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Innovation Innovation-active Businesses

An innovation-active business is one that has undertaken any innovative activity irrespective of whether the innovation was introduced, still in development or abandoned.

Firms that collaborate on innovation are significantly more likely to report productivity and profitability growth, especially if it is with research organisation partners. They are also significantly more likely to introduce more novel innovations. See the latest Australian Innovation System Report for further details.

Australian data on innovation-active businesses is captured by the ABS through the Business Characteristics Survey (BCS). Innovation-active businesses are asked: “During the [reference] year, from where did this business source ideas and information for the development or introduction of new goods, services, processes or methods?” Businesses are then asked to tick a range of market (e.g., customers and suppliers) and institution sources (e.g., universities).

OECD country data is sourced via the Community Innovation Survey (CIS). Businesses are asked to rate the importance of a variety of sources to their business’ innovation activities. Because the CIS ratings are qualitative and subjective, the two international comparison figures may be subject to risks of bias and misinterpretation. OECD+ includes all countries in the OECD, as well as China, Taiwan and Singapore.

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