This chapter details innovation rates for New Zealand businesses over the last two financial years ending 2009. Almost half of all New Zealand businesses innovated over this period. Most innovation results in 2009 were similar to those collected in 2007.
Please view detailed tables 1–3 (in chapter 17 of the pdf or in the available files section online) along with this chapter.
Innovation rate in New Zealand
Forty-six percent of New Zealand businesses reported innovation activity in 2009 – the same rate as in 2007. The innovation rate has remained at similar levels since the information was first collected in 2005, as have the levels of some general business activities such as exports, expansion, and tourism sales.
The innovation rate is the proportion of businesses that undertook any activity during the last two financial years that resulted in the development or introduction of new or significantly improved:
- goods or services (products)
- operational processes
- organisational or managerial processes
- marketing methods.
Goods or services and marketing methods are usually the most visible forms of innovation. These types of innovation can result in changes in income and sales for a business. Operational, organisational, or managerial process innovations are not always so visible to customers, as these innovations involve changes in the way the company operates. In other words, some innovations focus on external aspects of the business and some focus on internal aspects.
The type of innovation a business performs may depend on the type of industry they are in. For example, a business in the manufacturing industry is likely to innovate in the goods or services area, as it designs and creates goods. However, a business in the accommodation and food services industry is likely to undertake marketing innovation, as their business relies on customers knowing about the business and its services.
The rate of innovation can be split into two distinct categories:
-
implemented innovations – where the innovation has been introduced
-
ongoing or abandoned innovations – where the innovative activity was still in progress or had been abandoned over the two-year period.
Most innovating businesses had implemented innovations in the last two financial years, as illustrated in table 2.01.
Table 2.01
Innovation in New Zealand
Last two financial years at August 2007 and 2009 |
| |
Percentage of all businesses(1) |
| 2007 |
2009 |
| Innovators(2) |
|
|
| With implemented innovations |
41 |
41 |
| With ongoing or abandoned innovation activity |
5 |
5 |
| Total innovators |
46 |
46 |
| Non-innovators |
54 |
54 |
1. For more information on the businesses included, see chapter 14. 2. If a business has implemented an innovation, it is included under the 'Implemented' category, even if it has ongoing or abandoned innovations. |
Innovation rate by business size
Results of the Business Operations Survey 2009, presented in figure 2.01, show that the innovation rate increases with business size: from 43 percent for businesses with 6–19 employees to 64 percent for business with 100+ employees.
Figure 2.01
Innovation rate by industry
Figure 2.02 shows the innovation rate for each industry and the overall innovation rate. The information media and telecommunication services industry reported the highest rate of innovation, at 60 percent. The following industries had rates of more than 50 percent:
- manufacturing
- wholesale trade
- electricity, gas, water, and waste services
- financial and insurance services
- administrative and support services
- professional, scientific, and technical services.
Figure 2.02
Innovation rates for the sub-industries of the manufacturing industry are illustrated in figure 2.03. The manufacturing industry is of interest as it had the largest number of businesses taking part in the Business Operations Survey. The innovation rates for the manufacturing sub-industries ranged from 44 percent to 75 percent.
Figure 2.03
