INNOVATION IN AUSTRALIAN BUSINESS

Summary of innovative activity in Australian business, by employment size(a) - 2006-07
			0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
Estimated number of businesses(b)		'000	443	207	55	3	708
Businesses with introduced or implemented innovation (innovating businesses)		%	26.4	40.9	50.8	60.7	32.7
Businesses with innovative activity which was:
	still in development	%	13.8	21.8	29.2	36.6	17.5
	abandoned	%	5.0	7.1	7.2	7.7	5.8
Businesses with any innovative activity (innovation-active businesses)		%	30.9	44.6	56.3	66.2	37.1
(a) Proportions are of all businesses in each employment size category.
(b) Business counts are provided for contextual information only, please refer to Explanatory Notes 27 and 28.

Innovation-active businesses

The proportion of businesses which were innovation-active (i.e. those which undertook any innovative activity) during the year ended 30 June 2007 was 37%. The proportion of businesses that were innovation-active was greater for each successive employment size range, from 31% for businesses with 0-4 persons employed to more than double this proportion for businesses with 200 or more persons employed (66%).


Innovating businesses

The proportion of innovating businesses (i.e. those which introduced or implemented any innovation) during the year ended 30 June 2007 was 33%. The proportion of innovating businesses increased with each successive employment size range, from 26% for businesses with 0-4 persons employed to 61% for businesses with 200 or more persons employed.


Innovation still in development

The proportion of businesses which had an innovation still in development (i.e. those with innovation that was still under development but introduction was yet to occur) as at the end of June 2007 was 18%. The proportion of businesses with innovation still in development increased with employment size, with the highest proportion (37%) being for businesses with 200 or more persons employed.


Abandoned innovation

The proportion of businesses that abandoned at least one innovative activity (i.e. those who ceased development of an innovation prior to completion or introduction) during the year ended 30 June 2007 was 6%. The proportion of businesses that abandoned at least one innovative activity was highest for businesses with 200 or more persons employed at 8% although there was little variation across employment sizes.

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