Services Innovation in Ireland - Options for ... - Europe INNOVA

In the case of RFID technologies common in the logistics sector the case studies from the Irish SCM-
logistics sector suggests that this technology is allowing companies such as UPS to sell new services
based on tracking. However, the origins of the technology in the US had actually preceded market
demand to a certain extent. Such forms of innovation are particularly powerful in that they open up
the possibility of new markets.
One example of this phenomenon, albeit on a small scale was noted in the IT software sector where
developments in the product were said to proceed at a faster pace than customers’ expressed needs,
requiring a degree of selling of the service to the customer.
Other drivers of service innovation noted in the case studies were regulations. The primary view here
was that changes in this area, although not always welcomed, do cause companies to react in an
innovative manner. Examples cited by case study companies include the role of the Irish Language
Act in opening up possibilities for translation services, and airline security requirements providing the
basis for new staff training courses in relation to shipping air freight.
Regulations can, however, also represent barriers to innovation. In the education traded services
sector for example, innovation in course content was felt to be an increasingly vital part of meeting
the needs of enterprises and society. One educational establishment, for example, pointed out
that the requirements associated with validating courses had the potential to limit changes made
necessary in fast moving technological sectors or courses such as IT.
Finally, a number of specific barriers were noted during the course of the case studies. The main
theme to emerge from the case studies was one of limited resources and working capital for
innovative projects. Other barriers were identified but no particularly strong themes emerged. These
barriers are set out below, however, to give a flavour of potential barriers to services innovation:
• Psychological barriers such as those that derive from inertia, or winning a big project – stretching
resources and limiting time for more innovative service development thinking.
• Limiting work practices can potentially slow down innovative workforce-based strategies for
services innovation.
• Finding reputable partners in overseas locations.
4.5 Use of Business Support by Case Study Companies
The case studies revealed wide ranging use of business support mechanisms 73 . Of those companies
that were clients of either IDA Ireland or Enterprise Ireland a relatively high level of satisfaction with
supports for innovation was evident. Indeed, in several cases companies had availed themselves of a
wide range of supports. Examples of ‘innovation programmes’ noted in this respect include:
• Feasibility Studies.
• RTI Grants.
• Innovation Partnerships.
• High Potential Start Ups (HPSU).
• European Framework Programmes.
The case studies further revealed that where companies are using these supports they are being
used for projects with a relatively high level of technological content, for example, development of
new software products. However there were examples where companies were making use of ‘non
technological’ supports in areas such as overseas marketing support and HRD support.
73 This, in part, derived from the fact that the companies were largely identified by public sector agencies.
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