Comprehensive coverage

The survey of the National R&D Council at the Ministry of Science: only 25% of the companies in the economy produce technological innovation

The survey shows that between 2010 and 2012, 25% of the companies introduced some kind of technological innovation - this compared to 33% in 2008-2006.

Innovation in Israel. Illustration: shutterstock
Innovation in Israel. Illustration: shutterstock

25% of the companies in the business sector produce technological innovation, of which 65% are from the computer programming and consulting sector - this is according to a business innovation survey carried out by the CBS for the National Research and Development Council in the Ministry of Science, which examined the entry of innovative or significantly improved products into the market.

The survey shows that between 2010 and 2012, 25% of the companies introduced some kind of technological innovation - this compared to 33% in 2008-2006. According to the survey, 18% of the companies presented innovation in the product, and 17% of the companies presented innovation in the process. 13% of the companies presented technological innovation that was new in the markets in which they operated and 10% of all companies presented both product innovation and process innovation.

The percentage of companies that presented technological innovation was very high in the computer programming and consulting sector - 65%, as well as 68% in the scientific research and development sector and 67% in the high technology sectors. In contrast, they stood out inTechnological innovation Companies in the fields of financial services and insurance services are low 13%, mining and quarrying 17%, hospitality and food services 20%, and transportation services, mail storage and brokerage 16%. Companies in the traditional technology sectors reported a relatively low rate of technological innovation - 25% - a significant decrease compared to 38% in 2008-2006.

According to the findings, 76% of the companies developed the innovation themselves. In 23%, the development is also done by other institutions that are not related to the company or in cooperation with these institutions. However, only about 6% of innovative companies and about 1.5% of all companies in the business sector collaborate with universities in Israel.

"The low percentage of business companies cooperating with research institutions indicates a failure in transferring knowledge from this sector to industry," says the Minister of Science, Technology and Space Yaakov Perry. "Our role as a government is to nurture research and development in universities, but also to help this knowledge be applied in industry and bring about growth in the economy. In order to bridge this gap, we are promoting the establishment of research institutes such as institutes that have shown success in overcoming the problem in advanced countries."
"The survey points to the noticeable and widening gaps between the various branches of the economy," says the chairman of the National R&D Council at the Ministry of Science, Prof. Col. (Ret.) Yitzhak Ben-Israel. "Israel leads the world in investment in R&D as a percentage of GDP, but the innovative activity that drives the economy is concentrated in a limited number of industries - mainly in the high-tech sector - and has not yet permeated other parts of the economy."

The survey was conducted among 2,316 business companies that have at least 10 jobs. In addition, companies with at least 5 jobs in the programming and computer industry and in the scientific research industry were also included. According to the definition of the survey, innovation is the process of turning ideas into sustainable technologies and products that can be integrated into the economy and society.

The survey also shows that large companies - with 500 or more jobs - have the highest rate of technological innovation. 62% of the large companies reported some kind of technological innovation and 39% of the companies were the first to introduce their innovation to the markets. The data shows that the higher the number of jobs, the higher the rate of innovation in the company. It was also found that even in programming and consulting companies in the field of computers their 9-5 employees produced 56% of the companies for technological innovation.

30% of technologically innovative companies collaborate with external parties. The segmentation of this group shows that 83% of these companies cooperate with external parties in Israel, 48% of the companies cooperate with parties in Europe, and 38% of the companies cooperate with external parties in the USA. Most of the collaborations are carried out with suppliers of equipment, materials, components, software, etc. (65%), while 51% collaborate with external customers or consumers in the private sector.

In the companies included in the survey, 1,156 thousand jobs were registered in 2012, of which 29% are jobs for those with education or training, including those with a PhD or higher, engineers and scientists in the field of science and technology, and the percentage of jobs for academics was 23%. In the past decade, the number of jobs for academics in the industry increased by 64%. These testify to the structural change that has taken place in the industry in the last decade. Also, in companies that reported technological innovation, there are more jobs for those with education or training (41%), compared to 18% of the jobs in companies that do not innovate. A high percentage of scientist and engineer jobs are found in companies that have introduced technological innovation (19%), compared to only about 4% in companies where there is no innovation activity.

One response

  1. In order to produce technological innovation at the highest level, it is mandatory to use advanced physical simulation software, through which the only obstacle is not economic, because everything is computerized, not human, because the sophisticated system performs all calculations easily, but only the obstacle of imagination.
    High-quality and advanced technological innovation can only be achieved by using the COMSOL Multiphysics software:
    http://www.numerical.co.il/COMSOL1.html

Leave a Reply

Email will not be published. Required fields are marked *

This site uses Akismat to prevent spam messages. Click here to learn how your response data is processed.