Sources of innovation : an exploratory analysis of four industry sectors in Australia

Not all industry sectors are involved in similar markets and the need for new products and new knowledge varies across sectors. While some industries have mature technologies and markets, other industries focus on new markets and new technologies. This study compares how four industry sectors in Australia scan their environments for ideas and innovations that will improve their competitive position. Innovation requires new ideas and knowledge and governments are increasingly encouraging businesses to work with publicly funded research and technology organisations to access innovative ideas. In this exploratory study we investigate four industry sectors and consider the size of the firms and their relative competitive position to determine if these influence where firms scan for innovative ideas and knowledge. While firms from different sectors and of differing sizes and competitiveness use a wide range of sources of ideas, the majority continues to rely on clients and sales staff for ideas. This reliance on traditional sources even in emerging sectors may make it difficult for firms to access leading edge ideas.