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

6.1.2 Innovation in Irish Services
Statistical evidence from the CIS suggests that higher levels of innovation are found in manufacturing,
compared to the services sector (Annex 6). The case studies of services innovation in Ireland do not,
however, paint a picture of a laggard sector; indeed they suggest that that service companies in
Ireland are evolving and innovating on a constant basis, in each of the different sectors examined.
With the possible exception of IT-based service sectors, services innovation in the Irish sectors studied
does not necessarily follow traditional innovation metrics such as R&D, but rather through the
conceptual framework used in this Study, demonstrate a rich pattern of innovation activity in relation
to business models, customer interfaces and new services (Chapter 4).
The company case studies suggest that relatively few companies utilise a fast track approach,
which is viewed as overly risky, instead preferring a combined approach built on systematic service
development, complemented by more incremental changes once implemented.
The case studies also indicate that companies felt that the public agencies had a valid role in seeking
to support their service innovation efforts. Some of the larger company case studies did, however,
suggest that agencies are thought not to be well placed to understand and support specialised
internal service processes. Support for such companies was felt to be best positioned in relation to
either financial supports for innovation activities and structures or advice. However indirect supports
such as networks are equally valued, creating a supportive and conducive environment.
6.1.3 Irish Policy in the Area of Services Innovation
It is clear that innovation is a key priority for the achievement of future economic growth in Ireland.
Recent policy debate in Ireland has considered the challenges posed by a service-based economy.
While the innovation agendas set out in policy documents such as the NDP are largely technology
based, some priorities, particularly those associated with enterprise, provide the basis for support to
other, non technological, dimensions of services innovation. Consequently, at issue is whether this
support is sufficiently explicit and co-ordinated to deliver a robust response to this important area of
innovation (Chapter 5).
The key agencies have sought to respond to the challenge of services innovation but generally
implicitly and with an essentially technologically based approach. One of the potential weaknesses of
this approach to services innovation is that the development of new services may receive less support
than the development of new manufacturing products.
As the role of services innovations arising from service sectors (or related manufacturing sectors)
become increasingly important in the transition to a knowledge economy, the issue is whether more
will need to be done, and more explicitly stated, to broaden the concept of innovation in order for
support to remain relevant to the rapidly changing needs of companies in Ireland.
A particular challenge will be the design of services innovation policies that adequately take account
of the heterogeneous policy requirements of different services sectors, as illustrated in this Study.
6.2 The Rationale for a Services Innovation Policy
There are a number of important factors arising from the Study that need to be taken into account
when determining the policy approach that needs to be taken.
The scale of the challenge faced by countries in adjusting to the rapidly emerging knowledge based
economy is one that Ireland will need to address, thereby acknowledging that services innovation
is distinct and different to the types of innovation that are prevalent in manufacturing and process
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