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

7 Concluding Comments
Ireland’s services sector economy is growing in importance in both absolute and relevant terms.
Employment and exports from the Irish services sector have significantly outpaced growth in
manufacturing in the last decade while Ireland’s services economy ‘punches well above its weight’ in
global exporting terms. However, there are a number of concerns emerging for the future. These can
be related to the relatively poor levels of innovation activity in the services economy as a whole, with
consequent impact for the long term productivity of this growing part of the Irish economy.
Few countries to date have begun to consider policies and programmes for promoting service
innovation, although the OECD published the results of a major services innovation study in March
2006. This means that pioneering countries such as Ireland cannot copy existing policies but need to
develop truly innovative policies. Ireland has an excellent opportunity to position itself as a world
leader in the area of services innovation policy although the ‘window of opportunity’ is undoubtedly
narrowing. Ireland has already made considerable impact, both internally and externally, from its
policy in favour of internationally traded service sectors. In this respect it is well placed to be at the
forefront of future global policy developments in this area.
Policymakers in Ireland must continue to demonstrate their commitment to an important economic
sector that, across the OECD economies, has to date been minimally sustained by traditional
innovation policy support.
Advanced economies such as Ireland’s require new thinking on the economic and business models
that have traditionally underpinned success. On innovation, the policy and supports favouring services
innovation need to be cognisant of, and matched to, the new models.
For example, while the future competitiveness of the Irish economy will clearly continue to rely to a
large extent upon its successful Internationally Traded Services sector, it needs to continue to innovate
in the services it offers its global customers. Ireland’s development agencies need to consider whether
they can deliver appropriate and effective services innovation support to Irish companies using a
support framework and portfolio that relies substantially on a relatively narrow technological concept
of innovation.
The innovation support that is made available for innovation generally in Ireland is comprehensive
and vital. This Study suggests, however, that it may not be as efficient or effective in addressing the
specific character and challenges associated with services innovation generally.
The supports available and offered to services businesses for their innovation activities by the
economic development agencies in Ireland may need to be re-thought and realigned in order to
continue to be relevant and effective. Novel thinking and renewed policy and support approaches
may now be necessary.
The Study reveals that service companies in Ireland are evolving and innovating on a constant basis.
The conceptual framework used in this Study demonstrates a rich pattern of innovation activity
in relation to business models, customer interfaces and new services. In addition, Ireland’s leading
companies in the Internationally Traded Services sector are already exploiting services innovation to
increase their competitive advantage.
Services companies in Ireland need to increase their innovation efforts and emphasise the importance
to them of non-technological innovation through the development of new business models,
customer-interfaces and service-products. In particular these companies need to be willing to be
‘showcased’ in Ireland in order to convince less innovative services companies of the value of services
innovation to company performance and competitiveness.
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