SURVEY RESULTS: INNOVATION IN CYPRIOT ENTERPRISES 2004 - 2006

On the basis of the results of the Innovation Survey carried out by the Statistical Service among enterprises with 10 or more employees, 39,6% of enterprises had some form of innovation activity during the period 2004-2006. Among industrial enterprises, this proportion stood at 46,3% compared to 33,5% in the services sector. The corresponding figures recorded in the previous similar survey which referred to the period 2002-2004 were 46,1% for the total, 53,2% for industry and 37,9% for services. With regard to the size-class breakdown, the larger the enterprise the more likely it was to have had some form of innovation activity during the enterprises with 50-249 employees and 82,1% for enterprises with 250 and more employees. According to 69,7% of all enterprises with innovation activity, innovation had a high impact on improving their production flexibility. About 62,5% reported a high impact on increasing their production capacity, 57,5% on improving the quality of their goods and services, 55,9% on meeting regulatory requirements, 45,3% on increasing the range of their goods or services, 38,0% on reducing environmental impacts or improving health and safety, 37,9% on entering new markets or increasing their market share, 29,2% on reducing labour costs per unit output and 19,9% on reducing materials and energy per unit output. Among enterprises with no innovation activity, the main factors declared as having a high degree of impact on hampering innovation or influencing a decision not to innovate were the existence of prior innovations (32,2%), the absence of demand for innovations (30,8%), the high costs (20,6%), the uncertain demand for innovative goods or services (16,0%), the lack of funds within the enterprise (15,4%), the lack of finance from sources outside the enterprise (13,3%), the lack of qualified personnel (12,8%) and others.

STATISTICAL SUBTHEME: INNOVATION