BENEFITS OF INTRODUCED INNOVATION
Innovative activity is generally undertaken to increase profits, levels of service or business competitiveness. 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 ended 30 June 2015.
Overall, 89% of innovating businesses reported some form of benefit as a result of the introduction of new or significantly improved goods, services, processes or methods. Increased revenue (42%) was the most commonly reported benefit, followed by improved customer service (41%). Almost a quarter (24%) of innovating businesses reported it was too early to measure benefit.
Benefits of introduced innovation, by employment size(a)(b), 2014-15
200 or more persons
|Increased revenue |
|Reduction in costs |
|Gained a competitive edge |
|Improved customer service |
|Too early to measure benefit |
|Other benefit |
|Any benefit(s) |
|(a) Proportions are of innovating businesses only (i.e. those who introduced innovation). |
|(b) Businesses could identify more than one benefit of introduced innovation. |
Innovating businesses with 20-199 persons employed reported improved customer service
(49%) and reduction in costs
(40%) as the most common benefit of introduced innovation.
By industry, reduction in costs
as a benefit was highest for innovating businesses in Electricity, gas, water and waste services (36%), while businesses in Administration and support services had the highest proportion of innovating businesses that reported gained a competitive edge
(36%). Accommodation and food services recorded the highest proportion of innovating businesses that reported increased revenue
as a benefit of innovative activity (51%).
Further data relating to benefits of innovation can be accessed via the Downloads