NI Innovation Gets Boost

It has been revealed that some 57% of Northern Ireland businesses were positively engaged in some form of business innovation activity during the period 2004-2006.

That was the finding from the Northern Ireland element of the UK Innovation Survey, 2007.

The figure includes those businesses that introduced new products (20% of NI businesses), new processes (11%) or who reported innovation related expenditure (56%).

The results also show that the innovation rate for NI businesses was similar to that reported during the previous period (56% in 2002-2004).

Northern Ireland businesses were, however, less likely to be 'innovation-active' than those in the UK as a whole, where the activity rate was 64% in 2004-2006.

A similar gap was evident for Small and Medium Enterprises (10-249 employees) of whom 57% were innovative in NI, compared to 63% in the UK.

In contrast, large enterprises (250 or more employees) in Northern Ireland (73%) were as likely to be engaged in introducing innovations as those in the UK (74%).

As is the case in the UK, there is considerable variation in innovation activity across NI industry sectors. A larger proportion of enterprises in the production and construction sector (63%) were innovative compared to those in the distribution and services sector (55%). However, some improvement in NI service sector performance was noted compared to 2002-04, where the innovation activity rate increased from 52% to 55% in 2004-06.

Comparisons between the 2007 and earlier innovation surveys are limited by differences in methodology and the type of business sectors covered. However, when similar sectors are compared (i.e. excluding repair of motor vehicles, retail and hotels and restaurants), the proportion of firms in Northern Ireland engaged in innovation activity has increased from 46% in 1998-2000, to 63% in 2002-2004 and to 64% in 2004-2006.

Commenting on the figures, NI Economy Minister Arlene Foster said: "It is encouraging to see that over half of Northern Ireland's firms are actively innovating. Such firms clearly recognise that, in the new knowledge-based global economy, innovation is critical for sustained long-term business growth.

"There is the potential for all businesses to benefit by continuously seeking to improve their products or processes and by adopting or developing new technologies. It is important that the private sector grasps this challenge and ensures that innovation activity is embedded in our business culture. This is particularly crucial for small and medium sized enterprises."

The Minister continued: "Encouraging the spread of innovation is an integral part of the Programme for Government and Invest NI offers a number of programmes which can assist in this process."

(BMcC)