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1301.0 - Year Book Australia, 2007  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2007   
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INNOVATION

The ABS conducted a survey of businesses in the private industry to gauge innovation undertaken during the period January 2001 to December 2003. For the purposes of the survey, innovation is defined as the process of introducing new or significantly improved goods or services and/or implementing new or significantly improved processes. New goods or services or processes may involve the development of new technology, an adaptation of existing technology to a new use, or may be non-technological in nature (e.g. organisational and managerial change). These categories are defined as:

  • a new good or service means any new good or service or combination of these which is new to a business; its characteristics or intended uses differ significantly from those previously produced
  • a new operational process means a significant change for a business in its methods of producing or delivering goods or services
  • a new organisational/managerial process means a significant change to the strategies, structures or routines of the business which aim to improve performance.

During the three years ended December 2003, innovation was undertaken by 35% of businesses in scope of the survey. Of those businesses innovating, a higher proportion (23%) implemented new or significantly improved operational processes than introduced new or significantly improved goods or services (17%) (table 25.1).

25.1 SUMMARY OF INNOVATION, Selected business characteristics(a) - 2001-2003

Businesses
Proportion of businesses which introduced/implemented new or significantly improved


Indicator
As at December 2003
Innovating(b)
Goods or
services(b)
Operational processes(b)
Organisational/
managerial
processes(b)
no.
no.
%
%
%
%

Employment size
5-19 persons
102,009
31,036
30.4
14.3
19.8
17.7
20-99 persons
28,583
13,061
45.7
20.6
29.9
31.3
100 or more persons
5,244
3,186
60.8
38.4
44.8
39.5
Income size
Less than $100,000
9,160
^1,251
13.7
**3.8
*10.1
*9.7
$100,000 - less than $1m
51,902
12,749
^24.6
^10.6
^15.1
^12.8
$1m - less than $5m
52,257
21,686
41.5
20.5
28.3
27.1
$5m or more
22,517
11,596
51.5
26.3
33.7
32.9
States and territories
New South Wales
48,279
17,586
36.4
^17.8
^23.0
^20.9
Victoria
34,807
12,070
34.7
^17.1
^22.8
^21.1
Queensland
24,519
7,519
30.7
^14.0
^21.7
^20.6
South Australia
8,802
4,038
45.9
^23.8
^30.2
^29.8
Western Australia
13,416
4,399
32.8
^13.6
^22.2
^21.3
Tasmania
2,553
676
^26.5
*10.1
*17.5
^17.0
Northern Territory
1,121
315
^28.1
*11.5
^15.4
*17.9
Australian Capital Territory
2,339
680
^29.0
*9.2
*22.1
^20.6
Region
Capital cities
40,409
33,540
35.1
17.6
^21.9
^22.2
Other areas
95,426
13,742
34.0
14.1
25.3
19.4
Industry
Mining
722
223
^30.9
^10.6
^18.5
^17.9
Manufacturing
18,940
8,621
45.5
27.1
29.7
24.2
Electricity, gas and water supply
191
97
50.8
21.2
33.5
34.9
Construction
12,554
3,860
^30.7
^9.8
^20.0
^22.4
Wholesale trade
13,231
5,670
42.9
^26.1
^25.2
^27.1
Retail trade
30,163
9,471
^31.4
^10.2
^21.6
^18.4
Accommodation, cafes and restaurants
11,980
3,175
^26.5
^10.6
^17.8
^16.1
Transport and storage
5,008
1,748
34.9
^15.4
^25.8
^21.3
Communication services
428
219
^51.1
^29.2
^40.0
^30.4
Finance and insurance
3,821
1,694
^44.3
^22.2
^26.4
^31.7
Property and business services
34,368
10,880
^31.7
^16.6
^21.6
^20.1
Cultural and recreational services
4,429
1,625
36.7
^17.9
^20.2
^25.4
Total
135,836
47,283
34.8
16.6
22.9
21.4

(a) The scope of the survey excluded all businesses employing less than five employees and those classified to the following Industry Divisions of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 edition: Agriculture, forestry and fishing; Government administration and defence; Education; Health and community services; and Personal and other services.
(b) Proportions are of businesses reporting innovation in each category.
Source: Innovation in Australian Business, 2003 (Re-issue 8158.0).


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