8158.0 - Innovation in Australian Business, 2014-15 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 21/07/2016   
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INNOVATION BY TYPE AND STATUS


GOODS AND/OR SERVICES

Almost one in five businesses reported the introduction of new or significantly improved goods and/or services during the year ended 30 June 2015. The proportion of businesses that introduced new services (14%) was higher than the proportion of businesses that introduced new goods (9%). Almost one in ten businesses had new goods and/or services still in development (9%), while 3% of businesses reported they had abandoned innovative activity related to new goods and/or services.

Goods and/or services innovation, by employment size(a), by status, 2014-15

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved:(b)
goods
6.6
13.2
14.3
13.9
9.3
services
11.5
16.1
19.0
20.0
13.6
goods and/or services
16.0
23.1
29.4
29.8
19.3
Businesses with any activity related to new or significantly improved goods and/or services that was:(b)
still in development(c)
7.7
10.8
14.9
17.3
9.3
abandoned
2.8
3.1
4.7
4.7
3.0

(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2015.


The proportion of businesses with 200 or more persons employed that introduced new or significantly improved goods and/or services (30%) was almost double that of businesses with 0-4 persons employed (16%).

The Wholesale trade (28%) and Manufacturing industries (24%) had the highest proportion of businesses that introduced new goods, while the Arts and recreation services (23%) and Professional, scientific and technical services industries (22%) had the highest proportion of businesses that introduced new services.

The Wholesale trade industry had the highest proportion of businesses with goods and/or services still in development (20%), while the Accommodation and food services industry had the highest proportion of businesses that abandoned innovative activity associated with the development of new goods and/or services (7%).

Further data relating to goods and/or services innovation can be accessed via the Downloads tab.


OPERATIONAL PROCESSES

Overall, 16% of businesses introduced new or significantly improved operational processes during the year ended 30 June 2015. The most common type of operational process innovation reported was supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing (10%). Almost one in ten businesses had operational processes still in development (9%), while 3% of businesses reported they had abandoned innovative activity related to operational processes.

Operational processes innovation, by employment size(a), by status, 2014-15

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved:(b)
methods of manufacturing or producing goods or services
4.2
5.6
10.6
6.9
5.1
logistics, delivery or distribution methods for goods or services
3.2
4.3
7.8
11.2
3.9
supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing
7.3
12.2
20.8
28.8
10.0
other operational processes
0.6
0.9
1.2
1.1
0.7
any operational processes
12.4
18.0
31.1
35.8
15.6
Businesses with any activity related to new or significantly improved operational processes that was:(b)
still in development(c)
6.1
11.4
18.5
25.8
8.8
abandoned
1.9
4.0
3.0
6.9
2.7

(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2015.


The proportion of businesses that introduced new or significantly improved operational processes increased with each successive employment size range. The proportion of businesses with 200 or more persons employed that introduced any operational processes (36%) was triple that of businesses with 0-4 persons employed (12%).

The Manufacturing industry had the highest proportion of businesses with new methods of manufacturing or producing goods or services (20%) introduced. The Transport, postal and warehousing, Electricity, gas, water and waste services and Wholesale trade industries had the highest proportion of businesses that introduced logistics, delivery or distribution methods for goods or services (all 9%). The Health care and social assistance and Rental, hiring and real estate services industries had the highest proportion of businesses with new supporting activities for business operations, such as maintenance systems or processes for purchasing, accounting or computing (both 15%).

The Manufacturing industry had the highest proportion of businesses with operational processes still in development (15%), while the Health care and social assistance industry had the highest proportion of businesses that abandoned innovative activity associated with the development of new operational processes (5%).

Further data relating to operational processes innovation can be accessed via the Downloads tab.


ORGANISATIONAL/MANAGERIAL PROCESSES

Overall, 17% of businesses introduced new or significantly improved organisational/managerial processes during the year ended 30 June 2015. The most commonly introduced organisational/managerial process was knowledge management processes to better use or exchange information, knowledge and skills within the business (10%), followed by new methods of organising work responsibilities and decision making (9%). Overall, 8% of businesses had organisational/managerial processes still in development, while 2% of businesses reported they had abandoned innovative activity related to organisational/managerial processes.

