8158.0 - Innovation in Australian Business, 2008-09 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 26/08/2010   
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Contents >> SUMMARY OF FINDINGS >> Innovation by Type and Status

INNOVATION BY TYPE AND STATUS

Goods and/or services

The introduction of new or significantly improved goods and/or services during the year ended 30 June 2009 was reported by 18% of all businesses. New services were more likely to be introduced than new goods (12% and 10% respectively). The proportion of businesses with new goods and/or services still in development as at 30 June 2009 was 9%. The proportion of businesses which abandoned the development or introduction of new goods and/or services during the year ended 30 June 2009 was 3%.

Goods and/or services innovation(a), by employment size, by status, 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
7.2
13.3
14.3
15.6
9.7
services
10.4
15.0
15.0
19.5
12.3
goods and/or services
14.8
23.2
24.1
30.4
18.2
Businesses with any activity related to new or significantly improved goods and/or services which was:
still in development(b)
8.3
9.9
12.4
16.8
9.2
abandoned
2.7
3.5
4.1
5.0
3.1

(a) Proportions are of all businesses in each employment size category.
(b) As at the end of the reference period.


The proportion of businesses which introduced new goods and/or services increased through successive employment size ranges.

By industry, the propensity to introduce new goods was highest among businesses in those industries traditionally associated with goods, such as Wholesale trade (24%), Retail trade (20%) and Manufacturing (19%). Businesses in Arts and recreation services were most likely to report having introduced new services (22%) during the year ended 30 June 2009. The Information media and telecommunications industry recorded the highest proportion of businesses with new goods and/or services still in development at 17%, while the Manufacturing industry had the highest proportion of businesses that abandoned activity associated with the development of new goods and/or services (6%).


Operational Processes

The introduction of any new or significantly improved operational processes during the year ended 30 June 2009, was reported by 16% of all businesses. New supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing was the most commonly reported type of operational processes innovation at 11%, followed by methods of manufacturing or producing goods and/or services (6%) and logistics, delivery or distribution methods for goods and/or services (4%). New operational processes still in development as at 30 June 2009 were reported by 7% of all businesses. A small proportion of businesses reported abandoning innovative activity that had been intended to result in the development or introduction of new or significantly improved operational processes (2%).

Operational process innovation(a), by employment size, by status, 2008 - 09

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:
methods of manufacturing or producing goods and/or services
4.0
7.8
10.9
13.8
5.8
logistics, delivery or distribution methods for goods and/or services
3.0
5.5
8.4
13.0
4.2
supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing
6.8
15.3
20.3
32.8
10.6
other operational processes
np
np
0.4
0.6
0.1
any operational processes
11.1
22.5
30.3
42.4
16.3
Businesses with any activity related to new or significantly improved operational processes which was:
still in development(b)
5.2
10.1
13.1
23.8
7.4
abandoned
1.7
2.6
2.1
4.2
2.0

np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each employment size category.
(b) As at the end of the reference period.


The proportion of businesses introducing new or significantly improved operational processes increased with each successive employment size range. Businesses with 200 or more persons employed were almost four times as likely to introduce any new operational process than businesses with 0-4 persons employed (42% compared to 11%).

Manufacturing recorded the highest proportion of businesses introducing methods of manufacturing or producing goods and/or services, at 22%. Businesses in Wholesale trade and Transport, postal and warehousing (both 10%), were the most likely to introduce new or significantly improved logistics, delivery or distribution methods for goods and/or services. New supporting activities for business operations was most frequently reported by businesses in Financial and insurance services and Professional, scientific and technical services (both 15%), while the Electricity, gas, water and waste services and Construction industries recorded the lowest proportion for this type of operational process innovation, both 7%.

Operational process innovation still in development as at 30 June 2009 was most frequently reported by businesses in the Arts and recreation services industry (12%). The Financial and insurance services industry recorded the highest proportion of businesses with abandoned innovative activity related to operational processes during the year ended 30 June 2009 (4%).


Organisational/managerial processes

New or significantly improved organisational/managerial processes are defined as a significant change in business strategies, structures or routines which aim to improve business performance. For the 2008-09 reference period, there was a slight refinement to the survey question used. This enabled an improvement in the data quality and improved comparability with recent international collections (for example, the 2008 European Community Innovation Survey).

During the year ended 30 June 2009, new organisational/managerial process innovation was introduced by 19% of all businesses. As at 30 June 2009, 6% of all businesses had reported ongoing development of activities intended to result in organisational/managerial process innovation. During the year ended 30 June 2009, 2% of businesses abandoned this type of innovation.

