8158.0 - Innovation in Australian Business, 2003 (Reissue)  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 17/02/2005  Reissue
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TECHNICAL NOTE DATA QUALITY


INTRODUCTION

1 As the estimates in this publication are based on information relating to a sample of businesses rather than a full enumeration, they are subject to sampling variability. That is, they may differ from the estimates that would have been produced if the information had been obtained from all businesses.



QUALITY ASSURANCE OF DATA

2 Inaccuracies in data may occur due to imperfections in reporting by businesses, form design, or in processing by the ABS. Such inaccuracies are referred to as non-sampling error. Every effort is made to reduce non-sampling error by:

  • careful design and testing of questionnaires and data processing systems
  • providing detailed instructions to providers on how to respond to questions
  • detailed checking of reported data to ensure that it is logical, consistent and complete.

3 The data input editing process was supported by the conduct of a post enumeration survey (PES). The PES was conducted in person with data providers in several states and territories, and was used to identify issues with the quality of reported data. Quality issues were then targeted closely during the output editing stage of the survey to assist in minimising survey bias due to non-sampling error.


4 Caution should be exercised when using estimates of expenditure on innovation from this Innovation survey. Many businesses were only able to proved an estimate of expenditure associated with innovation. Negligible amounts recorded against some expense items may be due to the unavailability of information rather than minimal spending.


5 This survey had a lower than designed for response rate of approximately 82%. The design response rate was 92%. The lower response rate was addressed by ensuring non-response was not concentrated in any particular strata and by utilising the most appropriate method of imputation.



RELIABILITY OF ESTIMATES

6 The difference between estimates obtained from a sample of businesses, and the estimates that would have been produced if the information had been obtained from all businesses, is called sampling error. The expected magnitude of the sampling error associated with any estimate can be estimated from the sample results. One measure of sampling error is given by the standard error (SE), which indicates the degree to which an estimate may vary from the value that would have been obtained from a full enumeration (the 'true' figure). There are about two chances in three that a sample estimate differs from the true value by less than one standard error, and about nineteen chances in twenty that the difference will be less than two standard errors.


7 An example of the use of standard error on the total proportion of innovating businesses is as follows. From Table 1.1, the estimated proportion of total businesses innovating was 34.8%. From the Standard Error table in this section, the standard error of this estimate was 1.4%. There would be about two chances in three that a full enumeration would have given a figure in the range 33.4% to 36.2%, and about nineteen chances in twenty that it would be in the ranges 32.0% to 37.6%.


8 Detailed standard errors are available on request.


9 In this publication, indications of sampling variability are measured by relative standard errors (RSEs). The relative standard error is a useful measure in that it provides an immediate indication of the percentage errors likely to have occurred due to sampling, and thus avoids the need to refer also to the size of the estimate. Relative standard errors are shown in the Relative Standard Error table in this section.


10 Relative standard errors can be calculated using the actual standard error and the survey estimate (referred to as x) in the following manner:

      RSE%(x) = (SE(x)/x)*100

11 For example, from Table 1.1 the estimated proportion of total businesses that introduced any new or significantly improved goods or services was 16.6%. From the Standard Error table in this section, the standard error was 1.1%.


12 Applying the above RSE%(x) formula yields:

      RSE%(16.6%) = (1.1%/16.6%)*100
      = 6.6%

13 For the tables in this publication, estimates with RSEs between 10% and 25% are annotated with the symbol '^'. These estimates should be used with caution as they are subject to sampling variability too high for some purposes. Estimates with RSEs between 25% and 50% are annotated with the symbol '*', indicating that the estimates should be used with caution as they are subject to sampling variability too high for most practical purposes. Estimates with an RSE greater than 50% are annotated with the symbol '**', indicating that the sampling variability causes the estimates to be considered too unreliable for general use.


14 It should be noted that RSEs of more than 10% are common when applied to very low proportions, as is the case in this publication.


