UK innovation survey 2023 – results for Scotland

Definitions

This section gives the definitions of the main measures of innovation activity used in this publication.

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 used in this publication 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 businesses that brings to the market or into use by the business, new and improved products, including both tangible goods and the provision of services. The degree of innovativeness is shown by the distinction between products new just to the business or which are also new to the market.

Business process innovator - a business that undertakes activity 2 from the definition of innovation above is described as a ‘business process innovator’. This definition is broader than the process innovator definition in previous UKIS surveys and is therefore not comparable. It aligns with OECD’s revised approach in conceptualising 'innovation'.

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.