Post on 30-May-2018
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Service Innovation Policy
(and Strategy)
Ian Miles
Ian.Miles@mbs.ac.ukIME service innovation seminar
10
mailto:Ian.Miles@mbs.ac.ukmailto:Ian.Miles@mbs.ac.uk8/9/2019 2010 Ser Inn BMAN62052 Seminar 10 Policy
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O Contents
Lobbying Policymakers and Educators
SSME, SRII, etc
Why?
Why Services Policy?
Why Innovation Policy?
Why innovation policy for services?
What?What policy instruments?
Who can design and implement these? What do
we know? Who is doing what?
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O Major Industry Buzz!
Especially IT industry promoting
notion of service science
Other important action around
service quality and service marketing
rise of SDL
http://www.sdlogic.net/
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O
and Service Engineering
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IBM -SSME
At:; http://www-
304.ibm.com/jct01005c/university/
scholars/skills/ss
me/index.html
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OService Research and
Innovation Initiative
At:; http://forums.thesrii.org/srii
http://forums.thesrii.org/sriihttp://forums.thesrii.org/srii8/9/2019 2010 Ser Inn BMAN62052 Seminar 10 Policy
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Industry impacts onpolicy
Policymakers respond to industrial
concerns
Plus, much of public sector is about
services, and in these sectors there aremany innovation initiatives (though
these may be labelled efficiency,
modernisation, or otherwise)
l S
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http://www.institute.nhs.uk/
Example NHSinnovation
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MckInsey 2010
erv ce n us r aPolicy?
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Sector-neutral?
Prioritise manufacturing?
Prioritise high-tech (innovative?
Value-added?)Other key sectors?
Critique of 1970s industrial policy picking winners, protectionism
Innovation policy - precompetitive
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General arguments forinnovation policy
Should apply to services, if these arenot discounted as non-innovative(which does seem to have been the
case historically)Market failure, system failure
Important for competitiveness, bothdirectly and as business servicessupporting business in general
Important for QOL, esp. non-marketservices
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Specific serviceinnovation policy?
We know that some features of
service innovation are distinctive
e.g. R&D less common
Are services worse integrated into
innovation systems?
Are services overlooked in policy
programme formulation and
implementation?
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Some reviews andexplication of arguments:
EC Expert group Fostering Innovation
in Services and various commentaries
Louis Rubalcaba papers, eg Which
policy for innovation in services? Scienceand Public Policy 2006
RISE project
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Policy Areas (Kuusisto,2008)
Supply-side, demand-side, bridging policies; source:
http://www.servicesaustralia.org.au/pdfFilesResearch/TowardsHighPePolicy.pdf
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MIIRO R&D and services
Smaller firms: generally do less R&D.
Even accounting for this, most
services report lower R&D than most
equivalent manufacturers
Most R&D programmes not service-
targeted
But still, incentives via tax credits for
R&D. etc.?
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TheOfficial UK
R&DSurvey
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Small printDefinition of Research and Development
R&D is a difficult concept to measure. We have attempted below to providesome basic guidelines to follow. In some cases you may need to apply anelement of judgement when compiling your figures. We acceptapproximations. R&D is defined as Creative work undertaken on asystematic basis in order to increase the stock of knowledge,including the knowledge of man, culture and society, and the use ofthis stock of knowledge to devise new applications.
The guiding line to distinguish research and development activity (R&D)from non-research activity is the presence or absence of an appreciableelement of novelty or innovation. If the activity departs from routine andbreaks new ground it should be included; if it follows an established patternit should be excluded.
The guidance in this note is based on the internationally agreed standard
established by the OECD and published in what is known as theFrascati manual. A summary of the latest edition is available from theONS.
.
Other steers in definitions of employment: prof S&T,technicians
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Small print continued..Definition of Research and Development
Exclude such activities as:a.Routine testing and analysis of all kinds, whether for control of materials,components or products, and whether for control of quantity or quality.(Testing and analysis as part of an R&D programme should be included.)
b. Market research, operational research, work study, cost analysis,management science, surveying, trouble-shooting.
c. Royalties payments for the use of the results of research anddevelopment unless required as an essential part of the research anddevelopment programme within the unit.
d. Trial production runs where the primary objective is not furtherimprovement of the product.
e. Design costs to meet changes of fashion and artistic design work.
f. Legal and administrative work in connection with patent applications,records and litigation; work involved in the sale of patents and licensingarrangements; experimental work performed solely for the purpose of patentlitigation.
