8158.0 - Innovation in Australian Business, 2012-13 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 21/08/2014   
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BENEFITS OF INTRODUCED INNOVATION


Innovative activity is generally undertaken to increase profits, levels of service or business competitiveness. Businesses that introduced an innovation (i.e. 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 ending 30 June 2013. Businesses could identify more than one benefit and a ranking of importance was not required.

Results show nine in ten innovating businesses benefitted as a result of the introduction of new or significantly improved goods, services, processes or methods.

Benefits of introduced innovation(a)(b), by employment size, 2012-13

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Increased revenue
37.2
40.4
48.2
42.2
39.9
Reduction in costs
14.8
20.4
33.0
38.7
19.5
Gained a competitive edge
23.1
32.0
37.8
33.3
28.5
Improved customer service
39.0
46.6
50.4
46.3
43.5
Too early to measure benefit
30.9
29.4
21.4
28.1
29.1
Other benefit
4.2
3.8
1.8
2.6
3.8
Any benefit(s)
86.6
91.8
95.9
96.8
89.9
No benefit
13.4
8.2
4.1
3.2
10.1

(a) Proportions are of innovating businesses only in each output category.
(b) Businesses could identify more than one benefit of introduced innovation.


Businesses with 20-199 persons employed were the most likely to have had increased revenue (48%) and improved customer service (50%) as a result of introduced innovation. Businesses with 200 or more persons employed were more than twice as likely as businesses with 0-4 persons employed to have had a reduction in cost as a benefit (39% and 15% respectively), while businesses in this smallest employment size range were more likely than any other businesses to have had no benefit from introduced innovation (13%).

Reduction in costs was most likely to be experienced by businesses in the Manufacturing and the Agriculture, forestry and fishing industries (both 28%), while businesses in the Information, media and telecommunications industry were most likely to have gained a competitive edge from introduced innovation (34%). Introducing innovation resulted in improved customer service for almost two thirds of innovating businesses in the Health care and social assistance industry (63%).