typologies as service innovation policy tool

8/6/2019 Typologies as service innovation policy tool

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EPISIS

European policies andinstruments to support

service innovation


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Typologies asservice innovation policy tool

ENABLING ROLE OF SERVICE INNOVATION

IN VALUE CREATION

Dr Jari Kuusisto

European Touch Ltd.

Permanent Representation of Finland to the EU05 May 2011

Brussels


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Starting point

Services count for up to 80 % of the economy How to develop effective service innovation policy?

Services share

of the economy in terms ofemployment and GDP

70 80 %


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More effective service innovation policy

Instead of blanket policy covering 80 % of the economy We need targeted policy development and delivery

Systematic policy development

for different types of services

-Industries-Occupations-Businesses-Activities


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The main objective of the work was

To increase and deepen the understanding ofhow tocategorise and typify service

These service categories need to be helpful for serviceinnovation policy development

in identifying right tools, instruments and competences tosupport and encourage innovation in services.


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Introduction

Services and service innovation Involve wide range of heterogeneous actors & activities

To be effective, service innovation policy requires targeting Typologies offer new perspectives to segmenting of

Service business and Innovation in services

Typologies as a basis for practical tool that can assist ServiceInnovation policy development


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Identification &

analysis of16 key service

typologies

Key finding:

Together typologiesprovide a

meaningful way to

segment services

Segmenting of

servicescan help

policy design

and delivery?

Typology

based serviceInnovation

policy design anddevelopment

Policy tool

development,utilizing service

typologies

Service innovation

policy design anddevelopment tool ->

More effective policyand impacts

Phase 1: Analysis of existing service typologies

Phase 2: Policy tool development

Turning academic work to policy tool


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How service typologies work?

From innovation policy point of view: service typologies slice the 80 %of the economy into meaningful segments:

1. It can distinguish categories of services (e.g., different services havedifferent innovation dynamics)

2. It is homogeneous within the category (e.g., it exhibits commoninnovation dynamics);

3. It responds similarly to a policy stimulus, and4. It can be reached by a policy intervention

The above describe an ideal situation and targets worth pursuing even if allfour criteria may not always be fully attainable.

Service categories


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Benefits of typology approach

Typologies can create a basis for improved policy targeting andimpacts by

Highlighting distinct business groups that have different industrystructures, needs and requirements, behaviour and innovation activities

They enable policy focus on areas where the policy impactsare most likely significant Different types of services have different growth potential, export

prospects, employment capabilities and thus have higher or lowerattractiveness

Service innovation policy can be designed for groups with similar policy stimulus needs, behavioural patterns, and innovation activities


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11

Typology based policy development tool

Innovation behavior in service industries Industry based variation in innovation drivers and barriers

Service activities perspective - KISAService activities have important role across the industries

Service process perspectiveVariety of processes and innovations, e.g. high touch vs. high tech services

Other typology inspired policy perspectivesNational priorities Which type of services? Which policy tools?

1.

2.

3.

4.

Improved service innovation policy effectiveness & efficiencyAchieved through systematic design and targeted delivery


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12

Benefits of the reference process

Provides: a) systematic process and b) check list for serviceinnovation policy design

Four clear steps for policy development Each step focuses attention to different set of relevant policy

issues

Policy makers can target and tailor interventions effectively by Type of targeted services (firm, industry, activity, occupation) Nature of the service / service innovation process Identifying typical drivers and barriers to service innovation

Presented tool facilitates European co-operation

Member states with similar priorities and tools for service innovationpromotion can work together effectively


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Thank you!


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Supplementary material

See pages 15-21


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15

Innovation behaviour in service industries

Service innovation characteristics, drivers andbarriers take different characteristics across the

industries

Sectoral innovation characteristics are influenced by Industry characteristics as such, e.g. network services based on

extensive physical infra: rail traffic, telephone networks... Sources of technology, e.g. ICT, bio-pharma.... Type of user, e.g., consumers, b2b, demographic group... Means of appropriation, how ideas & novel properties are evaluated

and adopted

Technological trajectory*, due to institutionalisation of ideas, marketsand professions, industry can get 'stuck' within one trajectory, and unable

to adopt to ideas and innovation from outside

Relative size of firms and its influence on innovation dynamics*Technological trajectory refers to a single branch in the evolution of a technological design of a product/service


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16

Innovation behaviour - policy perspective

Industry characteristics Service innovation policy that is sensitive to specific characteristics

and needs of its target industry

Industry characteristics related issues for policycontent and targeting

What are the key drivers and barriers to innovation? Internal business level issues Industry wide framework conditions Structure of the industry

Aptitude to adopt novel concepts and technologies Key technologies and their characteristics

Customer markets and their readiness to adopt innovative services Barriers and drivers to innovation


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17

Knowledge intensive service activities - KISA

Analysis of knowledge intensive service activitiesand their functions is indicating that

Service activities exist across the industries Statistics cannot easily capture activities / processes Different types of KISA can be distinguished and they have variety

in functions.

Some examples of typical KISA R&D&I activities, management consulting, ICT services Human resource management and employment services, Legal services (including those related to IPR) accounting, financing,

and

Marketing-related service activities.


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18

KISA - policy perspective

Renewal services - a key policy target are directly related to innovation, for instance R&D and strategic

management consulting

Routine services - can provide broad based access to SMEs contribute to improvement of maintenance and management of

various subsystems within organisations, e.g. accounting

Compliance services- regulation based demand, e.g. Eco-innovation help organisations to work within the legal framework and various

other regulatory regimes, e.g. auditing, legal-, and environmentalservices

Network services - links to open innovation and e.g., clusters facilitate communication, knowledge exchange and flexible resource

allocation, e.g. informal personal networks, production- and servicedevelopment networks


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19

Service process characteristics

Service process perspective highlights variety inservice- and service innovation processes

Typologies can be constructed around numerous differentdimensions of service process, e.g.

Customer / technology intensity of service Customer intensive services involve high level of personal interaction

and individual tailoring

Technology intensive services utilize ICT and automation Service processes have different innovation

dynamics and development needs

Organisational- and employee development Utilization of technology User involvement and co-creation etc.


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Typologies and perspectives to services and innovation

Services and

innovation

Service industry

Service process

Customer intensity

Service activity

Services and technology

Micro level focus

Macro level focus

Knowledge intensity

typologies as service innovation policy tool

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