Innovation: key findings
The onus is on business leaders to empower their employees to generate ideas that help drive the organisation forward.
Out of the four areas we identified as having the biggest effect on productivity, only 15% of respondents cite innovation as a key influence.
Results reveal the majority of respondents understand the value of innovation on productivity levels, however many identify challenges and obstacles in achieving this within their organisation.
Recognising the value of innovation
Results illustrate the majority of respondents understand the value of innovation on productivity levels:
- Fifty—one per cent say that further innovation would increase productivity
- Forty-nine per cent acknowledge a clear and compelling case for innovation
- Fifty-one per cent acknowledge they have the opportunity to suggest new ideas
Challenges and obstacles in achieving innovation
Innovation: key findings
However many respondents identify challenges and obstacles to driving innovation within their organisation:
- Forty-four per cent did not agree their organisation gives innovation the right focus and attention
- Fifty-nine per cent did not agree innovation was adequately recognised and rewarded
- Forty-eight per cent did not agree good ideas were implemented
Stronger competition, higher propensity to innovate
A recent study by the ABS analysed the economic theory behind market competition and innovation. The results show that organisations within markets with high competition levels had a higher propensity to innovate2.
The Pulse also found this to be true, with organisations from competitive markets such as the financial and insurance; and professional, scientific and technical sectors being more willing to take risks and try new things, while less competitive markets such as the public; and health care and social assistance sectors are dramatically less inclined to embrace innovation.
In saying that, respondents across the board are unanimous in recognising further innovation would increase productivity – so regardless of the sector, in our view, the onus is on business leaders to empower their employees to generate ideas that help drive the organisation forward.
2 Australian Bureau of Statistics, Competitive markets and Innovation levels, August 2011, www.abs.gov.au
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