Nearly half of all Australian businesses (45%) undertook some form of innovative activity - including the development or introduction of new or significantly improved goods, services, processes or methods - last financial year, according to this report.

Innovative activity increased 22% on the previous year.

Approximately six businesses in ten (59%) within the wholesale trade industry reported being innovation-active, the highest of any industry.

The survey also found that large businesses were almost twice as likely to be innovative than small businesses (71% compared to 37%).

Use of IT

Although the proportion of businesses receiving orders over the internet was relatively unchanged at 24%, the income received from internet orders rose by 20% to $81 billion.

Over one-third (36%) of businesses have a web presence. Large businesses (96%) were more than three times as likely to have a web presence than small businesses (27%).

Broadband reinforced its dominance, with 94% of businesses with internet access having a broadband connection. There was minimal variation at the industry level, ranging from 88% to 99%.