NOVELTY

The degree of novelty of an innovation and whether the innovation is developed within the business or externally are important factors in analysing innovation. In order to assess development activity, businesses which had introduced or implemented an innovation (i.e. innovating businesses) were asked:

• whether the new or significantly improved goods, services, processes or methods they had introduced or implemented were new to the world, Australia, the industry, or to the business only (these categories are mutually exclusive); and
• who developed the new or significantly improved goods, services, processes or methods.

Businesses could provide more than one response, i.e. they were asked to report the degree of novelty and who developed the innovation for all of their innovations. For example, a business that had introduced four new goods or services could provide a response against each of the degrees of novelty specified.

For the two topics included in this section, it is not possible to release these data by business employment size or industry due to confidentiality requirements.

Introduced innovation(a)(b), by innovation type, by degree of novelty - 2006-07
		New or significantly improved:
		goods or services	operational processes	organisational/managerial processes	marketing methods
		%	%	%	%
Degree of novelty of the introduced or implemented innovation which was:
	new to the world	9.0	3.8	0.7	3.3
	new to Australia but not the world	12.8	3.8	0.8	5.5
	new to the industry within Australia but not new to Australia or to the world	12.6	6.6	5.9	5.6
	new to the business only (i.e. none of the above)	71.0	90.0	94.0	90.3
(a) Proportions are of innovating businesses ONLY (ie. those who introduced or implemented innovation).
(b) Businesses could provide more than one answer to each question (ie. report for all of their goods, services, processes or methods).

For all types of innovation, relatively small proportions of businesses introduced innovation that was New to the world with the majority being New to the business only.

Source of development of innovation, (a)(b), by innovation type, by source - 2006-07
		New or significantly improved:
		goods or services	operational processes	organisational/managerial processes	marketing methods
		%	%	%	%
Who developed the innovation:
	The business or related company only	73.2	76.6	83.7	69.9
	The business in cooperation with other businesses or institutions	17.7	18.4	15.9	24.8
	Other businesses or institutions	12.8	9.1	4.9	9.7
(a) Proportions are of innovating businesses ONLY (ie. those who introduced or implemented innovation).
(b) Businesses could provide more than one answer to each question (ie. report for all of their goods, services, processes or methods).

Development of innovation within The business or a related company only was the most commonly reported for all four types of innovation. Introducing or implementing a new or significantly improved organisational/managerial process originally developed by Other businesses or institutions was the least likely to occur amongst the types of innovation or sources measured.

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