The latest report into Australia's national innovation system has confirmed the role of innovation in driving productivity, indicating innovative firms of all sizes are almost twice as likely to report an increase in productivity compared those that do not innovate.
The Australian Innovation System Report 2012 revealed that compared with firms that do not innovate, innovative Australian firms are also:
• 42 per cent more likely to increase profitability;
• three times more likely to export;
• four times more likely to increase the range of goods or services offered;
• more than twice as likely to create new jobs; and
• more than three times more likely to increase training opportunities for their employees.
The report showed improvements in the national innovation system against the Australian Government's targets, particularly in the areas of research and skills.
The Australian Government continues to invest strongly in national research, with government gross expenditure on R&D rising to 0.77 per cent of GDP, the seventh highest in the OECD.
Total investment in science, research and innovation was $8.5 billion in 2010-11, not including the Government's significantly larger investments in business advisory services, skills, infrastructure and the regulatory environment that underpin innovation.
The report can be found at: http://www.innovation.gov.au/aisreport
11 December 2012