Innovation in Services - Department for Business, Innovation and Skills

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Contents Foreword iii 1. Introduction 1 2. Changing understanding of innovation in services 21 Bruce Tether and Jeremy Howells 3. Managing service innovation 61 John Bessant and Andrew Davies 4. Innovation in Experiential Services – An Empirical View 97 Chris Voss and Leonieke Zomerdijk 5. Services and the Innovation Infrastructure 135 Bruce Tether and Silvia Massini i
Foreword This series of papers brings together emerging evidence and thinking on services innovation in the UK. Innovation is one of the five drivers of productivity growth alongside skills, investment, enterprise and competition. The findings of these studies will contribute to help ensure the DTI and the Government has a robust evidence base to inform innovation policy, in line with the DTI’s remit to ‘create the conditions for business success and help the UK respond to the challenge of globalisation’. Research conducted for this report emphasises the importance of nontechnological innovation in the economy. One of the findings is that the full utilisation of technology often requires firms to use it in an innovative way and this is often accompanied by changes in the skill mix and organisational changes. Knowledge of the customer, i.e. the ‘demand side’ of the equation is particularly important as many services are simultaneously created and consumed at the same time. In some instances, co-ordination across several organisations is necessary to facilitate innovation, for example, in making better use of airport runway space. This project also highlights several well-known areas of importance for innovation policy such as the diffusion and adoption of technologies. The findings are relevant to thinking about innovation throughout the economy. Increasingly, firms do not consider themselves to be ‘services’ or ‘manufacturing’ but providing solutions for customers that involve a combination of products and services. Improving understanding of services innovation complements the better-established knowledge of manufacturing innovation. I believe the evidence gathered in this collection of studies will contribute to a greater understanding of innovation for policy purposes. In addition to ongoing work at the DTI and in the research community, the Technology Strategy Board 1 is running a series of workshops in particular service sectors covering financial services, retail and logistics, design services, the services “wrap around” manufacturing and environmental services. Vicky Pryce Chief Economic Adviser and Director General, Economics Department of Trade and Industry 1 See http://www.dti.gov.uk/innovation/technologystrategy/tsb/ iii
Page 1 and 2: DTI OCCASIONAL PAPER NO. 9 Innovati
Page 3: The views expressed within DTI Econ
Page 7 and 8: Innovation in Services ● Chapter
Page 9 and 10: Innovation in Services Figure 1.1:
Page 11 and 12: Innovation in Services ● Airport
Page 13 and 14: Innovation in Services In trying to
Page 15 and 16: Innovation in Services BOX 1.1: DEF
Page 17 and 18: Innovation in Services Another impo
Page 19 and 20: Innovation in Services ● Customer
Page 21 and 22: Innovation in Services The OECD (20
Page 23 and 24: Innovation in Services From a polic
Page 25 and 26: 2 Changing Understanding of Innovat
Page 27 and 28: Changing Understanding of Innovatio
Page 29 and 30: 2.2 The Changing Understanding of I
Page 31 and 32: ASSIMILATION (OR ‘SUBORDINATION S
Page 37 and 38: Table 2.1: Various Modes or Pattern
Page 39 and 40: The growing consensus that is captu
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Changing Understanding of Innovatio
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References Changing Understanding o
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3 Managing service innovation John
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● Does the generic innovation pro
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Managing service innovation In the
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Figure 3.1: The Innovation Space PR
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3.3 Innovation management in servic
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In this section we will look at the
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Table 3.3: Stages in the innovation
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Figure 3.4: Interactive innovation
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While these taxonomies begin to hel
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of product and process life cycle s
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Managing service innovation In high
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Managing service innovation abandon
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Managing service innovation While C
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Managing service innovation Table 3
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Similarly research carried out by t
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This trend has important implicatio
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References Managing service innovat
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Managing service innovation Tidd, J
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Innovation in Services Another find
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Innovation in Services The remainde
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Innovation in Services 4.2 The Cont
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Innovation in Services BOX 4.1: SER
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Innovation in Services emotions and
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Innovation in Services Research sho
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Innovation in Services deliberately
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Innovation in Services 4.3 The Proc
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Innovation in Services to put in th
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Innovation in Services TOOLS AND TE
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Innovation in Services who are actu
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Innovation in Services was fed back
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Innovation in Services BOX 4.4: BUS
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Innovation in Services PROTECTING I
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Innovation in Services Seeing a con
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Innovation in Services disruptive i
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Innovation in Services Eisenhardt,
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Innovation in Services Vermeulen, P
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Innovation in Services Table A4.1:
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Innovation in Services in general s
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Innovation in Services If IP protec
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Innovation in Services INFORMATION
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Innovation in Services or knowledge
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Innovation in Services In the figur
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Innovation in Services The second t
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Innovation in Services Table 5.5: I
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Innovation in Services Figure 5.4:
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Innovation in Services Correlations
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Innovation in Services In relation
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Innovation in Services Table 5..10:
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Innovation in Services especially t
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Innovation in Services IBM is now u
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Innovation in Services Table 5.12:
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Innovation in Services Figure 5.19
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Innovation in Services Correlations
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Innovation in Services FURTHER QUES
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Innovation in Services By contrast,
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Innovation in Services 5.4 Linking
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Innovation in Services 5.5 Conclusi
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Innovation in Services acquired R&D
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Innovation in Services References C
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Innovation in Services Variables us
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Innovation in Services Sector Compe
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