8158.0 - Innovation in Australian Business, 2008-09 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 26/08/2010   
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Abandoned innovative activity

Activity related to the development and/or introduction of an innovation which was abandoned during the reference period, i.e. work on innovation which ceased without introduction occurring.


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.


Refers to the operating expenses 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 2009. Businesses with a different financial year were asked to report for a 12 month period which ended between 1 October 2008 and 30 September 2009.


An innovation is the introduction of a new or significantly improved good or service; operational process; organisational/managerial process; or marketing method.


A businesses which, in the reference period, undertook any innovative activity irrespective of whether that innovation has been introduced, not yet completed or abandoned.

Innovation still in development

The process of development or introduction of an innovation which was ongoing but this work was still in progress at the end of the reference period.

Innovative activity

Innovative activity includes any work that was intended to or did result in the introduction of an innovation.

Innovating business

A business which, in the reference period, introduced any new or significantly improved good or service and/or operational process and/or organisational/managerial process and/or marketing method.

Intellectual property

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

Introduced innovation

Introduction of an innovation during the reference period (although the innovation does not need to have been commercially successful).

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. This includes significant improvements in technical specifications, components and materials; incorporated software; user friendliness; or, other functional characteristics.
Businesses were asked to include significant improvements to existing goods and/or services, but to exclude: routine upgrades of equipment; renaming or repackaging of existing goods and/or services; routine customisation of goods and/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 marketing method

A significant change for the business in its methods of marketing including changes in product design or packaging, product placement, product promotion, product pricing, or sales method. Marketing innovations are aimed at better addressing customer needs; opening up new markets; or, newly positioning the business' goods and/or services on the market, with the objective of increasing the business' sales.

New operational process

A significant change for the business in its methods of producing or delivering goods and/or services. This includes significant changes in methods of manufacturing, logistics or distribution methods, and supporting activities. Businesses were asked to include significant improvements to existing operational processes.

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. These include: knowledge management processes; new business practices; new methods of organising work responsibilities and decision making; and new methods of organising external relations with other businesses or public institutions.

Non-innovating business

A business which, in the reference period, did not undertake any innovative activity.

Research and Experimental Development

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