Digital technology boosts innovation in the tertiary sector

Between 2016 and 2018, 41% of companies employing at least 10 workers were innovative in the non-agricultural market sectors. Business process innovations (33%) were more common than product innovations (25%). Among those companies innovating in products, 68% introduced at least one new product to one of their markets.

Innovations were more frequently observed in information & communications (69% of innovative companies), industry (56%), financial and insurance activities (49%) and specialised scientific and technical activities (48%). The digital transformation continued to drive innovation activities, from the system of production to customer experiences.

Companies that were larger and part of a group tended to innovate more.

Companies innovating in products or processes pledged 4% of their turnover to innovation activities. Two thirds of that allocated capital was invested in research and development.

Four out of every ten innovative companies received funding for their innovation activities. Tax credits, tax relief and exemptions from social security contributions were the most commonly requested forms of aid.

Six out of every ten companies failed to innovate because they had other priorities or a lack of qualified staff or otherwise deemed innovation costs to be excessive.