Business Innovation
Share of businesses involved in innovation activities since 2010-2012
Data
Business Innovation
Description
Information on the percentage of businesses involved in innovation activity from the UK Innovation Survey (UKIS) by type of innovation activity and number of employees.
The UK definition of innovation is based on an Organisation for Economic Co-operation and Development (OECD) definition, outlined in the Oslo Manual 2018. This definition includes any of the following activities, if they occurred during the survey period:
[1] The introduction of a new or improved product (goods or services).
[2] Business processes used to produce or supply all goods or services that the business has introduced, regardless of their origin. These innovations may be new to business or new to the market.
[3] Engagement in innovation projects not yet complete or abandoned.
[4] Investment activities in areas such as internal research and development, training, acquisition of external knowledge or machinery and equipment linked to innovation activities.
This definition is then used to define the measures of innovation activity as follows:
Innovation active - a business that had engaged in any of the activities described in points [1] to [3] above.
Broader innovator - a business that had engaged in any of the activities described in points [1] to [4] above.
Product innovator - a business that undertakes activity [1] from above is described as a 'product innovator'. That is a business that brings to the market or into use by the business, new and improved products, including both tangible goods and the provision of services.
Business process innovator - a business that undertakes activity [2] from the definition of innovation above is described as a 'business process innovator'. This definition was introduced in the 2023 UKIS (survey period 2020 to 2022). It is broader than the process innovator definition in previous UKIS surveys and is therefore not comparable. It aligns with the OECD's revised approach in conceptualising 'innovation'.
To provide an approximate time series for business process innovators, we have made the assumption that business process innovators in UKIS 2023 are roughly equivalent to businesses in previous surveys that were either 'Process innovators' or 'Wider innovators'. More information on this can be found in our UK Innovation Survey - Results for Scotland 2023 publication. Caution is advised when looking at the change between 2020 to 2022 and earlier survey periods.
As a result of the above changes, 'Wider innovation active businesses' and 'Process innovator' are no longer included as categories of 'Innovation Activity' in the data. In addition, the combined 'Product AND process innovation' and 'Product AND/OR process innovation' categories are no longer included. Instead, the data provides information on businesses that are 'Business process AND product innovators' and 'Business process AND/OR product innovators'.
Innovation related activity - a business that undertakes activity [4] from the definition of innovation above is described as a 'Business engaged in an innovation related activity', which includes categories of innovation directed investment such as: R&D (research and development), capital goods and software acquisition, design activity, for implementing current innovations or directed to future product or process changes.
Users should note that 'Scaled back innovation' was a new option introduced in UKIS 2017 (2014 to 2016 reporting period). It was removed as an option in UKIS 2023 (2020 to 2022 reporting period).
Geographic locations of businesses are based on businesses' head office location. Business size, given by number of employees, is the total number of employees anywhere in the UK, irrespective of head office location. For example, a business in Scotland with 250 employees may have some based at their head office in Scotland and others based elsewhere in the UK.
An asterisk (*) indicates that a value has been withheld from publication to maintain confidentiality. A hyphen (-) indicates that the value is not available (for example, 'Scaled back innovation' was only an option for the 2014-2016 to 2018-2020 survey reporting periods, therefore is unavailable for other survey periods).
The UKIS is the main data source for business innovation in the UK. The survey is conducted every 2 years and asks businesses with 10 or more employees from Standard Industrial Classification 2007 (SIC 2007) sectors B to N for information on their innovation activities over the preceding three-year period. The most recent survey is the UKIS 2023, which covered innovation activity in the period 2020 to 2022. If information was not available for calendar years, businesses were asked that their return covered the nearest financial years. The three year reporting period is consistent with previous UKIS surveys and is widely used internationally. The survey was voluntary and was conducted primarily through an electronic questionnaire. Businesses that did not complete an electronic response were contacted for a telephone interview. Prior to the UKIS 2017 (reporting period 2014 to 2016), the survey was conducted through both a postal questionnaire and telephone interview for businesses that had not yet completed a postal response.
The UKIS 2023 sampled 32,273 UK businesses, with responses received from 14,570, giving a response rate of 45.1%. 1,547 businesses based in Scotland responded, giving a Scottish response rate of 45.7%. Generally, around 1,500 businesses based in Scotland respond to the survey.
Survey results are based on weighted data in order to be representative of the population of businesses (with 10 or more employees from SIC 2007 sectors B to N).
The coronavirus (COVID-19) pandemic began in the first quarter of 2020 and is likely to have had an impact on business innovation in the three year period businesses were reporting on in the UKIS 2023, as well as the latter part of the period covered by the previous UKIS (UKIS 2021, reporting period 2018 to 2020). High inflation and energy prices may also have had an impact in the latest survey.
The UKIS 2023 was funded and developed by the UK Government Department for Business and Trade (DBT). It was administered by the Office for National Statistics (ONS) on behalf of DBT and the UK Government Department for Science, Innovation and Technology (DSIT).
More information is available from our UK Innovation Survey - Results for Scotland 2023 publication and the UK Government's United Kingdom Innovation Survey 2023: Report.
Metadata
| Theme | Business, Enterprise and Energy |
|---|---|
| Organisation | Scottish Government |
| License | UK Open Government Licence (OGL) |
| Published | |
| Last updated | |
| Next update | 1 Oct 2026 |
| Update frequency | annual |
| Reference period | 2010 to 2022 |
| Geographic coverage | Country |
| Contact | industrystatistics@gov.scot |
Data quality
Completeness
More information on the survey, methodology and results can be found in UK Innovation Survey - Results for Scotland 2023 and the United Kingdom Innovation Survey 2023: Report.
