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8158.0 - Innovation in Australian Business, 2006-07 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 22/08/2008   
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GLOSSARY

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 or implementation occurring.

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 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 2007. Businesses with a different financial year were asked to report for a 12 month period which ended between 1 October 2006 and 30 September 2007.

Innovation

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

Innovation-active

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

Innovation still in development

The process of development, introduction or implementation 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 or implementation of an innovation.

Innovating business

A business which, in the reference period, introduced any new or significantly improved good or service and/or implemented any new or significantly improved operational 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 or implemented innovation

Introduction or implementation 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 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 marketing method

A significant change for the business in its methods of marketing including changes in product design or packaging, product placement, product promotion or pricing. Marketing innovations are aimed at better addressing customer needs; opening up new markets; or, newly positioning the business' goods 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 or services. This includes significant changes in techniques, delivery methods, equipment and/or software. 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: 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 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.


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