8158.0 - Innovation in Australian Business, 2003 (Reissue)  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 17/02/2005  Reissue
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Collaboration


Active joint participation with other organisations which involves some sharing of technical or commercial risk. Straight fee-for-service arrangements are deemed not to be collaborative and are therefore excluded.


Expenditure


Refers to the operating and capital expenditure as recorded in the Statement of Financial Performance and Statement of Financial Position for the business.


Financial reference period


Financial year ended 30 June 2003. Businesses with a different financial year were asked to report for a 12 month period which ended between 1 October 2002 and 30 September 2003.


Innovation


The process of developing, introducing and implementing a new or significantly improved good or service or a new or significantly improved process.


Innovating business


A business which, in the three calendar years to 2003, introduced any new or significantly improved good or service and/or implemented any new or significantly improved operational and/or organisational/managerial process.


Intellectual property


Refers to the ownership of ideas and control over the tangible or virtual representation of those ideas.


New good or service


Any good or service or combination of these which is new to the business. Its characteristics or intended uses differ significantly from those previously produced by the business. Examples of new goods include: change of materials in goods; inclusion of environmentally-friendly components; introduction of smart-card; new type of paper for specific printers; development of flexible customer software; introduction of Global Positioning System (GPS); supply of multimedia applications; and cleaning cloths that don't require detergents. Examples of new services include: introduction of an extended warranty; introduction of pick-up service for customers; introduction of sale via Internet (e-commerce); existing services combined in a new form; introduction of electronic clearing systems; new or significantly improved insurance services; introduction of automated voice-response system; and introduction of telephone or internet bill payments system.


Businesses were asked to include significant improvements to existing goods or services, but to exclude: routine upgrades of equipment; renaming or repackaging of existing goods or services; routine customisation of goods or services (e.g. individual tax returns produced for each client but using the same method and tools); and regular seasonal changes where a good or service is only produced at certain times of the year, but is essentially unchanged from the previous year.


New operational process


A significant change for the business in its methods of producing or delivering goods or services. Examples of new operational processes include: digitalisation of printing processes; introduction of computer-assisted/based methods for product development; introduction of digital product labelling; development and introduction of digital distribution channels; reconstruction or reorganisation of sales rooms, if this enables easier shopping for customers; implementation of call-centre solutions; training of skilled labour to offer specially trained consulting services to customers; new or improved software or PC networks; introduction of electronic data interchange; new software tools for supply chain management; and introduction of automated or electronic ticketing system.


Businesses were asked to include significant improvements to existing operational processes, but exclude process changes solely related to compliance with Goods and Services Tax (GST) legislation.


New organisational/managerial process


A significant change in the strategies, structures or routines of a business which aim to improve the performance of the business. Examples of new organisational/managerial processes include: changed corporate directions; introduction of new management techniques; improved business diagnostics or performance measures; significant workplace reorganisation; and significant changes to communication and information networks.


Non-innovating business


A business which, in the three calendar years to 2003, did not introduce any new or significantly improved goods or services and did not implement any new or significantly improved operational and/or organisation/managerial processes.


Non-technological innovation


Non-technological innovation covers all innovations which are excluded from technological innovation. This means it includes all the innovations of firms which do not relate to the introduction of a technologically new or substantially changed good or service or to the use of a technologically new or substantially changed process. The major types of non-technological innovation are likely to be organisational and managerial innovations. For example: the implementations of advanced management techniques such as total quality management; the introduction of significantly changed organisation structures; and the implementation of new or substantially changed corporate strategic orientations.


Percentage of foreign ownership


The percentage of ordinary shares or voting stock of a business held by non-residents of Australia.


Research and experimental development


Comprises creative work carried out systematically to increase the stock of knowledge and its use to devise new applications.


Technological innovation


Technological product and process (TPP) innovations comprise implemented technologically new products and processes and significant technological improvements in products and processes. A TPP innovation has been implemented if it has been introduced on the market (product innovation) or used within a production process (process innovation). TPP innovations involve a series of scientific, technological, organisational, financial and commercial activities.