Innovation is widely acknowledged as being key to economic growth and progress, particularly as innovation by business enterprises is vital in ensuring their future success and competitiveness in an increasingly competitive global market. With this in mind, the Centre for Science, Technology and Innovation Indicators (CeSTII) was commissioned by the Department of Science and Technology (DST) to undertake a national innovation survey based on international best practice. Innovation surveys are designed to measure the extent of innovation in the business sector of a country and, among other measures, to estimate expenditure on various innovation activities. This report presents the main findings of the South African Innovation Survey 2005, covering the period 2002-2004, and carried out according to international methodology and a core questionnaire provided for the Fourth Round of the Community Innovation Survey (CIS4) for European Union countries, as provided by Eurostat. Detailed data tables analysing the breakdown of responses to the various questions in the survey are provided as an Appendix. Where available, comparisons are made with the results of the CIS4. This is the first time that it has been possible to objectively compare innovation survey data for South Africa with the results of similar surveys in developed countries. This study will inform higher education planning, business policy and trade practice and provides policy makers and planners with essential and comparative data. Readers will find the results contained in this volume encouraging as they reveal just how innovative and competitive South African business enterprises appear to be.