The Australian Bureau of Statistics (ABS) has just released some interesting data about the relationship between innovation and productivity.

According to “Selected Characteristics of Australian Business, 2011-12,” a company that makes an effort to be innovative is more likely to improve its level of productivity than an organisation that doesn’t.

Andrew Puljic, spokesperson for the ABS, said in a September 19 statement that approximately 33 per cent of Australian businesses that took steps toward innovation saw increases in productivity.

In comparison, only 14 per cent of companies that didn’t innovate in some shape or form saw any improvement in productivity levels.

The ABS’s report also demonstrates that innovative businesses are often more profitable than their more traditional counterparts, and more likely to take on new staff.

Mr Puljic explained that there are a wide range of ways for an organisation to become more innovative.

“It can be the introduction, development or abandonment of a new or significantly improved product or service, it can be improvements in the way a business manages or runs itself, or it can simply be a better way of marketing its products,” he said.

If you want your business to be more innovative and are thinking about making some significant changes to your operations, you should spare a thought for small business insurance.

It’s a good idea to review your retail or manufacturing insurance regularly – at least once a year is common.

However, you should also review your policy every time your business changes in some way – for example, if you introduce a new product, provide a new service, or hire new employees.

If you’re vigilant about reviewing your insurance policy with MGA Insurance Brokers, this will reduce the chances of gaps cropping up in your cover.