Bigger companies are often the most innovative

Nearly one in three companies with more than 10 employees reported in 1997 that they had introduced new or significantly changed products or processes in the past three years. Large companies, which often have a wider range of products, are far more likely than smaller firms to undertake such innovations. In manufacturing, one in four of the smallest companies reported an innovation, while among the largest companies this was the case for more than eight of 10 firms.

The innovation rate in manufacturing is relatively high. Here, 39 per cent of the companies are innovative, against 25 per cent of the companies in the services sector. Service industry companies can, however, be divided into high and low-innovation groups. Highly innovative industries include telecommunications, financial services and data processing, with an innovation rate of 50 per cent. In traditional services such as trade and transport the innovation rate was about 15 percent. The most innovative industries are, however, in manufacturing.

Chemical and chemical products manufacturing has an innovation rate of all of 70 per cent, while in radio and communications equipment manufacturing it is 67 per cent.

Most widespread in large companies

Innovation is the most widespread in large companies. This is because large companies are often involved in several products or production lines at the same time, and therefore have a greater probability of becoming involved in an innovation process. This is most evident in manufacturing. Here, the innovation rate is 26 per cent among the smallest companies and rises steadily to 84 per cent among the largest. The situation appears to be different in the service sector. Even companies with up to 500 employees do not have more than 35 per cent innovation. The rate jumps to 69 per cent among companies with 500 or more employees.

New Statistics
Innovation in Norwegian enterprises. Main figures, 1997.
The statistics are coordinated with other European Economic Area countries and the previous survey was conducted in 1993. For more information, contact: Kjetil.Kragset@ssb.no, tel. +47 21 09 47 59.

Weekly Bulletin issue no. 42, 1998