A survey of businesses found just 46% reported innovation activity in 2009, the same rate as in a survey carried out in 2007.The innovation rate in the Statistics New Zealand (SNZ) report was defined as the proportion of businesses that undertook any acti
A survey of businesses found just 46% reported innovation activity in 2009, the same rate as in a survey carried out in 2007.
The innovation rate in the Statistics New Zealand (SNZ) report was defined as the proportion of businesses that undertook any activity in the past two financial years that resulted in the development or introduction of new or significant goods or services, operational processes, organisational or managerial processes, or marketing methods.
Innovation was important as it encouraged growth, knowledge transfer, and entrepreneurship, SNZ said.
Many of the results in the latest survey were similar to those in 2007, suggesting the overall patterns of innovation activities had not changed.
In the 2009 survey the information media and telecommunication services industry reported the highest rate of innovation, at 60%.
Industries with rates of more than 50% were manufacturing; wholesale trade; electricity, gas, water and waste services; financial and insurance services; administrative and support services; and professional, scientific, and technical services.
This country had a slightly lower innovation rate than Australia, with -- for the same business size and industry coverage -- this country having 48% and Australia 52%.
Existing staff were reported as being important sources of information to innovating business 74% of the time, with customers 61%, and new staff 54%, the report said.
Fewer than 10% of businesses rated either universities or polytechnics, or Crown Research Institutes, other research institutes, or research associations as important sources of information.
Increasing revenue was the most common reason for carrying out innovations, being a factor for 90% of innovating businesses, while increased productivity was a factor for 78%, increasing responsiveness of customers was 73%, reducing costs 72%, and increasing market share 72%.
Innovating firms reported an increase in sales in 47% of cases compared to 35% for non-innovators, productivity was higher for 39% of innovators and 23% of non-innovators, while 34% of innovators reported a rise in profitability compared to 29% of non-innovators.
Businesses in this country spent almost $2.5 billion on product development and related activities in 2009, equating to 0.5% of business' total spending, with manufacturing spending $773m, professional, scientific and technical services $414m, wholesale trade $332m, and retail trade $307m, the report said.
Industries with the highest average spend per business were telecommunications at $830,000, some machinery and equipment at $691,000, finance $666,000, and insurance $603,000.
The survey found that 45% of businesses which invested in product development or related activities spent less than $1000 per employee, while the overall average spend per employee was $2115.
The 4% of businesses in the survey with 100 or more employees accounted for 50% of all employees and 47% of all product development expenditure.
Only 8% of all businesses did research and development, although for those with 100 or more employees the amount was 20%.
Patents, as a form of protection for intellectual activity, were used by 11% of innovators and 4% of non-innovators, with this country ranked 21st in the OECD for its patent rate at 11.8 per million population.
Costs to develop or introduce innovation hampered 19% of businesses' ability to innovate to a high degree and 21% to a medium degree, while a lack of management resources hampered 15% to a high degree and 20% to a medium degree.
