Innovative businesses show greater productivity, study shows
BUSINESSES chasing innovation were more than twice as likely to improve productivity as those that didn't, new government data shows.
The Australian Bureau of Statistics business characteristics figures show productivity improved for a third of businesses that "innovated" in 2011-12.
Innovation was defined as new or improved good or services, operations, marketing or management changes.
But only 14% of businesses that did not actively pursue innovation in 2011-12 had any improvement in their productivity.
ABS Andrew Puljic said those businesses actively pursuing new products or ways of doing business were also more likely to report a rise in the number of new jobs and profits.
The data also showed 18% of all Australian businesses sought debt or equity finance in 2011-12, with the vast majority (88%), getting the finance.