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8158.0 - Innovation in Australian Business, 2010-11 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 23/08/2012   
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FINANCIAL INDICATORS

Type of innovation related expenditure

Innovation-active businesses were asked to indicate the types of expenditure they had incurred in the development or introduction of new goods, services, processes or methods. Businesses were not asked to report dollars expended against each expenditure category and could indicate more than one type of expenditure.

INNOVATION-ACTIVE BUSINESSES: Types of expenditure for innovation purposes(a)(b), by employment size, 2010 - 11

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

Acquisition of machinery, equipment or technology
31.9
40.7
38.5
48.1
36.3
Training
24.6
28.2
33.1
45.2
27.3
Marketing activities undertaken to introduce new goods or services to the market
25.4
25.1
28.9
27.7
25.7
Research and experimental development for purposes of introducing innovation only:(c)
acquired from other businesses
2.1
3.8
3.3
7.4
3.0
undertaken by the business
8.2
9.3
13.8
19.7
9.4
any expenditure on Research and Experimental Development
9.4
10.4
14.7
22.9
10.6
Design, planning or testing
12.6
13.1
19.8
32.2
13.9
Acquisition of licences, rights, patents or other intellectual property
5.5
8.2
7.4
16.5
6.9
Other activities related to the development or introduction of new or significantly improved goods, services, processes or methods
0.9
0.3
0.6
1.0
0.6
No expenditure on any activities related to the development or introduction of new or significantly improved goods, services, processes or methods
40.8
33.8
31.5
26.2
36.7

(a) Proportions are of innovation-active businesses in each output category.
(b) Businesses were asked if they had incurred any expenditure during the reference period for activities related to innovation only. Businesses were not asked to report actual dollar expenditure for the items or activities included in this table.
(c) A detailed definition of Research and Experimental Development was not provided. No interpretation checks were made.

No expenditure on any activities related to the development or introduction of new or significantly improved goods, services, processes or methods was reported by more than one in three innovation-active businesses (37%). The proportion of businesses reporting no expenditure on any activities related to the development or introduction of new or significantly improved goods, services, processes or methods decreased with each successive employment size range, from 41% for businesses with 0-4 persons employed to 26% for businesses with 200 or more persons employed.

Across all employment size ranges, acquisition of machinery, equipment or technology was the most frequently reported form of expenditure for the purpose of innovation, from 32% of innovation-active businesses with 0-4 persons employed to 48% for businesses with 200 or more persons employed. Businesses with 200 or more persons employed were more likely to report across the majority of activities related to innovation expenditure. For example, businesses with 200 or more persons employed were more than twice as likely to report expenditure on design, planning or testing as businesses with 0-4 persons employed (32% and 13% respectively).

By industry, the highest proportion of businesses reporting acquisition of machinery, equipment or technology was Agriculture, forestry and fishing (52%) followed closely by Electricity, gas, water and waste services (51%). Businesses in the Rental, hiring and real estate services and Health care and social assistance industries were most likely to report expenditure on training (both 36%). The Transport, postal and warehousing and Financial and insurance services industries were the least likely to have expenditure on research and experimental development performed by the business (both 2%).

Government Financial Assistance for Innovation Related Activities

Innovation-active businesses were asked if they had received any financial assistance from Australian government organisations specifically for the purpose of innovation. Those that indicated that they had were asked which broad level of government provided this assistance.

Assistance from government for innovation purposes(a), by employment size, 2010 - 11

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

Businesses which received government financial assistance for the purpose of innovation
1.2
5.3
7.5
9.6
3.7
Level of government from which financial assistance was received(b)
Federal government
*66.8
^74.5
^30.8
^73.1
^62.5
State/territory or local government
**35.8
^45.8
^74.3
^48.0
^51.4

^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
(a) Proportions are of innovation-active businesses which received financial assistance in each output category.
(b) Businesses could identify more than one level of government from which financial assistance for the purpose of innovation was received.

Almost 4% of innovation-active businesses indicated receiving financial assistance from Australian government organisations for the development or introduction of new goods, services, processes or methods during the year ended 30 June 2011. Of these businesses 62% reported that this financial assistance was from the federal government, 51% from state/territory or local government. The proportion of businesses reporting that they received financial assistance from Australian government organisations for innovation increased with each successive employment size range from 1% for businesses with 0-4 persons employed to 10% for businesses with 200 or more persons employed.

It is important for users to note that the population varies considerably between each employment size group. For example, 10% of innovation-active businesses with 200 or more persons employed reported receiving government financial assistance for innovation which represents approximately 400 businesses. While just 1% of innovation-active businesses with 0-4 persons employed reported receiving government financial assistance; this represents approximately 4,500 businesses.

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