BUSINESS INNOVATION


The Business Characteristics Survey (BCS) collects key indicators of business use of IT and innovation in Australian business annually and more detailed information for each of these topics is collected in alternating years. The 2013-14 BCS collected detailed information relating to the use of information technology by Australian businesses.

Summary innovation data for 2013-14 were first released in Summary of IT Use and Innovation in Australian Business, 2013-14 (cat. no. 8166.0) in June 2015.

The development or introduction of new or significantly improved goods, services, processes or methods is generally considered to be innovation. Innovation is often seen as a continuous process. Therefore, it can be difficult to measure, and aspects of the process can also be intangible.

The BCS covers four broad types of innovation (goods or services, operational processes, organisational/managerial processes and marketing methods) across three innovation statuses (introduced, still in development and abandoned).

Summary of innovative activity in Australian business, key indicators, by employment size(a), 2013-14
		0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
		%	%	%	%	%
Businesses which introduced any new or significantly improved:
	goods or services	19.3	31.0	34.3	34.7	24.1
	operational processes	13.4	22.3	34.3	44.4	17.9
	organisational/managerial processes	15.6	29.1	39.0	53.2	21.7
	marketing methods	16.0	25.9	30.6	40.2	20.3
	any of the above (i.e. innovating businesses)	34.1	54.1	60.7	73.9	42.5
Businesses with innovative activity which was:
	still in development(b)	19.0	31.7	40.4	53.8	24.7
	abandoned	7.5	10.3	8.3	6.8	8.4
Businesses with any innovative activity (innovation-active businesses)		39.9	59.9	66.7	79.5	48.3
(a) Proportions are of all businesses in each output category.
(b) As at the end of the reference period, 30 June 2014.

Innovation-active businesses

Innovation-active businesses are those that undertook any innovative activity during the 2013-14 reference period. This includes businesses that introduced or abandoned any of the four types of innovation during the period and those that had any of the types of innovation still in development at the end of the period. The proportion of businesses that were innovation-active in 2013-14 was 48%.


Innovating businesses

Innovating businesses are those that introduced any of the four types of innovation during the 2013-14 reference period. More than two in five businesses (42%) reported they had introduced at least one type of innovation during this period.


Innovation still in development

One quarter of all businesses reported some form of innovative activity that was still in development as at 30 June 2014 (25%).


Abandoned innovation

During the year ended 30 June 2014, the proportion of businesses that reported having abandoned at least one type of innovative activity was 8%.

Detailed statistics related to the broad types and status of innovation can be accessed via the Downloads tab.