Organisational/managerial process innovation(a), by employment size, by status, 2008 - 09

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:
knowledge management processes to better use or exchange information, knowledge and skills within the business
7.7
16.1
18.1
26.4
11.2
business practices for organising procedures
4.7
9.8
14.3
22.4
7.2
methods of organising work responsibilities and decision making
6.9
16.6
21.2
26.0
11.2
methods of organising external relations with other businesses or public institutions
3.7
4.9
5.2
8.6
4.2
other organisational/managerial processes
-
-
0.1
0.7
-
any organisational/managerial processes
14.0
26.3
32.1
41.9
19.4
Businesses with any activity related to new or significantly improved organisational/managerial processes which was:
still in development(b)
3.8
9.1
10.7
16.8
6.1
abandoned
1.7
2.7
1.8
2.7
2.0

- nil or rounded to zero (including null cells)
(a) Proportions are of all businesses in each employment size category.
(b) As at the end of the reference period.


The two most commonly reported new organisational/managerial processes to be introduced were knowledge management processes to better use or exchange information, knowledge and skills within the business and new methods of organising work responsibilities and decision making (both 11%).

The proportion of businesses that reported the introduction of new organisational/managerial processes increased with each successive employment size range, from 14% of businesses with 0-4 persons employed to 42% of businesses with 200 or more persons employed.

Businesses in the Wholesale trade industry were the most likely to have introduced any new organisational/managerial processes (24%), with the least reported being by businesses in Construction (15%). By type of organisational/managerial processes, businesses in Rental, hiring and real estate services were the most inclined to introduce new knowledge management processes to better use or exchange information, knowledge and skills within the business and new business practices for organising procedures (16% and 11% respectively). Businesses in the Financial and insurance services, Rental, hiring and real estate services and Other services industries were most likely to report the introduction of new methods of organising work responsibilities and decision making (all 15%). The Electricity, gas, water and waste services, Transport, postal and warehousing and Administrative and support services industries recorded the highest proportion for the introduction of new methods of organising external relations with other businesses or public institutions, all at 6%.

Businesses within the Information media and telecommunications, Financial and insurance services and Arts and recreation services industries were the most likely to have new organisational/managerial processes still in development at 30 June 2009 (all 9%). The Manufacturing industry (4%) recorded the highest proportion of businesses to abandon the development or introduction of any new organisational/managerial processes during the year ended 30 June 2009.


Marketing Methods

A new marketing method is defined as a significant change in the design, packaging, placement, pricing, promotion or sales method aimed at increasing the appeal of a business's goods and/or services or to enter new markets. For the 2008-09 reference period, there was a slight refinement to the survey question used. This enabled an improvement in the data quality and improved comparability with recent international collections (for example, the 2008 European Community Innovation Survey).

The introduction of any new or significantly improved marketing methods during the year ended 30 June 2009 was reported by 17% of all businesses. The type of innovative marketing method most likely to be introduced was new media or techniques for product promotion, reported by 12% of all businesses.

Marketing method innovation(a), by employment size, by status, 2008 - 09

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses which introduced any new or significantly improved:
changes to the design or packaging of goods and/or services
2.8
6.8
6.4
9.8
4.4
media or techniques for product promotion
9.3
14.4
16.0
17.8
11.5
methods of product placement or sales channels
2.2
3.7
6.0
7.4
3.0
methods of pricing goods and/or services
4.3
5.0
6.7
5.5
4.7
other marketing methods
0.2
-
np
0.4
0.1
any marketing methods
14.4
20.8
24.1
26.4
17.2
Businesses with any activity related to new or significantly improved marketing methods which was:
still in development(b)
6.6
11.5
12.9
9.3
8.6
abandoned
3.1
2.9
3.9
2.4
3.1

- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all businesses in each employment size category.
(b) As at the end of the reference period.


The proportion of businesses that introduced any new marketing methods increased with each successive employment size range, from 14% of businesses with 0-4 persons employed to 26% of businesses with 200 or more persons employed. By type of marketing method, businesses with 20-199 persons employed reported the highest proportion of new methods of pricing goods and/or services (7%). The most reported type of marketing innovation to be introduced for all employment sizes was new media or techniques for product promotion (12%).

Businesses within the Arts and recreation services industry were the most likely to have introduced any new or significantly improved marketing methods during the year ended 30 June 2009, at 27%. The introduction of significant changes to the aesthetic design or packaging of goods and/or services was most common among businesses in Wholesale trade (8%). This industry also recorded the highest proportion of businesses with new methods of product placement or sales channels (8%). New media or techniques for product promotion introduced was highest among businesses in the Arts and recreation services industry (22%), while the Accommodation and food services industry recorded the highest proportion of businesses which introduced new methods of pricing goods and/or services (10%).

By industry, the proportion of businesses reporting new or significantly improved marketing methods still in development as at 30 June 2009, ranged from 4% for Mining, to 14% for Wholesale trade. The Financial and insurance services industry recorded the highest proportion of abandoned activity associated with the development or introduction of new marketing methods (6%).




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