Organisational/managerial processes innovation, by employment size(a), by status, 2014-15

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved:(b)
knowledge management processes to better use or exchange information, knowledge or skills within the business
7.0
12.4
19.3
19.1
9.6
business practices for organising procedures
4.0
9.0
15.7
18.8
6.5
methods of organising work responsibilities and decision making
5.2
14.2
20.7
25.8
9.3
methods of organising external relations with other businesses or public institutions
3.3
4.1
7.0
6.4
3.8
other organisational/managerial processes
0.2
1.0
0.8
1.5
0.5
any organisational/managerial processes
12.2
23.1
34.1
38.8
17.4
Businesses with any activity related to new or significantly improved organisational/managerial processes that was:(b)
still in development(c)
5.3
10.4
15.8
21.6
7.8
abandoned
1.1
2.9
1.5
2.1
1.7

(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2015.


The proportion of businesses that introduced new organisational/managerial processes increased with each successive employment size range, from 12% for businesses with 0-4 persons employed to 39% for businesses with 200 or more persons employed.

The Manufacturing industry had the highest proportion of businesses that introduced new business practices for organising procedures (12%). The Administrative and support services and Wholesale trade industries had the highest proportion of businesses that introduced knowledge management processes to better use or exchange information, knowledge or skills within the business (both 13%).

The Manufacturing industry had the highest proportion of businesses with organisational/managerial processes still in development (14%), as well as abandoned (4%).

Further data relating to organisational/managerial processes innovation can be accessed via the Downloads tab.


MARKETING METHODS

During the year ending 30 June 2015, 16% of businesses introduced at least one type of new or significantly improved marketing method, with new media or techniques for product promotion (12%) the most common type introduced. One in ten businesses had new marketing methods still in development (10%), while 4% of businesses reported having abandoned innovative activity related to new marketing methods.

Marketing methods innovation, by employment size(a), by status, 2014-15

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Businesses that introduced any new or significantly improved:(b)
changes to the aesthetic design or packaging of good or services
2.7
4.4
7.3
8.5
3.6
media or techniques for product promotion
9.3
17.0
18.4
20.1
12.5
methods of product placement or sales channels
1.5
3.5
5.9
4.8
2.5
methods of pricing goods or services
2.2
3.0
5.2
3.7
2.7
other marketing methods
0.7
0.6
1.2
4.9
0.7
any marketing methods
12.6
21.3
27.2
28.5
16.5
Businesses with any activity related to new or significantly improved marketing methods that was:(b)
still in development(c)
8.1
12.6
16.5
17.2
10.2
abandoned
3.7
4.7
2.0
4.0
3.9

(a) Proportions are of all businesses in each output category.
(b) Businesses may be counted in more than one category.
(c) As at the end of the reference period 30 June 2015.


The proportion of businesses with 200 or more persons employed that introduced any marketing methods (28%) was more than double that of businesses with 0-4 persons employed (13%).

The Accommodation and food services industry had the highest proportion of businesses that introduced any new or significantly improved marketing methods (26%), while the Transport, postal and warehousing industry had the lowest proportion of businesses (5%). The Wholesale trade industry had the highest proportion of businesses that introduced new methods of product placement or sales channels (6%), while Wholesale trade and Accommodation and food services had the highest proportion of businesses that introduced new methods of pricing goods and services (both 5%). The Accommodation and food services industry had the highest proportion of businesses that introduced significant changes to the aesthetic design or packaging of a good or service (9%) and new media or techniques for product promotion (20%).

The Wholesale trade industry had the highest proportion of businesses with marketing methods still in development (18%), while the Accommodation and food services industry had the highest proportion of businesses that abandoned innovative activity associated with the development of new marketing methods (7%).

Further data relating to marketing methods innovation can be accessed via the Downloads tab.