Survey recognises SA business innovation

Strong correlation with export success SOUTH AFRICAN businesses are least as innovative as those in a number of major economies around the world, according to the South African Innovation Survey 2005, which was released by the Human Sciences Research Council last week. Nearly 52% of South African enterprises reported technological innovation activities in 2004, comprising both product (goods and services) and process innovations. A further 11% of companies recorded marketing or organisational innovations. “South African levels of innovation compare favourably with other countries such as Sweden, the United Kingdom and Portugal,” say the authors. Companies spent some R27.8 billion on innovation activities in 2004. This represents about 2.4% of the total turnover of all surveyed enterprises in both the industrial and service sectors. There is a strong correlation between innovation and success in export markets. About 67% of non-innovative enterprises sold goods and services in only some provinces of South Africa compared to 54% of innovative enterprises.