%0 Journal Article %J Technology Innovation Management Review %D 2016 %T Revealing Hidden Innovation: Patterns of External Innovation Investment in Australian Businesses %A Kieran O’Brien %K Australia %K external investment %K hidden innovation %K innovation investment %X Recent theory and literature suggests that many businesses now innovate based on the adoption and modification of knowledge, technology, and innovations sourced externally rather than developed in-house. Yet, little is known about the value and economic impact of expenditures on outsourced innovation activities, which are often referred to as "hidden innovation" by many scholars. The issue is due largely to a lack of consistent measurement, available data, and analyses of expenditures on hidden innovation. In contrast, there is a long history of cross-country data collection on in-house research and development (R&D) activities and costs, and much research focuses on innovations involving in-house R&D effort. This study reviews results from a survey aimed at collecting new economy-wide data on external innovation investments in Australia. The results estimate total unmeasured or "hidden" investment in external innovation activities by Australian businesses at $3.5 to $4 billion in 2014, an amount large enough to stimulate important economic activity and warrant future research. This article discusses the implications of these results for policy, business strategy, and future research on innovation. %B Technology Innovation Management Review %I Talent First Network %C Ottawa %V 6 %P 41-48 %8 06/2016 %G eng %U http://timreview.ca/article/996 %N 6 %1 Australian Innovation Research Centre Kieran O'Brien is a Senior Research Fellow at the Australian Innovation Research Centre (AIRC) at the University of Tasmania, Australia. His role involves ongoing management of the AIRC's Tasmanian Innovation Census (TIC) project and related research. Kieran's research interests focus on innovation measurement and innovation activities in the business sector, particularly in low-tech industries where innovation often occurs through a diffusion-adoption process. Related interests include the different modes of innovation, innovation capability and innovation policy as they relate to economic development. Kieran has previously worked in management, research and policy analysis roles in Commonwealth Government agencies including the Australian Bureau of Statistics and the Australian Department of Education, Science and Training. %R http://doi.org/10.22215/timreview/996