INNOVATION ACTIVITY OF BUSINESSES
Innovation is generally considered to be the development, introduction or implementation of new or significantly improved goods, services or processes. Innovation is a key driver of economic growth.
The 2007-08 innovation data were collected in the 2007-08 Business Characteristics Survey (BCS). This survey collected Information about four broad types of innovative activity undertaken by businesses in Australia: goods or services; operational processes; organisational/managerial processes; and marketing methods. The survey also covered three statuses of innovation: introduced or implemented; still in development; and abandoned.
Based on the combination of type and status of innovative activity, two statistical measures of business innovation have been produced:
- Innovating businesses - businesses that introduced or implemented an innovation during the survey reference period.
- Innovation-active businesses - businesses that had undertaken any innovative activity, including the introduction or implementation of an innovation, and/or businesses with an incomplete and/or abandoned innovative activity.
During 2007-08, innovating businesses in Australia represented 39.1% of all businesses; innovation which was incomplete at end-June 2008 was undertaken by 22.5% of all businesses; innovation which had been abandoned during the year was undertaken by 6.9% of all businesses; and 44.9% of businesses were innovation-active in the period (table 26.7).
26.7 Businesses involved in innovation(a)(b) |
|
 | | % |
|
| Businesses which introduced or implemented: | |
| Any new or significantly improved goods or services | 21.9 |
| Any new or significantly improved operational processes | 17.6 |
| Any new or significantly improved organisational/managerial processes | 19.0 |
| Any new or significantly improved marketing methods | 14.6 |
| Any of the above (i.e. Innovating businesses) | 39.1 |
| Businesses with innovative activity which was still in development(c) | 22.5 |
| Businesses with innovative activity which was abandoned(c) | 6.9 |
| Proportion of businesses that were innovation-active | 44.9 |
|
| (a) Proportions are of all businesses. |
| (b) During 2007-08. |
| (c) Innovative activity includes any work that was intended to result in the introduction or implementation of new or significantly improved goods, services or processes. |
| Source: ABS Selected Characteristics of Australian Business, 2007–08 (8167.0). |
The proportion of innovating businesses increased with business size, ranging from 31.6% for businesses with 0-4 people employed, to 65.9% for those businesses with 200 or more people employed. At the industry level, Wholesale trade had the highest proportion of innovating businesses (51.4%), followed by Retail trade (50.9%) (table 26.8).
26.8 BUSINESSES INVOLVED IN INNOVATION(a), Selected characteristics(b) |
|
| | Businesses which:
|
| | were innovating | started but did not yet complete any innovative activity | started but abandoned any innovative activity | were innovation-active |
| | % | % | % | % |
|
| Employment size | | | | |
| 0-4 persons | 31.6 | 17.9 | 5.7 | 37.0 |
| 5-19 persons | 49.8 | 28.6 | 9.4 | 56.1 |
| 20-199 persons | 60.0 | 35.5 | 8.4 | 65.9 |
| 200 or more persons | 65.9 | 46.2 | 6.8 | 70.8 |
| Industry(c) | | | | |
| Mining | 39.0 | 26.4 | 5.5 | 48.9 |
| Manufacturing | 45.6 | 31.1 | 9.9 | 53.4 |
| Electricity, gas, water and waste services | 40.8 | 24.3 | 3.9 | 47.4 |
| Construction | 27.3 | 13.8 | 3.8 | 31.1 |
| Wholesale trade | 51.4 | 33.8 | 12.1 | 59.3 |
| Retail trade | 50.9 | 23.9 | 9.0 | 56.6 |
| Accommodation and food services | 38.6 | 19.8 | 8.5 | 43.2 |
| Transport, postal and warehousing | 31.3 | 15.0 | 3.3 | 35.2 |
| Information media and telecommunications | 45.1 | 30.2 | 7.4 | 55.4 |
| Financial and insurance services | 42.7 | 21.2 | 6.4 | 47.1 |
| Rental, hiring and real estate | 40.5 | 22.5 | 6.0 | 47.5 |
| Professional, scientific and technical services | 43.9 | 28.3 | 7.2 | 50.3 |
| Administrative and support services | 36.7 | 21.2 | 4.2 | 43.8 |
| Health care and social asistance | 30.4 | 20.8 | 5.4 | 35.7 |
| Arts and recreation services | 35.4 | 21.2 | 6.4 | 44.4 |
| Other services | 38.2 | 22.1 | 10.2 | 44.1 |
| Total | 39.1 | 22.5 | 6.9 | 44.9 |
|
| (a) During 2007–08. |
| (b) Proportions are of businesses in each category. |
| (c) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition. |
| Source: ABS Summary of IT Use and Innovation in Australian Business (8166.0). |
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