KEY POINTS
- In the ABS's Summary of IT Use and Innovation in Australian Businesses 2005-06, 38.9% of Australian businesses reported implementing an innovation.
- Approximately equal proportions of businesses reported introducing new operational processes and new organisational/managerial processes, respectively, at 21%. About 19% of businesses introduced new goods or services during the reference period, while 14% of businesses introduced new marketing methods.
- A greater proportion of large businesses than smaller ones innovated during the reference period. About 74% of businesses with 200 or more employees implemented an innovation in 2005-06, this compares with 49% of businesses with 5-19 employees introducing any innovation.
- The proportion of businesses reporting implementing an innovation in 2005-06 by broad industry categories are as follows: 36% in Mining, 45% in Manufacturing and 38% in Services.
FACTS AND FIGURES
The data was sourced from results of the ABS 2005-06 Business Characteristics Survey (BCS) (ABS, 8166.0). For the BCS, the survey population was expanded to include firms with 0-4 employees and two additional industry sectors: Health and Community Services and Personal and Other Services. Due to the change in the survey population and the level of stratification, the ABS advises against comparing the current set of data with previous surveys.
Four types of innovation can be distinguished: product (good and service) innovation, process innovation, marketing innovation and organisational innovation.
Summary of the 2005-06 Survey (Source: ABS, 8166.0)
|
Employment Size |
Implemented
Innovation
(%) |
Innovation still in development
(%) |
Abandoned innovation
(%) |
Any innovative activity
(%) |
|
0-4 |
31.5 |
9.5 |
5.9 |
35.4 |
|
5-19 |
48.8 |
15.4 |
8.4 |
51.6 |
|
20-199 |
65.5 |
18.6 |
8 |
67.7 |
|
>200 |
74 |
28.6 |
9 |
76.5 |
|
Total Businesses |
38.9 |
11.8 |
6.8 |
42.4 |
|
Industry |
Innovation type |
|
Goods/
services
(%) |
Operational
process
(%) |
Organisational/
managerial
(%) |
Marketing
methods
(%) |
Proportion of innovating businesses (%) |
|
Mining |
11.3 |
17.4 |
23.1 |
10.6 |
36.3 |
|
Manufacturing |
19.3 |
31.5 |
21.5 |
16.3 |
44.6 |
|
Services* |
19.4 |
19.9 |
20.6 |
14.2 |
38.4 |
|
Total Businesses |
19.3 |
20.8 |
20.7 |
14.3 |
38.9 |
* Calculated as a weighted average of industries in ANZSIC93 Divisions D to L, O, P and Q.
The ABS adopts the definitions of the Oslo Manual (3rd edition, 2005, OECD/Eurostat) as the basis for their innovation surveys.
DEFINITIONS
"An innovation is the implementation of a new or significantly improved product (goods or services), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations" (Oslo Manual 3rd ed., 2005). The minimum requirement for an innovation is that the product, process, marketing method or organisational method must be new (or
significantly improved) to the firm.
Innovation Types
- A product innovation is the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics.
- A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software.
- An organisational innovation is the implementation of a new organisational method in the firm’s business practices, workplace organisation or external relations.
- A marketing innovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.