Innovation Statistics

INSTAT carried out the survey on innovation activity in enterprises with 10 or more persons employed for the reference period 2018-2020. Innovative enterprises are all business entities that introduced a new or improved product or process (or their combination) or had abandoned or suspended innovation activities.

During the period 2018-2020, 36.6 % of enterprises carried out an innovation activity. Innovation activity of the enterprises providing services 41.0 % (sections G, H, J, K, and M of NACE Rev. 2) comparing to enterprises operating in the industrial sector (B, C, D, E of NACE Rev. 2) by 32.1 % (Tab. 1). Compared to the data of the previous innovation survey with reference period 2017-2019, innovation activity decreased by 1.7 % (from 38.3 % to 36.6 %). This decline was observed in enterprises in the industry and services sector respectively by 2.0% and 1.3%. Innovation activity was more present in the group of large enterprises, with over 250 employees with 68.2%.

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Innovation Activities in Enterprices, 2019-2021

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DateStatisticsPeriod
27-06-2024 Innovation in Enterprise2020-2022
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Statistical survey on Innovation activity is conducted once every two years and the observation period covered is a three-year period. The survey provides comparable information on product innovations and business processes presented by enterprises in Albania.

This survey is conducted in all European countries and based on internationally harmonized definitions, which allows the comparisons between the different regional, EU 27 as well as EFTA countries. Data from national Innovation surveys are collected and compiled according to the guidelines laid down in the Oslo Manuals - the reference manuals for innovation statistics. The last editions of Oslo Manual are:

 

Classification system

The main areas of dissemination are the activity sector of the company described according to the Statistical Classification of Economic Activities in the European Community (NACE Rev. 2) and the size of the enterprise.

 

Sector coverage

The observations units are all enterprises of the non-financial and financial sector with 10 or more employees mainly engaged in the following Sections and divisions of NACE Rev.2:

  • (B) Mining,
  • (C) Manufacturing,
  • (D) Electricity, gas steam and air conditioning supply,
  • (E) Water supply; sewerage, waste management and remediation activities
  • (G46) Wholesale trade, except of motor vehicles and motorcycles
  • (H) Transportation and storage,
  • (J) Information and communication,
  • (K) Financial and insurance activities,
  • (M71-73) Architectural and engineering activities; technical testing and analysis. Research and development, Publicity and market research.

Statistical unit

The statistical population statistics comprise all active enterprises in Albania of all legal forms. The sample consists of all enterprises that, according to statistical business register were active in December of the reference year in economic activities covered by Innovation statistics excluding:

  • Local units.
  • Enterprises with the main activity code (NACE) that are out of scope of Innovation activity survey.
  • Enterprises with less than 10 employees.

Legal acts and other agreements

The legal basis on National Level consists on:

  • Law No.17/2018, "On Official Statistics"
  • Official Statistics National Program, 2022 – 2026

Old legislation European/International level (No longer in force):

  • Commission regulations (EC): Decision No 1608/2003/EC of The European Parliament and of the Council of 22 July 2003 concerning the production and development of Community statistics on science and technology 5
  • Commission Implementing Regulation (EU) No 995/2012 of 26 October 2012 laying down detailed rules for the implementation of Decision No 1608/2003/EC of the European Parliament and of the Council concerning the production and development of Community statistics on science and technology
  • Oslo Manual 3th Edition

On European/International level (In-force):

  • The Innovation Survey is based on Regulation (EU) 2019/2152 on European business statistics and is complemented by an implementing regulation that is adapted every two years.
  • Oslo Manual 4th Edition

Statistical concepts and definitions

An innovation is a new or improved product, or process (or combination thereof) that differs significantly from the unit’s previous products or processes and that has been made available to potential users (product) or brought into use by the unit (process).

The minimum requirement for an innovation to occur is that the product or process (marketing or organizational) method must be new or significantly improved to the firm. This includes products, processes and methods that firms are the first to develop and those that have been adopted from other firms or organisations.

Innovation activities include all developmental, financial and commercial activities undertaken by a firm to produce an innovation.

Types of innovation activities:

  • Successfully introduced product or process innovation
  • Completed innovation activities but not yet implemented innovation
  • On-going innovation activities, with work in progress that has not yet resulted in the implementation of an innovation
  • Abandoned innovation activities before the implementation of an innovation
  • R&D activities


R&D activities comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture, and society – and to devise new applications of available knowledge.

A product innovation is a new or improved good or service that differs significantly from the firm’s previous goods or services and that has been introduced on the market. Changes of a solely aesthetic nature and the simple resale of new goods and services purchased from other enterprises are not considered as innovation.

A business process innovation is a new or improved business process for one or more business functions. It differs significantly from the firm’s previous business processes and has been implemented by the firm. The new definition of business process innovation merges the earlier concepts of process, marketing, and organisational innovation.

In the 3rd edition of the Oslo Manual, i.e. for Innovation surveys from 2008 to 2016, 4 types of innovation were distinguished:


Product innovations, i.e. the introduction on the market of a new or significantly improved good or service compared to the products previously developed by the company in terms of its essential characteristics, its user-friendliness (ease of use), its components (or its use) and the integrated elements;


Process innovation, i.e. the implementation of a new or significantly improved production process, distribution method or support activity or support. Innovations related only to organization or marketing were excluded;


Organizational innovation: a new way of operating the company (including knowledge management), a new way of organizing work or its external relations that was not previously used in the company;

 
Marketing innovation: this refers to the implementation of new concepts or new sales strategies that differ significantly from existing sales methods in the company and that have not been used before. It includes changes in the design, packaging or presentation of a good or service, its positioning, promotion or price if they have a significant impact.

Cooperation in innovation activity is the active participation of enterprises or other organizations. Partners do not need to benefit economically. Pure contracting is excluded if there is no active cooperation. An innovation-active enterprise is an enterprise engaged during the observation period in one or more activities to develop or implement new or improved products or business processes.