Innovation Index of Australian Industry - launched today

Tuesday 1 May 2007

IBM-Melbourne Institute Innovation Index is the first inter-industry, multi-indicator study to measure the rate of innovative activity in Australia.

IBM Australia and the University of Melbourne's Melbourne Institute of Applied Economic and Social Research, today announced the launch of the IBM-Melbourne Institute 'Innovation Index of Australian Industry’. This inaugural study uses rigorous analysis of key economic data to provide a measurable rating of Australia’s innovation activity by industry since 1990.

The ‘Innovation Index of Australian Industry’ was conceived by IBM Australia and prepared by researchers at the Melbourne Institute to fill a gap in current innovation research. It is the first study to reflect the complex nature of innovation via an inter-industry, multi-indicator analysis approach.

Although innovation is widely accepted as a key driver of economic growth and productivity, there has not been a published study to date in Australia that measures the many different aspects in which local industry innovates in their provision of products and services. The IBM-Melbourne Institute ‘Innovation Index of Australian Industry’ is the first study to address the many contributors to industry innovation with the analysis of six key data groups, comprising of: research & development intensity; patent intensity; trade mark intensity; design intensity; organizational/ managerial transformation; and productivity.

The ‘Innovation Index of Australian Industry’ is unique in that it captures innovation trends across thirteen categories of Australian industry – as defined by ANZSIC - over a period of fifteen years since 1990. The Innovation Index tracks the evolving innovation performance of the Australian economy to provide business leaders, analysts and policy makers with a rigorous and insightful new measure to assess industry and national economic performance.

“This Innovation Index embodies IBM’s commitment and investment to innovation and the prosperity of the Australian economy in a globally competitive market,” said Glen Boreham, CEO IBM Australia and New Zealand. “There is no doubt that Australia’s industry leaders are embracing innovation to drive growth. However, according to the results of the Innovation Index there is the potential for much more to be done. Our hope with this Innovation Index is that by empowering local industry leaders with the necessary information we can, together, have a more informed debate and build Australia’s global economic future on a path of successful and competitive innovation.”

Dr Paul Jensen, Senior Research Fellow, Melbourne Institute, comments: “Innovation is one of those concepts that everyone – from economists to business strategists, and politicians to policymakers – embraces with vigour since it is well-known that innovation is critical for productivity growth and economic prosperity. However, it is a very difficult concept to measure. The Innovation Index tackles this issue head-on using a rigorous and transparent methodology and mix of subjective and objective data. The result is an impressive Index of the rate of change of innovative activity across all Australian industries over a 16 year period”.

Key Observations:
The IBM-Melbourne Institute ‘Innovation Index of Australian Industry” defines innovation as the introduction of new and improved ways of enhancing business productivity. The Innovation Index records this activity in relation to goods & services; technical operations; and organisational, managerial and marketing functions, encompassing activity that is both ‘new to the world’ and ‘new to the organisation’.

Some of the main observations to be drawn from the Innovation Index are available online at www.melbourneinstitute.com.

The aim of IBM and the Melbourne Institute of Applied Economic and Social Research is to publish the ‘Innovation Index of Australian Industry’ in order to allow innovation and economy watchers to reflect on changes over time and to compare industries.

IBM – Melbourne Institute Innovation Index
For more information about the IBM - Melbourne Institute Innovation Index of Australian Industry, and to download a full analysis of the results, visit http://www.ibm.com/au/innovationindex/

For more information contact:
Dr Paul Jensen
Senior Research Fellow
P: 03 8344 2117
E: pjensen@unimelb.edu.au

Media Contact
Laura A'Bell
Communications and Publicity Manager
Phone : 03 8344 2154
Fax : 03 8344 2111
Email : labell@unimelb.edu.au
Web : www.melbourneinstitute.com