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Service Innovation Policy


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Presentation to EU-SPRI conference, Madrid, April 2013, in perspectives of service innovation and associated policy approaches

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Service Innovation Policy

  1. 1. OMIIR OMIIR Service Innovation and Innovation Policy Ian Miles Manchester Institute of Innovation Research, MBS, Manchester And Laboratory for Research on the Economics of Innovation, HSE, Moscow EU-SPRI Conference Madrid, AprilMadrid, April 2013 EU-SPRI Conference 2013
  2. 2. OMIIR Outline Perspectives on Services and Service Innovation Approaches to service innovation policy Service innovation policy in the twenty-first century EU-SPRI Conference Madrid, April 2013
  3. 3. OMIIR Studies have spelled out policy rationales and instruments EU-SPRI Conference Madrid, April 2013
  4. 4. O Traditional view of service (sector) innovationMIIR (with very few Thus services exceptions) are mainly Service industries relevant to play little role in innovation (technological) innovation Dismissal policy in terms of diffusion Increasingly hard to sustain this view as technology-based services become important to innovation in all sectors; while many of the more traditional service sectors displayed considerable technology adoption and innovation EU-SPRI Conference Madrid, April 2013
  5. 5. O MIIR Positive Views of Service InnovationFramework developed by R A similar (not identical) approachCoombs & I Miles, 2000, had already been developed in the“Innovation, Measurement and 1990s by Gallouj – see recentServices: the new problematique” work like F. Gallouj and F. Djellalin J S Metcalfe & I Miles (eds) (eds) (2010). The Handbook ofInnovation Systems in the Service Dis- Dismissal Innovation & Services, EdwardEconomy Dordrecht: Kluwer missal Elgar: Cheltenham Syn-Services are not just intangible thesis Services are simplyproducts, but often highly intangible goods,specialised/ particularised often low-tech, smallinteractive relationships scale, craft industriesof coproduction Demarc Assim -ation -ilation EU-SPRI Conference Madrid, April 2013
  6. 6. OMIIR Assimilation Perspective Services are Service innovation qualitatively is not distinctive; distinctive, due to it can be studied especially due INTANGIBILTYto and organised in INTANGIBILTY, and ways familiar from INTERACTIVITY, INTERACTIVITY : etc.  different different forms of analysis of forms of innovation and Dis- Dismissal manufacturing innovation & missal innovation process process Emphasise Syn- technological innovation thesis (though some theorists insist this is distinctive – e.g. Barras’ Demarc- Assim- Reverse Product ation ilation Cycle) EU-SPRI Conference Madrid, April 2013
  7. 7. O MIIR Demarcation Perspective Services are Service qualitatively innovation is not distinctive, distinctive; it can especially due to be studied and INTANGIBILTY, organised in INTERACTIVITY, etc.  different ways familiar forms of Dis- Dismissal from analysis of innovation & missal manufacturing Emphasise innovation service process specificities(and diversity across Syn- services) in thesismarketing andmanagement as well as innovation studies Demarc- Assimilat- ation ion EU-SPRI Conference Madrid, April 2013
  8. 8. OMIIR Synthesis (not homogenisation) Exploration of Service Innovation has identified aspects of innovation that are generically important Innovation analysis – and measurement and policy – needs to account for all of these aspects (or if not, to explain why some sorts of innovation are privileged) All sectors have Dismissal Dis- Services become diverse features, more technology- and many “service” missal intensive and elements “industrialised” Synthesis “Servitisation” “Productisation” of of manufacturing services Demarc- Assim- ation ilation (Knowledge intensive) service activities leading innovation (Gallouj’s “inversion” persective) EU-SPRI Conference Madrid, April 2013
  9. 9. OMIIR Reviews of policy approaches EU-SPRI Conference Madrid, April 2013
  10. 10. Perspectives on service innovation policies OMIIR An earlier account: P den Hertog et al (2006) Research and Development Needs of Business Related Service Firms (RENESER Project) Delft: Dialogic innovatie & interactie Contrasted the three perspectives in terms of R&D, Dis- wider innovation, and non-innovation policies missal Synthesis Demarc- Assim- ation ilation EU-SPRI Conference Madrid, April 2013
  11. 11. Service innovation policies - Assimilation OMIIR Service innovation is essentially like manufacturing innovation – but neglected in policies and innovation infrastructure. “Sector neutrality” can be illusory. Service sectors are poorly integrated into innovation systems, require support with awareness, absorption Assim- capacities, network links. There may well thus be Dismissal elements of system failure to address, before “sector- ilation neutral policies” are genuinely so. Synthesis • Include service firms in R&D and innovation support programmes – may require some new targeting, formulation and networking Dis- Demarc- • Develop infrastructure and innovation systems to support service industries ation missal • Support (SME) services in innovation management and entrepreneurship, develop relevant training. EU-SPRI Conference Madrid, April 2013
  12. 12. Service innovation policies - Demarcation OMIIR Service innovation may take distinctive forms and use distinctive methods and tools. These are overlooked in standard innovation indicators, instruments and support. Need to address specific features of innovation (intangible, customer-interface, coproduction and Demar- Dismissal interaction, and experience/content issues) and of cation innovation management. Synthesis •Specific R&D and engineering programmes for service firms & public sector. Awareness raising •Adapt R&D definitions and incentives (as applied in practice) to services. •New tools, techniques, communities of practice to beDis- Assim- supported, beyond R&D. Service design methods. Best practice and roleilation missal models. •Service innovation programmes and centres, with more emphasis on user-driven innovation, etc. Service labs. •IP and Knowledge Management training andApril 2013 support. EU-SPRI Conference Madrid, strategy
  13. 13. Service innovation policies - Synthesis OMIIR All sectors liable to display multiple forms of Synth- innovation, combining technological, esis organisational, and business model innovation. Service activities as elements in and beneficiaries of innovation systems. Services as part of service systems [PSS] Dismissal (including those confronting grand challenges). • Integrate nontechnological and organisational issues into R&D and innovation programmes. •Support innovation in service activities across all sectors •Support KIBS in innovation systems and clustersDemarc- Dis- Assim- ation •User-driven, open, interprofessional and social innovation ilation missal (including “living labs” and demonstrators). PPPs. •Regulations, standards, procurement, legal and financial support (including accounting for intangibles). April 2013 EU-SPRI Conference Madrid,
  14. 14. Most active countries have some policy mix OMIIR Typical to launch studies (e.g. UK, Eire, Netherlands) Often sometimes specific sectors are addressed (e.g. creative industries in UK, public services in US, KIBS in Finland) R&D policy for services and related initiatives, including “service engineering” (e.g. Germany, US) EU-SPRI Conference Madrid, April 2013
  15. 15. OMIIR Finland features a rich mix In general, there has been learning, but little published evaluation EU-SPRI Conference Madrid, April 2013
  16. 16. Service Innovation in 21st Century Innovation Policy OMIIR • From narrow policies to framework conditions, long term • R&D AND wider innovation support • Technological AND service innovation (broadly taken) • Multidisciplinary and multiprofessional innovation team skills • (KIBS and other intermediaries, open innovation) •Supply AND demand side – new instruments and focal points • User driven AND professional innovation intelligence • Tackling Grand Challenges EU-SPRI Conference Madrid, April 2013
  17. 17. OMIIR End of Presentation EU-SPRI Conference Madrid, April 2013