Despite brilliant performances from some of the Province's top companies, the figures from the Department of Enterprise, Trade and Investment (DETI)show that Northern Ireland as a whole continues to trail the rest of the UK.
The figures come amid continued emphasis on political and business circles for the need to research and develop new products. However, there was little or no improvement in figures for 2004-2006 said DETI.
The latest UK Innovation Survey showed 57 per cent of Northern Ireland
businesses engaged in some form of innovation - just one per cent up on the previous two years - but still seven per cent behind the UK average.
The figures included those local businesses that introduced new products, 20 per cent, new processes, 11 per cent, or who reported innovation related expenditure, 56 per cent.
Northern Ireland businesses were less likely to be 'innovation-active' than those in the UK as a whole, where the innovation rate was 64 per cent.
The figures were acknowledged by Economy Minister Arlene Foster who
praised those firms who had recognised that in the new knowledge-based global economy, innovation was critical for sustained long-term business growth.
Urging others to follow that lead she said: "There is the potential for all businesses to benefit by continuously seeking to improve their products or processes and by adopting or developing new technologies.
"It is important that the private sector grasps this challenge and ensures that innovation activity is embedded in our business culture. This is particularly crucial for small and medium sized enterprises."
Innovative businesses would be best placed to resist the downturns in the global economy, she added.
"We have a number of excellent examples of such businesses and the challenge is to replicate this throughout the economy.
"Every business should identify any existing barriers to innovation and consider how these might be overcome."
As across the UK innovation rates in Northern Ireland vary across industrial sectors. A larger proportion of enterprises in the production and construction sector - 63 per cent - were innovative
compared to those in the distribution and services sector at 55per cent.
Encouraging the spread of innovation was an integral part of the Programme for Government, she said, and Invest NI offered a number of programmes which could assist in the proces.