(Australian Associated Press)

Australian business innovation has added almost $70 billion to the economy but is still falling short of its potential, according to research.

A report by Commonwealth Bank suggests the 44 per cent of businesses to have implemented at least one change that, according to international standards, qualifies as an innovation have pumped $69 billion into the economy.

But that figure would rise to $215 billion – adding more than 10 per cent to the country’s GDP – if every business followed suit.

“It’s clear from our research that there’s a strong correlation between how innovation active a firm is and the level of revenue or savings generated,” Commonwealth Bank business and private banking group executive Adam Bennett said.

“This research demonstrates that innovation within Australian businesses delivers significant financial return for individual firms and the broader economy, but true innovation remains elusive for many.”

These report was based on a total Australian market of 530,937 businesses with more than two employees and annual turnover of more than $500,000, with innovation defined according to standards recognised by the OECD (Organisation for Economic Co-operation and Development).

The most innovative industries are manufacturing, with 61 per cent of businesses classified as innovative, followed by wholesale trade (59 per cent).