Maltese businesses spend €100 million on ‘innovation’

517 enterprises (36 per cent of the total) employing 10 persons or more, undertook innovation activity in 2010, data from the National Statistics Office published today shows.

By type of innovation activity, 17.2 per cent (89 enterprises) were solely engaged in technological innovation, and 37.1 per cent in non-technological innovation (192 enterprises). The remaining 236 enterprises (45.6 per cent) were involved in both technological and non-technological innovation. In 2010, 187 enterprises relating to technological innovation reported some form of innovation expenditure.

By employment size, 346 enterprises which carried out innovative activity (66.9 per cent) employed less than 50 persons. On the other hand, large enterprises accounted for 6 of all innovative enterprises. During this period, 30.6 per cent of all small enterprises undertook innovative activity, whereas 71.7 per cent of large enterprises were innovative.

Innovation expenditure for 2010 amounted to €99.1 million. 32 per cent of all innovation expenditure arose from printing and reproduction of recorded media. At section level, manufacturing activity absorbed 65.4 per cent of all innovation expenditure. This amounted to €64.8 million. By type of innovative expenditure, the acquisition of machinery and equipment amounted to €71.6 million (72.2 per cent), with intramural R&D comprising 24.2 per cent.

222 enterprises (68.3 per cent) of all technological innovative enterprises revealed at least one main objective. For every employment size class, improving the quality of goods and services was the primary objective, closely followed by increasing the range of goods and services offered.

15.3 per cent of non-innovative enterprises provided at least one reason for not being innovative, mainly that innovation costs are too high, closely followed by lack of funds.

The survey revealed that 428 enterprises introduced organisation and/or marketing innovations. In all employment sizes, organisational development superseded marketing innovation.

80.3 per cent of all innovative enterprises provided skills training for employees. Whereas market research was predominant in in-house training, external training mainly focused on web design, software development and graphic arts/layout and advertising.

In contrast, 73 per cent of all non-innovative enterprises did not provide skills training within the enterprise. Of those that provided training, graphic arts/layout and advertising and web design were predominant.