2010 ser inn bman62052 seminar 10 policy

8/9/2019 2010 Ser Inn BMAN62052 Seminar 10 Policy

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IME - Service Innovation - 2010 BMAN62052

MIIR

O

Service Innovation Policy

(and Strategy)

Ian Miles

[email protected] service innovation seminar

10
mailto:[email protected]:[email protected]


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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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O

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/srii


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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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MIIRO Industrial Policy

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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MIIRO Policy Rationales


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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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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.pdf


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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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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

2010 ser inn bman62052 seminar 10 policy

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