Have We Lost Our Innovative Thinkers?
Without innovation, how are businesses able to move forward and gain an advantage against their competitors? With much difficulty, I would imagine!
So what exactly is innovation? Innovation can be a tricky thing to define; the dictionary defines it as “something new or different introduced” while the ABS (Australian Bureau of Statistics) describes it as “the introduction of a new or significantly improved good or service; operational process; organisational/managerial process; or marketing method”.
The definition itself is quite wide so you think that innovation would be easy enough to introduce into a business. Quite surprisingly however, a recent report released by the ABS, shows that less than half of Australia’s 770,000 businesses (42.2 % in fact) are highlighted as engaging in some form of innovative activity.
And while some industries are more innovative than others (administrative and support services; financial and support services; health care and social assistance; professional scientific and technical services; and other industries lead the pack), all sectors remain below the 50% mark of businesses considered to be innovative.
The ABS report states that lack of capital for start-ups, geographic isolation, and low collaboration numbers between key players in the market are factors resulting in the lack of innovation. Surprising, right? We are constantly seeing and hearing about the creation of new businesses and strong market competition yet obviously it is not widely integrated across the board.
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.”
– George Bernard Shaw
Do you consider your business to be innovative? Is there more you can do to make your business more innovative? It’s definitely worth thinking about as, if the statistics are correct, you would be better than 50% of the businesses in your given sector. Food for thought!