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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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APPENDIX 2 CHANGES TO INDUSTRY CLASSIFICATION


IMPACT OF CHANGES TO INDUSTRY CLASSIFICATION

1 One of the criteria used in defining the scope of businesses included in the Business Characteristics Survey (BCS) is industry. The industry classification used is the Australian and New Zealand Standard Industrial Classification (ANZSIC). For the 2006-07 BCS, the 2006 edition of ANZSIC was used to define scope (and consequently classify outputs). Therefore, the estimates in the body of this release and in the associated data cubes are based on that edition. The previous iteration of this survey (2005-06 BCS) used the 1993 edition of ANZSIC. For more detail about scope on an ANZSIC 2006 basis, please refer to Explanatory Notes 10 and 11.

2 ANZSIC 2006 was developed to provide a more contemporary industrial classification system taking into account issues such as changes in the structure and composition of the economy, changing user demands and compatibility with major international classification standards. For more information about the new classification and comparability/concordance between editions, please refer to Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition (cat. no. 1292.0).

3 The scope of the BCS when conducted on the ANZSIC 1993 basis was all business entities in the Australian economy, except for:

      ANZSIC93 Division A Agriculture, forestry and fishing
      ANZSIC93 Division M Government administration and defence
      ANZSIC93 Division N Education
      ANZSIC93 Subdivision 97 Private households employing staff
      ANZSIC93 Class 7340 Financial asset investors
      ANZSIC93 Class 7412 Superannuation funds
      ANZSIC93 Class 9610 Religious organisations

4 Generally, the 2005-06 and 2006-07 iterations of the BCS included the same range of industries in their scope. However, as part of moving to ANZSIC06, some minor changes to the scope of the 2006-07 BCS were also made to exclude businesses which didn't operate in the market place (for example, interest groups). These changes were predominantly in the ANZSIC93 Divisions P (Cultural and recreational services) and Q (Personal and other services). These changes will apply in future cycles of the BCS.


Comparability with output released from the 2005-06 BCS

5 While the impact on overall Australian level estimates has been minimal, they are sufficiently different for data not to be directly comparable. For example, the estimated number of businesses in scope of the 2006-07 BCS on an ANZSIC93 based scope is 718,000. By comparison, the estimated number of businesses in scope of the 2006-07 BCS on an ANZSIC06 based scope is 708,000. Similarly, the proportion of innovation-active businesses based on an ANZSIC93 scope is 37.0%, whereas, the proportion of innovation-active businesses based on an ANZSIC06 scope is 36.8%.

6 Core indicators of innovation for 2005-06 were released in Summary of IT Use and Innovation in Australian Business, 2005-06 (cat. no. 8166.0) and Selected Characteristics of Australian Business, 2005-06 (cat. no. 8167.0). For those readers who may have used innovation core indicators included in these releases, the following table is provided to assist in making a comparison between the 2005-06 and 2006-07 iterations of the BCS. The table shows data from the 2006-07 BCS on an ANZSIC93 based scope.

Summary of innovative activity: ANZSIC 1993 basis(a), by employment size, by industry - 2006-07

Businesses with innovative activity which was:
Estimated number of businesses as at 30 June 2007(b)
Businesses with introduced or implemented innovation (innovating businesses)
still in development(c)
abandoned
Businesses with any innovative activity (innovation-active businesses)
'000
%
%
%
%

Employment size
0-4 persons
451
26.3
13.7
4.9
31.0
5-19 persons
209
40.5
21.6
6.8
44.5
20-199 persons
55
50.3
29.1
7.4
55.7
200 or more persons
3
60.1
35.7
7.5
65.5
Industry (ANZSIC 1993)
Mining
*3
^29.4
*17.6
5.1
^35.1
Manufacturing
57
46.1
26.0
6.7
51.4
Electricity, gas and water supply
1
^53.0
36.0
np
^59.0
Construction
117
21.4
10.6
3.5
26.0
Wholesale trade
46
43.4
20.5
8.2
46.8
Retail trade
116
31.8
16.4
5.3
35.8
Accommodation, cafes and restaurants
39
30.0
16.7
9.8
34.3
Transport and storage
35
27.6
10.9
3.4
30.9
Communication services
^9
^29.0
14.3
3.3
^32.4
Finance and insurance services
22
43.8
21.3
6.8
47.8
Property and business services
162
33.9
21.4
7.0
39.2
Health and community services
55
27.7
16.3
2.7
33.5
Cultural and recreational services
20
35.3
17.6
8.3
39.2
Personal and other services
35
35.3
11.1
3.7
38.4
Total
718
32.4
17.3
5.7
37.0

^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
* estimate has a relative standard error of 25% to 50% and should be used with caution
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Proportions are of all business in each output category.
(b) The estimated number of businesses is provided for contextual information only. For more information about sources of information for counts of businesses, please refer to Explanatory Notes 30 and 31.
(c) As at the end of the reference period.



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