Modelling the Relationships Between the Use of STEM* Skills, Collaboration, R&D, and Innovation among Australian Businesses

Abstract

This paper investigates the relationship between the use of STEM/Non-STEM skills, collaboration, R&D and innovation, including novelty of innovation, among Australian businesses. The analysis employs standard probit modelling using the 2010-11 and 2011-12 ABS Business Characteristics Survey data. Results show that the use of STEM skills and collaboration in R&D are very strongly associated with an increase in the likelihood of innovating. The combined impact of collaboration in R&D, expenditure in R&D, and the use of STEM skills on the probability of having a ‘new to the world’ type of innovation is also found to be strong.