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Cover -- Half Title -- Series -- Title -- Copyright -- Dedication -- Contents -- List of illustrations -- List of abbreviations -- 1 What is service? -- 2 What is innovation? -- 3 Innovation in service -- 4 Service innovation performance -- 5 The future of service innovation -- Index.

The world is being shaped by service. All the world's most advanced economies are dominated by service, with many countries having more than 70 percent of their gross domestic product (GDP) generated by it. The service sector also employs the largest number of people and it is the fastest growing sector, both in number of companies and employees. The questions posed in this book are: (1) How is the service sector growing; (2) what is service innovation; (3) what are the drivers of service innovation; and (4) how can organizations innovate service in a structured way? The book views service as the value creating activity that customers perform in their own context: The role of a company is to provide the resources and knowledge to enable value creation. Based on this view, we develop a model of service innovation. Service innovation is a multifaceted concept dependent on the purpose of the innovation. These purposes could be to: differentiate, finance, help, experience, and streamline the process or offering. In turn, these result in: brand innovation, business model innovation, social innovation, experience innovation, process innovation, and behavioral innovation, respectively. In this book, we develop guidelines for what is required from the organizational perspective, how should an organization view its customers in order to be successful, what does a service development process look like, and how to transform an organization that is goods-centric to become service or solution provider. Despite the heightened focus on service in many business sectors, most models and theories of innovation are based on a goods perspective, assuming that the norm is a physical good. We believe that the norm is actually experiential and service based. This book addresses this mismatch of theory and practice for the benefit of those who are seeking to understand, teach, and practice service innovation.

This paper covers service innovation for service scientists. The subject has not been accorded the attention it deserves, because of inadequate professional and academic attention to services, in general, and service design, in particular. The changing of one's perception of the human landscape from products to services is indeed cumbersome and entails a lot of effort on the part of the service establishment and the service entrepreneur. However, a new view of an age-old agenda in light of the ongoing move to globalization can be enlightening and rewarding. If Thomas Edison were engaged in services, he would have put it this way, "Service innovation is 90% perspiration and 10% inspiration." Heretofore, innovation has been unfortunately aligned with the business community that has been distracted by an outdated and simplistic view of competitive advantage based on comparative economics. Effective service innovation is based on differential economics through service delivery that supplies better services as seen by the customer. Service innovation applies equally well, if not more so, to the other human endeavors of engineering, government, education, social services, political science, and a wide-range of unclassified interpersonal relations. The paper gives a modern view of service, innovation, service innovation, and how to unearth services innovation in a practical sense. Also, the point is made herein that service innovation is basic to the constituency of the human condition.

"Social innovation and service innovation issues have developed separately over the last two decades, with too rare intersections between them. Both issues share many points in common, however, and sometimes even describe the same socio-economic reality. This contribution aims to help establish dialogue between these two still marginal but promising fields of economic theory and the social sciences in general. It briefly describes each of these two fields, puts them into perspective, and examines the links between them in a number of different ways." (author's abstract)

This paper examines the evidence on service innovation using the 2012 Census of Philippine Business and Industry and the 2009 Pilot Survey of Innovation Activities. It reveals the wide variation in R and D intensities and differences in innovation behavior between the manufacturing and services sectors, for example, with respect to information sources and innovation activities. Many similarities were also detected in terms of service product innovation, the popularity of organizational innovation, and the preference for training activities, among others. Looking at structural factors, the probit regression analyses indicate that the size of the firm is a good determinant for all types of innovation. Ownership and age were also significant for certain innovation outputs, which could help inform policies on foreign direct investment and entrepreneurship. The results of this paper reveal the importance of service innovation not only for the services sector but also for the manufacturing sector consistent with servicification. In general, different types of innovation are undertaken by industries for various reasons, and the technological and nontechnological forms of innovation complement each other. If the government aims to promote economy-wide upgrading, support for innovation should not favor only one type of innovation output or activity. Further research on innovation behavior to cover more industries will be useful in developing a comprehensive and more nuanced approach to innovation policy.

