Innovation Survey 2012-2014

Methodological Note on the Innovation Survey 2012-2014
The Innovation Survey was carried out during the fourth quarter of 2015
with reference period 2012-2014. The aim of the survey, which was carried out for the seventh time in Cyprus, was the collection of data about new or significantly improved products and processes and other related activities such as organisational and marketing innovation. The previous similar surveys referred to the time periods 2000-2002, 2002-2004, 2004-2006, 2006-2008, 2008-2010 and 2010-2012.
The survey covered only enterprises with 10 or more employees. The
population of the survey numbered 1.602 enterprises, active in one of the following branches of economic activity (in brackets, the NACE Rev. 2
Industry - Mining and quarrying (NACE 05-09) - Manufacturing (NACE 10-33) - Electricity, gas, steam and air conditioning supply (NACE 35) - Water supply; sewerage, waste management and remediation
activities (NACE 36-39)
Services - Wholesale trade, except of motor vehicles and motorcycles (NACE 46) - Transportation and storage (NACE 49-53) - Information and communication (NACE 58-63) - Financial and insurance activities (NACE 64-66)
- Architectural and engineering activities; technical testing and analysis (NACE 71) - Scientific research and development (NACE 72) - Advertising and market research (NACE 73)
The survey was fully harmonised with the methodological guidelines set out by the Statistical Office of the European Union (Eurostat), on the basis of the core questionnaire adopted by all EU Member States within the
context of the Community Innovation Survey (CIS 2014). The survey was carried out in accordance with the provisions of the Commission Regulation (EC) No 995/2012. To enable international comparisons, the definitions and concepts of the Oslo Manual, developed by the Organisation for Economic Co-operation and Development (OECD), were used.
The survey was carried out by personal interview at the enterprises’ premises. Since the majority of the questions posed related to strategic
planning and management issues, efforts were made to ensure that the interviews were carried out either with the general manager or with other senior staff of the enterprise who would be familiar with its performance, objectives and prospects.
Types of innovation There are 5 types of innovation activities which create 2 innovation Technological product and process innovation
- Product innovation - Process innovation - Ongoing and/or abandoned innovation activities
Non Technological product and process innovation - Organisational innovation - Marketing innovation
The survey focussed mainly on the first category of innovation activities.

Technological product and process innovation Technological innovation is a new or significantly improved product (good or service) introduced to the market or the introduction within an enterprise of a new or significantly improved process. Innovations are based on the results of new technological developments, new combinations of existing technology or the utilisation of other knowledge acquired by the enterprise.

Innovations should be new to the enterprise concerned; for product innovations they do not necessarily have to be new to the market and for process innovations the enterprise does not necessarily have to be the first to have introduced the process. In addition, it is not of interest whether innovations were developed by the innovating enterprise or by another enterprise. However, purely selling innovations wholly produced and developed by other enterprises are not included as an innovation
activity.
Product innovation is the market introduction of a new or significantly improved good or service with respect to its fundamental characteristics and capabilities, technical specifications, incorporated software or other immaterial components, intended uses, or user friendliness. Changes of a solely aesthetic nature are not included.
Process innovation is the implementation of a new or significantly
improved production process, method of supplying and distribution, or support activity for the goods or services. The outcome (of the process) should be significant with respect to the level of output, quality of products or costs of production and distribution. Purely organisational or managerial changes are not included.
The ongoing and/or abandoned innovation activities include the acquisition of machinery, equipment, software and licenses, engineering and
development work, training, marketing and Research and Development (R&D) activities when they are specifically undertaken to develop and/or implement a product or process innovation and for some reasons either they are not completed and continue or either they are abandoned and terminated. Basic R&D is also included as an innovation activity even when not related to a product and/or process innovation.
Non Technological product and process innovation

Organisational innovation is the implementation of new or significant changes in firm structure or management methods that are intended to improve the enterprise’s use of knowledge, the quality of goods and services or the efficiency of work flows. The innovation must be the result of strategic decisions taken by management. Mergers and acquisitions, even if for the first time, are excluded.
Marketing innovation is the implementation of a new marketing concept or
strategy that differs significantly from the enterprises existing marketing methods and which has not been used before. It requires significant changes in product design or packaging, product placement, product promotion or pricing, that aim at increasing the appeal of goods and services or entering new markets. Seasonal, regular and other routine changes are excluded.
The degree of innovation activity in an enterprise is summarised as

1. Total enterprises 1.1. Innovation active enterprises 1.1.1. Enterprises with technological innovation 1.1.1.1. Product and/or process innovation 1.1.1.1.1. Product innovation only 1.1.1.1.2. Process innovation only 1.1.1.1.3. Product and process innovation
1.1.1.2. Ongoing and/or abandoned innovation activities 1.1.2. Enterprises with non technological innovation 1.1.2.1. Organisational innovation only 1.1.2.2. Marketing innovation only 1.1.2.3. Organisational and marketing innovation 1.2. Non-innovative enterprises
Environmental innovation
Environmental innovation is a new or significantly improved product (good or service), process, organisational method or marketing method that creates environmental benefits compared to alternatives, which can be the primary objective of the innovation or a by-product of other objectives or can occur during the production of a good or service, or during its consumption or use by the end user of a product. The data in the tables
This file consists of 10 tables in total which give the proportion of enterprises, by size class and economic activity, for technological innovation, non technological innovation, barriers of innovation, public sector procurements and environmental innovation.
Innovation co-operation is the active participation with other enterprises or non-commercial institutions in innovation activities. Both partners do not need to commercially benefit. The pure contracting out of work with
no active co-operation is excluded.
Funding of innovation includes the financial support via tax credits or deductions, grants, subsidised loans and loan guarantees from any level of government. Research and other innovation activities conducted entirely for the public sector under contract are excluded.

Interpretation of the tables In the table for technological product and process innovation, the number
30,27 means that in size class 10-49 the proportion of all enterprises with technological innovation activities was 30,27%. Within this size class falls 83,39% of the total number of enterprises covered by the survey.
Likewise, in the table for non technological innovation, the number 20,67 means that in size class 10-49 the proportion of all enterprises with both technological and non technological (organisational and/or marketing)
innovation activities was 20,67%. The remaining 9,60% (= 30,27 - 20,67) had technological innovation activities only but no organisational and/or marketing innovation.
If one wants the respective proportion among enterprises with technological innovation activities, he needs to divide the number 20,67 with 30,27 (= 68,28%).
The opposite holds for the tables where the proportions are among
enterprises with technological innovation activities where, if someone wants the respective proportion among all enterprises in size class 10-49, he needs to multiply with 30,27%. Likewise, for the tables where the proportions are among enterprises without technological innovation activities, he needs to multiply with 8,04% (the proportion of all enterprises in size class 10-49 with only non technological innovation activities), etc.


Last Updated: 05/04/2019