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

The conceptual research, as outlined in Chapter 2, indicates
that the traditional models of innovation do not provide
a sufficient basis for understanding the complexity and
distinctiveness of services innovation. In addressing the
limitations of existing models of innovation, the Study has
set out a typology of innovations based around three
dominant types: new business models, new customer
interfaces, and new services. These types of services
innovation do not exclude technological changes or
adaptations indeed, research suggests that technological
development represents an important enabler of the services
innovation types.
Companies adopt a number of approaches towards services
innovation, including: fast-track; systematic and incremental. These models provide a wider range
of approaches to innovation than is typically found in the manufacturing sector which has largely
concentrated on more systematic, staged-based approaches linked to technical R&D.
6.1.1 Lessons from the Global Sectors and International ‘Hot Spots’
The conceptual framework outlined in Chapter 2 provides the basic building blocks for the
understanding of Irish services innovation validated against internationally important services sectors
and a number of service innovation hotspots. The findings from the international comparators,
while not providing conclusive evidence on specific services innovation policies, suggest important
preconditions or implicit factors for dynamic concentrations such as those that could benefit Ireland
(see Chapter 3 for an overview of these preconditions, and Annex 5 for detailed case studies).
A number of important ‘environmental’ conditions seem to provide an important basis for the success
of such hotspots. In particular, the following factors were identified:
Critical Mass of Companies, Suppliers, Customers
Clusters, concentration or milieu will tend to increase and support services innovation,
providing strong competition for customers, staff and access to regulators. Concentrations are
also a strong magnet to attract other ‘downstream’ suppliers that will act as enablers and stimulators
for services innovation. In some clusters, competitive impulses exist alongside collaboration and
creative individuals.
Innovation and Knowledge Resources
The existence of a strong and supportive educational infrastructure will also tend to favour a
concentration of services innovation. This infrastructure needs to work at a number of levels including
universities but also vocational colleges and private centres of expertise and research.
Public Policy
The ‘hot spots’ studied in Chapter 3 suggest that, as a minimum, public policy needs to be clear
and transparent and demonstrate that the sector is valued and that innovation in the services is
encouraged. Therefore while the evidence suggests that implicit policy may, in certain conditions, be
sufficient to create a conducive environment for services innovation, an explicit public policy in favour
of services innovation would seem to be clearly desirable.
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New
business
models
New
customer
interfaces
TYPOLOGY
OF SERVICES
INNOVATION
New
services
products