VTT Tiedotteita - Research Notes 2552 ; The importance of user orientation in innovation activities is nowadays emphasized not only in business life but also in political and societal discussions. In today's competed and changing market situations, one promising way to support market success are innovations originating from the needs of the customers. The traditional division to product-oriented and service-oriented business is blurring as traditional products are equipped with service elements that bring additional value to customers. Service orientation in business changes the connection to the customers: it is not enough to be able to sell the product to the customer once but the service customer has to be kept satisfied every day. Service providers need to know their customers better and to offer them better possibilities to be involved in service development. In this report we present a review of the current state of the art in user involvement in service innovations. The review is based on three different research viewpoints: marketing and business research, human-centred design and media research. In each of these research fields we can see a similar trend of changing the attitude towards users; from passive research object to an active design partner, potential resource and co-producer. The transition from product design to service design requires that design and usage should be more firmly connected - the design does not end when the service is launched but the design continues in use where the users are creating content for the service. The users shape usage practises in actual use and this may indicate needs to refine the service. That is why service providers should have good channels to monitor the users and to listen to their ideas and feedback. In addition to user involvement in the actual design process and during use, users should increasingly be involved also in early innovation phases, in ideating what kinds of services should be designed for them and with them. Different users can give different contributions to service innovation and their motivations and preferred ways to participate vary. Different roles in the innovation process should be available to user groups such as lead users, ordinary users, advanced users, critical users and non-users. User communities are increasingly important sources of innovations, either existing communities or new communities that are grown around the service. Customer interaction may shorten the development cycle and improve the quality of innovations. Successful user involvement, however, requires that the organisation has methods and processes to gather and analyse user data as well as to integrate user data in the design process. User involvement is especially useful in the early stages of service development processes due to their high uncertainty and low formalisation. Direct user-designer interaction helps in transferring user feedback and ideas to service innovations. Designers' direct interaction with users is also beneficial as it seems to change designers' mindset smoothly from technical features to user experience, thus boosting better designs. User experience of the service is improved when users themselves can contribute to developing the service.

Acknowledgement -- Contents -- Bios of Authors -- List of Figures -- List of Tables -- Chapter 1: Public Service Innovations in China: An Introduction -- Understanding Innovation in Public Services -- The Nature of Innovation -- The Source of Innovation -- Basics of PSIs in China -- What Are PSIs in China? -- Who Are the Innovators? -- Why PSI? -- How Effective Are PSIs? -- Government Officials' Perceptions of PSIs: The Case of Shanghai -- General Attitudes -- Decision and Implementation -- Effects -- Influence on Civil Servants -- Success Factors -- The New Normal and PSIs -- Legitimacy Regeneration -- Policy Transformation -- Growth Mechanisms -- Balanced Learning -- Civil Service Reform -- Innovation Culture -- Public Sector Modernization -- Resource Constraints -- Inter-Organizational, Inter-Jurisdictional, and Inter-Sectoral Coordination -- Preference of Officials -- Capacity to Innovate -- Innovation Incentives -- A Road Map of the Book -- References -- Chapter 2: China's Local Government Innovations in Inter-Local Collaboration -- Introduction -- The Motivations for Innovations in Inter-Local Collaboration in China -- Government Decentralization -- Resource Complementarity -- Environmental Sustainability -- Inter-Local Collaboration in China -- Institutional Collective Action Framework -- Institutional Collective Action Framework in China -- The Beijing-Tianjin-Hebei Metropolitan Region -- The Pearl River Delta Region -- The Chengdu Plain -- The Yangtze River Delta -- A Case Study of Formal Collaborative Innovation -- Formal Agreement Case: Environmental Protection Integration Plan of the Pearl River Delta (2009-2020) -- Environmental Issues and Problems in the Pearl River Delta -- Institutional Innovation and Green Market Establishment -- Collaboration with Hong Kong and Macau -- Case Studies of Informal Collaborative Innovations

Purpose– The purpose of this paper is to introduce a special issue on entrepreneurship and service innovation, and to conceptualize the link between entrepreneurial orientation, innovation and entrepreneurship or new entry.Design/methodology/approach– Analysis of secondary data.Findings– Entrepreneurial orientation (EO), innovation (IN) and entrepreneurship are in a vital "triadic connect", where EO supports innovation in organizations and innovation promotes new entry or new venture creation – a vehicle for commercialization of innovations.Research limitations/implications– There is a need for empirical validation of the linkages proposed in this conceptual paper.Practical implications– This "triadic connect" between EO, IN and entrepreneurship or new entry is a source of or key driver of organizational performance (OP) and competitive advantage (CA).Originality/value– The theorization and schematization of the "triadic connect" (i.e. EO–IN–NE link) and outcomes (namely, OP and CA) is presented.