UK innovation survey 2021: results for Scotland

Innovation Activity

Innovation takes place through a wide variety of business practices. A range of indicators are used to measure this within the enterprise or in the economy as a whole. For example, the resources allocated to innovation are used as a measure of effort employed. The introduction of new/ improved products and processes is used as a measure of achievenment.

This reports covers the types and levels of innovation activity in Scotland over the three year period, from 2018 to 2020. It also makes comparisons with the results for the UK as a whole.

UKIS 2021 asked businesses for information on their innovation activities over the three-year period from 2018 to 2020. If information was not available for calendar years, they were asked that their return covered the nearest financial years. The coronavirus (COVID-19) pandemic began in Q1 2020 and is likely to have had an impact on business innovation towards the later part of the three-year period they were reporting on.

Geographic location of businesses are based on businesses’ head office location.

Definition of Innovation

The UK definition of innovation is based on an Organisation for Economic Co-operation and Development (OECD) definition, outlined in the Oslo Manual 2018.

‘Active’ innovators develop:

• new or significantly improved product (good or service) or process
• new or significantly improved forms of organisation, business structures, practices or marketing concepts/strategies
• innovation which is incomplete, scaled back or abandoned

‘Broad’ innovators develop:

• new or significantly improved product (good or service) or process
• new or significantly improved forms of organisation, business structures, practices or marketing concepts/strategies
• engage in innovation which is incomplete, scaled back or abandoned
• investment in internal research and development, training, external knowledge, machinery and equipment for innovation

‘Wider’ innovators develop:

• new or significantly improved forms of organisation, business structures, practices or marketing concepts/strategies