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
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) |
|No benefit |
|(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%).
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