8158.0 - Innovation in Australian Business, 2014-15 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 21/07/2016   
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BENEFITS OF INTRODUCED INNOVATION


Innovative activity is generally undertaken to increase profits, levels of service or business competitiveness. Innovating businesses were asked what benefit, if any, had been derived from the introduction of new or significantly improved goods, services, processes or methods during the year ended 30 June 2015.

Overall, 89% of innovating businesses reported some form of benefit as a result of the introduction of new or significantly improved goods, services, processes or methods. Increased revenue (42%) was the most commonly reported benefit, followed by improved customer service (41%). Almost a quarter (24%) of innovating businesses reported it was too early to measure benefit.

Benefits of introduced innovation, by employment size(a)(b), 2014-15
0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%
Increased revenue
39.7
45.8
39.1
43.3
42.1
Reduction in costs
20.4
26.8
40.1
34.2
25.2
Gained a competitive edge
23.4
29.2
33.3
27.5
26.8
Improved customer service
33.3
47.5
48.8
43.9
40.7
Too early to measure benefit
25.8
22.3
21.9
28.3
24.0
Other benefit
2.3
3.0
4.0
3.9
2.7
Any benefit(s)
84.9
91.6
93.8
95.5
88.6
(a) Proportions are of innovating businesses only (i.e. those who introduced innovation).
(b) Businesses could identify more than one benefit of introduced innovation.


Innovating businesses with 20-199 persons employed reported improved customer service (49%) and reduction in costs (40%) as the most common benefit of introduced innovation.

By industry, reduction in costs as a benefit was highest for innovating businesses in Electricity, gas, water and waste services (36%), while businesses in Administration and support services had the highest proportion of innovating businesses that reported gained a competitive edge (36%). Accommodation and food services recorded the highest proportion of innovating businesses that reported increased revenue as a benefit of innovative activity (51%).

Further data relating to benefits of innovation can be accessed via the Downloads tab.