Innovation

1. 1

   Ten (10) percent of all small employers purposefully innovate or invent with the intention of selling or leasing the results of their efforts. Innovations or inventions provide all sales for about one in five of their enterprises; innovations/inventions are responsible for 50 percent or more of sales in more than half. Employee-size of business appears unrelated to the propensity of their owners to purposefully innovate.

2. 2

   Twenty (20) percent of small-businesses employ one or more people, including the owner(s), whose primary job is to develop new products, services, processes, or designs.

3. 3

   Over the last three years, about 4 percent of all small employers or just over 1 percent a year have applied to a government agency for financial assistance to develop new products, services, processes or designs.

4. 4

   More small employers own copyrights (13%) that they actively use in their businesses than own patents (5%).

5. 5

   Design is a major innovative focus. Twenty-one (21) percent of small businesses market design. More than six of 10 that market design have half or more of their sales stem from it. However, the survey does not identify whether the design is for purposes of increasing productivity, such as, an electric circuit on a computer chip, or pleasure, such as, a dress design.

6. 6

   Three of four small employers specifically and directly encourage their employees to suggest ideas for new products and services or better ways to produce and distribute them. Just over half offer bonuses and/or special recognition to employees who make suggestions used to increase business productivity or sales. The most common award is bonuses and recognition (32%) followed by bonuses exclusively (14%) and recognition exclusively (5%). The median number of employees who received an award last year, among those who provided awards, was two.

7. 7

   Five percent of small-business owners claim it would be more accurate to classify themselves as a producer of technology than as a user or an “avoider” of technology. Another four percent volunteer that they are both producers and extensive users of technology. Sixteen (16) percent attempt to avoid technology.

8. 8

   Forty-two (42) percent of all small businesses introduced at least one new or significantly improved product, service, process or design into their sales inventory in the prior year. Most often the introduction was a product (55%), followed by a service (29%), a process (8%) and a design (7%). Thirty-four (34) percent have never introduced a new or significantly improved product, service, process or design. It has been three years or more since another 11 percent have.

9. 9

   The idea for this new or significantly improved product/service/process/design was developed internally in one-third (33%) of cases. Another 42 percent upgraded or modified the idea based on what they saw elsewhere. Almost 12 percent (or 5% of the total population) are trying to license or otherwise sell it.

Volume 5, Issue 6, 2005
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 2Does your business purposefully innovate or invent things with the intention of selling or licensing those innovations or inventions? Top 100
• 4Do you, in your own or in the business’s name, own a patent that you actively use as part of the business? Top 100
• 5Do you, in your own or in the business’s name, own a copyright that you actively use as part of the business? Top 100
• 1Did your business introduce at least one new, or significantly improved product, service, design, or process into the market during the last year?
• 1aWas it one new or significantly improved product, service, design, or process, or was it more than one?
• 1bWas it a product, service, design, or process?
• 1cDid this new or significantly improved, product, service, design, or process put you ahead of the competition, allow you to stay abreast of the competition, or let you catch up to the competition?
• 1dAre you attempting to license, or otherwise sell, the rights of this new (product/service/design/process) to other businesses that will resell it?
• 1eWhere did you get the idea for this (product/service/design/process)? Did you develop it from scratch yourself, upgrade or modify it based on what you saw somewhere else, or directly copy an idea you saw somewhere else?
• 1gApproximately, how many years has it been since your business introduced at least one new or significantly improved product, service, design, or process into the market?
• 2aApproximately, what percent of your sales come from your innovations or inventions?
• 3Within the last three years, have you applied to a government agency for financial assistance to develop new products, services, designs, or processes?
• 6Does your business design things to be sold, whether or not those designs are patentable or copyrightable?
• 6aApproximately, what percent of your sales come from things you have designed?
• 7Do you specifically and directly encourage employees to suggest ideas for new products or services, or better ways to produce or distribute your products or services?
• 7aDoes your business give bonuses or special recognition to employees who come up with useful ideas that you are able to turn into improved products, services, designs, or processes? Is that bonuses, recognition or both?
• 7a1In the last year, how many different employees received such recognition or bonuses?
• 7bDo you have any employees including yourself whose primary job is to develop new products, services, designs, or processes?
• 8Would it be most accurate to describe your business as a producer of technology, an extensive user of technology, or as one that avoids technology whenever possible?
• 9A(reason to avoid technology) Technology costs too much.
• 9B(reason to avoid technology) Confusion and upheaval always accompany technology.
• 9C(reason to avoid technology) Technology depersonalizes and changes the atmosphere.
• 9D(reason to avoid technology) The business ends up serving the technology rather than the opposite.