Other steers in definitions of employment: prof S&T,technicians
now ng ow
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now ng ow,Knowing Whom: AStudy of the Links
between theKnowledge IntensiveServices Sector and
The Science Base
IoIRreport to Council for Science and
Technology
June 2003http://www.cst.gov.uk/cst/reports/files/knowledge-intensive-services/services-study.pdf
http://www.cst.gov.uk/cst/reports/files/knowledge-intensive-services/services-study.pdfhttp://www.cst.gov.uk/cst/reports/files/knowledge-intensive-services/services-study.pdf8/9/2019 2010 Ser Inn BMAN62052 Seminar 10 Policy
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
I
Most services less prone to use
Universities, government
Many services more prone to use private
sources of inf esp consultants.
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Technical services -
high levels of
collaboration
Collaboration with
Universities uncommon -
throughout industry;
most contact with
manufacturing in general;
5% services, 9%
manufacturers;
But evidence that dynamic
innovators collaborate more.
Collaboration
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MIIRO Interviews with KIS Firms
Environmental Services
Business Continuity Services
Long-term Personal InsuranceMarket Research / Marketing
- Innovation important, rarely formalised
- Different sorts of knowledge required forbusiness practice and innovation
- Huge differences small/large firms
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Much variation, but most frequentaccount is that graduates are valued
as source of general skills, specialist
skills are sometimes but not oftensought
Large firms more likely to be strategic
in recruitmentSome KIS have elaborate
professional development systems
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Information, Expertiseand Collaboration
Small firms have few links in general
Linkages often ad hoc
Search for right sort of people
Collaboration rare, some prominent exceptionsLittle awareness of support for collaborative
research
Important sectoral differences in assessment ofknowledge base
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Rarely any specific strategies for KIS, someare recognised as having high potential.
Scope for more development.
Variations across Universities and KISImportant role of Centres and Programmes
Some apparent linkages are not used for
knowledge transfer
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Lack of absorptive capacity on bothsides
Centres of excellence and other
intermediaries provide compasspoints, accumulated knowledge,
know-who, translation capabilities
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MIIRO PolicyBetter measurement (sampling, surveys) - not
to reach targets faster but to inform policy
Better targeting of mainstream R&D and
innovation programmes to engage services
beyond the usual suspects
some re-engineering of innovation systems
awareness and promotion (incl. somebenchmarking with service examples, etc.)
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MIIRO PolicyBetter measurement - not to reach targets faster but
to inform policy
Better targeting of mainstream R&D and innovation
programmes to engage servicesServices-oriented R&D and innovation programmes
from science and industrial policy angles (draw on examples of good
practice)
relate to ongoing initiatives where usefulsupport for new generations of innovation management
...
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Interventions maypromote change:
Generally services neglected in innovation andR&D policy - but there is now some R&D policyfor services and R&D-relevant initiatives
Initiatives like IBMs service science, NSFservice engineering
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SIID, and more recently IPPS
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Some have established service innovation (Finland), R&D(Germany, Canada), engineering (USA) programmes
U.S. Congress - National Innovation Act - add Fostering theField of Service Science to studies conducted by the NationalScience Foundation
Some countries have instigated projects to explore prospects
(UK, Eire)Also international bodies (EC) the EU has identified serviceand non-technological innovation as one of nine strategic
priorities of its innovation strategy; funding programs to createa policy framework and establish knowledge platforms
Japans New Economic Growth Strategy - six key service
areas forservice policy initiatives funding for advancedbusiness models in health and welfare, childcare, tourism,business support services and distribution services.
Much interest action very patchy
Some more detail
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MIIRO Finland - TEKES euro100m over 5y; TEKES pays 50%
Mainly B2B
IPPS funded from this to explore policies
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R&D Policy Initiatives e.g.BMBF
German Initiatives
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German Initiatives -BMBF
G I iti ti
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German Initiatives -BMBF
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GermanInitiatives -BMBF
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Changing InnovationPolicy?
Kuusisto 2008
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End of Presentation