ABANDONED INNOVATIVE ACTIVITY

Businesses with abandoned innovative activity, by employment size(a), by type, 2010 - 11
		0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
		%	%	%	%	%
Businesses which abandoned the development or introduction of any new or significantly improved:(b)
	goods or services	2.0	3.1	3.2	4.2	2.5
	operational processes	1.0	1.7	1.2	4.8	1.3
	organisational/managerial processes	0.7	1.0	1.5	3.9	0.9
	marketing methods	3.0	3.6	2.0	1.7	3.1
Businesses with any abandoned innovative activity		5.4	6.3	5.7	7.3	5.7
(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.

During the year ended 30 June 2011, 6% of Australian businesses abandoned at least one innovative activity. Businesses with 0-4 persons employed reported the lowest proportion of abandoned innovative activity during 2010-11 (5%). The three remaining employment size ranges all recorded abandoned innovative activity at 6% or above.

New marketing methods was the most commonly reported type of innovative activity which was abandoned during the year ended 30 June 2011 (3%). This was followed by new goods or services (2%).

By industry, the highest proportion of abandoned innovative activity was reported by businesses in Arts and recreation services (11%), followed by Retail trade (10%).

The highest proportion of businesses that reported having abandoned the introduction or development of new goods and services during 2010-11 were in the Wholesale trade industry (5%). Businesses in Retail trade and Arts and recreation services were the most likely to report having abandoned new marketing methods (both 6%). Businesses in Arts and recreation services were the most likely to report having abandoned new operational processes (5%). Businesses in Mining, Wholesale trade, Information media and telecommunication and Arts and recreation services were the most likely to report having abandoned new organisational/managerial processes (all 2%).

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