7	32.7
(a) Proportions are of all businesses in each employment size category.

The most frequently reported type of innovation introduced or implemented by businesses was new or significantly improved goods or services (19%), closely followed by new or significantly improved operational processes (17%) and new or significantly improved organisational/managerial processes (16%), then new or significantly improved marketing methods (13%).

For each type of innovation, the larger the employment size of the business the more likely the business had introduced an innovation of that type. However, the range of proportions reported across employment size categories varied considerably for each type of innovation introduced. The largest difference was 29 percentage points for new operational processes, ranging from 13% (0-4 persons employed) to 42% (200 or more persons employed). By contrast, new marketing methods were introduced by 10% of businesses that employed 0-4 persons and 22% of businesses that employed 200 or more persons (a range of 12 percentage points).

The industry with the highest proportion of innovating businesses was Information Media and Telecommunications at 46% followed by Manufacturing and Wholesale Trade, both 44%. Construction reported the lowest proportion of innovating businesses at 23%, slightly below Transport, Postal and Warehousing (26%).

Information Media and Telecommunications (30%) was also the industry which had the highest proportion of businesses that reported having introduced new goods or services. Manufacturing recorded the highest proportion of businesses which had introduced new operational processes at 27%, followed by Information Media and Telecommunications at 24%. Financial and Insurance Services (25%) had the highest proportion of businesses reporting new organisational/managerial processes and Information Media and Telecommunications (24%) had the highest proportion of businesses reporting new marketing methods.

Mining (10%) had the lowest proportion of businesses which reported introduction of new goods or services, while Accommodation and Food Services (12%) reported the lowest proportion of new operational processes. Retail Trade (11%) had the lowest proportion of new organisational/managerial processes and Mining, at 4%, had the lowest proportion of new marketing methods.

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