15 Estimates of RSEs and SEs for the key indicators in this publication are shown in the following tables.

RELATIVE STANDARD ERRORS OF TYPES OF INNOVATION UNDERTAKEN, 2001-2003(a), by selected business characteristics
Businesses which introduced or implemented
Total number of businesses
Proportion of businesses innovating
Number of businesses innovating
Any new or significantly improved goods or services
Any new or significantly improved operational processes
Any new or significantly improved organisational /managerial processes
%
%
%
%
%
%
Employment size
5-19 persons
1.5
5.9
1.8
9.6
7.7
8.5
20-99 persons
3.8
4.8
2.8
8.8
6.9
6.5
100 or more persons
5.3
5.0
4.4
8.2
6.9
7.2
Income size
Less than $100 000
11.0
25.3
3.7
54.2
33.5
30.9
$100 000-less than $1m
4.3
11.3
2.7
16.5
13.6
14.9
$1m-less than $5m
3.6
5.5
2.7
9.9
7.3
7.9
$5m or more
4.8
4.5
3.2
7.9
7.0
6.9
State/territory
New South Wales
1.9
7.7
2.9
13.0
10.7
11.1
Victoria
1.8
8.9
3.2
11.8
10.7
12.1
Queensland
2.0
9.7
3.0
13.4
13.2
13.3
South Australia
2.9
8.9
4.2
13.8
12.2
11.6
Western Australia
2.2
8.9
3.0
12.5
11.2
12.6
Tasmania
2.5
18.7
5.1
26.8
25.9
20.6
Northern Territory
5.7
23.3
6.2
27.7
20.1
32.3
Australian Capital Territory
4.8
19.8
5.8
34.5
25.6
21.6
Region
Capital cities
4.3
7.9
3.3
9.7
11.4
10.2
Other areas
1.8
4.8
1.7
8.9
5.7
7.8
Industry
Mining
2.7
11.1
3.6
21.5
14.9
14.4
Manufacturing
0.8
3.5
1.6
5.0
4.5
5.2
Electricity, gas and water supply
0.4
3.8
1.9
6.0
5.4
5.0
Construction
2.3
12.8
4.0
24.9
16.3
15.3
Wholesale trade
2.3
8.6
3.8
11.9
13.1
13.0
Retail trade
2.7
13.8
4.3
24.6
17.1
17.1
Accommodation, cafes and restaurants
4.0
16.8
4.6
21.4
21.4
20.2
Transport and storage
3.2
10.7
3.9
18.0
14.2
15.9
Communication services
2.6
9.1
5.0
13.2
11.0
12.5
Finance and insurance
6.3
11.5
5.7
16.8
14.3
13.9
Property and business services
2.2
11.6
3.8
19.0
13.8
14.5
Cultural and recreational services
2.3
9.3
3.5
17.6
13.2
12.2
Total
0.9
4.1
1.5
6.8
5.6
5.8
(a) Calendar years.

STANDARD ERRORS OF TYPES OF INNOVATION UNDERTAKEN, 2002-2003(a), by selected business characteristics
Businesses which introduced or implemented
Total number of businesses
Proportion of businesses innovating
Number of businesses innovating
Any new or significantly improved goods or services
Any new or significantly improved operational processes
Any new or significantly improved organisational /managerial processes
No.
%
No.
%
%
%
Employment size
5-19 persons
1,515
1.8
1,873
1.4
1.5
1.5
20-99 persons
1,077
2.2
795
1.8
2.1
2.0
100 or more persons
277
3.0
232
3.1
3.1
2.9
Income size
Less than $100 000
1,012
3.5
343
2.0
3.4
3.0
$100 000-less than $1m
2,224
2.8
1,426
1.8
2.0
1.9
$1m-less than $5m
1,862
2.3
1,430
2.0
2.1
2.1
$5m or more
1,076
2.3
723
2.1
2.4
2.3
State/territory
New South Wales
907
2.8
1,380
2.3
2.5
2.3
Victoria
613
3.1
1,119
2.0
2.4
2.5
Queensland
493
3.0
729
1.9
2.9
2.7
South Australia
253
4.1
368
3.3
3.7
3.5
Western Australia
300
2.9
399
1.7
2.5
2.7
Tasmania
65
4.9
129
2.7
4.5
3.5
Northern Territory
64
6.6
70
3.2
3.1
5.8
Australian Capital Territory
112
5.8
136
3.2
5.6
4.4
Region
Capital cities
1,746
2.8
1,323
1.7
2.5
2.3
Other areas
1,710
1.6
1,638
1.3
1.4
1.5
Industry
Mining
20
3.4
26
2.3
2.7
2.6
Manufacturing
157
1.6
304
1.4
1.3
1.3
Electricity, gas and water supply
1
1.9
4
1.3
1.8
1.7
Construction
289
3.9
499
2.4
3.3
3.4
Wholesale trade
305
3.7
505
3.1
3.3
3.5
Retail trade
802
4.3
1,295
2.5
3.7
3.1
Accommodation, cafes and restaurants
474
4.4
548
2.3
3.8
3.2
Transport and storage
158
3.7
194
2.8
3.7
3.4
Communication services
11
4.6
21
3.9
4.4
3.8
Finance and insurance
240
5.1
219
3.7
3.8
4.4
Property and business services
757
3.7
1,290
3.2
3.0
2.9
Cultural and recreational services
100
3.4
156
3.2
2.7
3.1
Total
1,234
1.4
2,012
1.1
1.3
1.2
(a) Calendar years.