Tables to accompany both publications, including additional analysis of the survey, are available as an accessible Excel file from the Scottish Government website and as Excel and Open Document Spreadsheet files from the UK Government website.
Uniqueness
Not assessed
Consistency
As the UKIS is a UK-wide survey, comparisons can be made with the UK as a whole, and the countries and regions that make up the UK.
Sample selection for the UKIS 2023 was conducted by the ONS and followed very similar sampling methodology to the previous surveys. Generally, around 1,500 businesses based in Scotland have responded to the survey.
The questionnaire used for the most recent survey (UKIS 2023) was broadly similar to that used for previous surveys. However, the UKIS 2023 definition of 'Business process innovator' is broader than the definition of 'Process innovator' used in previous surveys and is therefore not directly comparable. To provide an approximate time series for business process innovators, we have made the assumption that business process innovators in UKIS 2023 are roughly equivalent to businesses in previous surveys that were either 'Process innovators' or 'Wider innovators'. Users should note that the UKIS 2023 includes methods of organising HR management and marketing methods for after sales services in the definition of 'Business process innovator', these were not included explicitly in earlier surveys' definitions of either 'Wider innovators' or 'Process innovators'. Therefore, caution is advised when looking at the change between 2020 to 2022 and earlier survey periods.
As a result of the above changes, 'Wider innovation active businesses' and 'Process innovator' are no longer included as categories of 'Innovation Activity'. In addition, the combined 'Product AND process innovation' and 'Product AND/OR process innovation' categories are no longer included. Instead, the data provides information on businesses that are 'Business process AND product innovators' and 'Business process AND/OR product innovators'.
Users should note that 'Scaled back innovation' was a new option introduced in UKIS 2017 (2014 to 2016 reporting period). It was removed as an option in UKIS 2023 (2020 to 2022 reporting period).
Comparisons with previous surveys and with the UK and its constituent regions and countries are available in our UK Innovation Survey - Results for Scotland 2023 publication and the UK Government's United Kingdom Innovation Survey 2023: Report. Both are Official Statistics publications.
It is also possible to compare the rates of business innovation from the UKIS with those for OECD and partner economies because the UK definition of innovation is based on an OECD definition. However, the OECD reports on a smaller group of industrial sectors compared to the UKIS. For example, the UKIS includes businesses in the 'Construction', 'Retail' and 'Accommodation and Food Services' sectors. These sectors are not included in OECD data. OECD results also lag those of the UKIS. More information, and comparisons, can be found in UK Innovation Survey - Results for Scotland 2023 and the United Kingdom Innovation Survey 2023: Report.
The results from the UKIS are based on weighted data in order to be representative of the population of businesses. Survey responses are weighted to the total business population (with 10+ employees from Standard Industrial Classification 2007 sectors B to N), using the Inter-Departmental Business Register (IDBR). They are not weighted by factors which would give more weight to larger businesses, such as employment or turnover.
Timeliness
The UKIS is carried out biennially and businesses are asked to report on their innovation activities in the preceding three-year period. The latest survey for 2023 asks businesses about their innovation activities in the 2020 to 2022 period. UK level results from the UKIS 2023 were published by the UK Government Department for Business and Trade on 9 May 2024. We aim to publish more detailed analysis for Scotland as soon as feasible after the UK Government has published UK level results (which include headline results for Scotland). For the UKIS 2023, we released our results for Scotland publication on 19 June 2024.
Validity
The UKIS is the main data source for business innovation in the UK. It is used widely across Government to help improve policy and by the research community for understanding the innovation landscape. UK level results from the survey are included in the OECD's Innovation Indicators database, which provides information about the innovation activities of businesses across OECD member countries and other economies.
The UKIS 2023 questionnaire is available from the UK Government website. Questionnaires for earlier surveys can be accessed via the UK Innovation Survey Collection webpage.
The survey covers businesses with 10 or more employees in sections B-N of the Standard Industrial Classification (SIC) 2007. The sample is drawn from the ONS Inter-Departmental Business Register (IDBR). Geographic locations of businesses are based on businesses' head office location. Business size, given by number of employees, is the total number of employees anywhere in the UK, irrespective of head office location. For example, a business in Scotland with 250 employees may have some based at their head office in Scotland and others based elsewhere in the UK. Survey results are based on weighted data in order to be representative of the population of businesses.
Accuracy
The UKIS is a sample survey and as a result estimates will be affected by sampling error. Therefore, apparent differences of a few percentage points may not reflect real differences in the business population. Sampling errors will be larger for sub-groups of the sample than for the sample as whole.
Percentages have been rounded to 1 decimal place.
The results from the UKIS are based on weighted data in order to be representative of the population of businesses. Survey responses are weighted to the total business population (with 10+ employees from Standard Industrial Classification 2007 sectors B to N), using the Inter-Departmental Business Register (IDBR). They are not weighted by factors which would give more weight to larger businesses, such as employment or turnover.
Quality management
These are Official Statistics and follow the high professional standards set out in the Code of Practice for Official Statistics and the Pre-release Access to Official Statistics (Scotland) Order 2008.
Additional details
Revisions
Revisions and corrections to this publication are dealt with in accordance with the Scottish Government's published policy.
Confidentiality policy
Statistical disclosure control is applied to tables in order to maintain the confidentiality of the data. Cells based on business counts below a minimum threshold have had their value withheld from publication.
An asterisk (*) indicates that a value has been withheld from publication to maintain confidentiality. A hyphen (-) indicates that the value is not available (for example, 'Scaled back innovation' was only an option for the 2014-2016 to 2018-2020 survey reporting periods, therefore is unavailable for other survey periods).