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Innovation in Services - Department for Business, Innovation and Skills

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<strong>Innovation</strong> <strong>in</strong> <strong>Services</strong><br />

Secondly, the survey sought to extend the <strong>in</strong>vestigation of <strong>in</strong>novation beyond<br />

the narrow conf<strong>in</strong>es of ‘product’, ‘process’ <strong>and</strong> ‘delivery’ <strong>in</strong>novations, by<br />

explor<strong>in</strong>g changes to the technologies <strong>and</strong> skills of the organisation, as well as<br />

changes <strong>in</strong> its organisational structure <strong>and</strong> its <strong>in</strong>ter-relations with customers <strong>and</strong><br />

other bus<strong>in</strong>esses. These aspects were <strong>in</strong>cluded because we were <strong>in</strong>terested <strong>in</strong><br />

try<strong>in</strong>g to underst<strong>and</strong> <strong>in</strong>novation (or ‘change’) <strong>in</strong> its wider context, rather than<br />

count<strong>in</strong>g <strong>in</strong>novations <strong>and</strong> compar<strong>in</strong>g <strong>in</strong>novation rates.<br />

INNOVATION AS INVOLVING MULTIPLE, COMPLEMENTARY, CONCURRENT<br />

CHANGES<br />

This section explores the pattern of ‘change’ <strong>in</strong> the firms that responded to the<br />

survey across the four service sectors. As <strong>in</strong>dicated above, it seeks to highlight<br />

the fact that by concentrat<strong>in</strong>g our attention on product, process <strong>and</strong><br />

technological <strong>in</strong>dicators of <strong>in</strong>novation we restrict <strong>and</strong> narrow our view of<br />

<strong>in</strong>novation, which means we not only neglect the soft/organisational side of<br />

<strong>in</strong>novation, but also the <strong>in</strong>ter-relationships between these technological <strong>and</strong><br />

soft/organisational <strong>for</strong>ms of <strong>in</strong>novation.<br />

Figure 2.3 <strong>in</strong>cludes all the dimensions of ‘change’ that the bus<strong>in</strong>esses were<br />

asked about. In each case the firms were asked to <strong>in</strong>dicate the extent to which<br />

these had changed, over the last three years, from ‘changed completely’,<br />

through ‘changed to a significant extent’, <strong>and</strong> ‘changed but only slightly’, to<br />

‘rema<strong>in</strong> unchanged’.<br />

The first four dimensions of change cover what might be considered the<br />

traditional, technological aspects of <strong>in</strong>novation:<br />

● changes to the products or services provided;<br />

● changes to the means of produc<strong>in</strong>g services;<br />

● changes to the means of deliver<strong>in</strong>g services; <strong>and</strong>,<br />

● changes to the technologies used to produce or deliver services.<br />

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