Using a cutting-edge structure, where a current description of the service sector and up-to-date case studies are compared and contrasted with innovative activity in manufacturing, this book contributes towards a better theoretical understanding of innovation in the U.S. service sector. The U.S. service sector is the largest sector in the U.S. economy and accounts for an increasingly significant share of U.S. gross domestic product, currently 68 percent. Both in the United States, as well as in other industrialized nations, the service sector is a dynamic component of economic activity and growth. As pervasive and economically important as the service sector is, innovative activity in service-sector firms remains somewhat of an enigma; it is not well understood and not well defined because it differs dramatically from the traditional model of innovation in manufacturing. Innovation in the U.S. Service Sector fills this void, placing emphasis on the United States, but with global relevance. It is essential reading for all students of business and management, economics and political science.

This publication presents a collection of contributions by experts involved in the UNECE work on innovation and competitiveness policies carried out under the UNECE Committee on Economic Cooperation and Integration (CECI). It addresses a wide range of issues related to the promotion of innovation in the services sectors, as well as policy lessons learned in this area drawing on the experiences of different countries. Countries are at different stages in the conceptualisation and implementation of relevant strategies. Overall, there is a need to further develop the understanding of innovation in services and increase policy awareness of the importance of innovation in the services sector. This creates significant scope for policy learning and the exchange of experiences through international multilateral initiatives.

Manufacturing-led development has provided the traditional model for creating jobs and prosperity. But in the past three decades the conventional pattern of structural transformation has changed, with the services sector growing faster than the manufacturing sector. This raises critical questions about the ability of developing economies to close productivity gaps with advanced economies and to create good jobs for more people. At Your Service? The Promise of Services-Led Development (www.worldbank.org/services-led-development) assesses the scope of a services-driven development model and policy directions that can maximize the model’s potential.

A frequent complaint in literature is that services have been previously largely overlooked by innovation researchers and technology policy makers. Given the unarguable growth in the importance of the service sectors, increasing numbers of researchers and policy makers have taken a fresh look at service activities. Innovation Systems in the Service Economy: Measurement and Case Study Analysis presents contributions which increase the understanding of the role of services in the development of the division of labor in modern economics. This volume is devoted to the elaboration and understanding of the following two themes. First, service firms can be innovative in their own right, even though the process of innovation and the kinds of innovation may be different from those traditionally associated with manufacturing and other primary activities. Second, service firms and associated activities play an important role in the evolving division of creative labor which is constituted by modern innovative systems.

This is a timely and important contribution on innovation processes within the public sector. Departing from the myth of private equal to entrepreneurial, public equal to bureaucratic paralysis , it offers precious insights into public sector learning, entrepreneurship, of course inertias, and also the trade-offs involved in different management philosophies and performance evaluation methods. It is a rare example of political economy done right . Giovanni Dosi, Sant Anna School of Advanced Studies, Pisa Innovation and entrepreneurship have become the cornerstones for economic growth, jobs and competitiveness in the global economy. However, the burden for generating an innovative economy has fallen on the private sector. Scholars have been remarkably taciturn concerning the role for innovation and entrepreneurship in the public sector has remained strikingly invisible. No more. In Innovation in Public Sector Services, the authors assemble a team of leading international scholars in a path breaking study to identify the potential for the public sector in contributing to innovation and entrepreneurship. In particular, the volume introduces an insightful new analytical framework that lays the foundations for transforming a sleepy public sector into a dynamic, innovative and highly effective partner for leadership and change in the global era. Scholars, policy makers and business leaders who think that the public sector is condemned to being a hindrance to innovation and entrepreneurship rather than a leader championing change and competitiveness in a global economy would be well advised to read this important new book. David B. Audretsch, Indiana University, Bloomington, US and WHU, Germany This groundbreaking book provides new key insights and opens up an important research agenda. The book develops a new taxonomy of the different types of innovation found in public sector services, and investigates the key features and drivers of public sector entrepreneurship. The book contains new statistical studies and a set of six international case studies in health and social services. The research shows that public sector organisations are important innovators in their own right. Economic growth and social development depend on efficient public sector organisations that deliver high quality services, are effectively organised, and have excellent interactions with the private sector, NGOs and citizens. Public sector innovation is complex, invariably involving changes in services, organisational structures, and managerial practices. Essential to successful innovation are the policy entrepreneurs and service entrepreneurs who develop, organise and manage new innovations. This book provides key lessons for these public sector entrepreneurs. Innovation in Public Sector Services fills a fundamental gap; explaining the dynamics of innovation and entrepreneurship in public sector services and is of great importance for researchers, academics and students interested in innovation, entrepreneurship and strategy management. It provides a stimulating read for anyone working or interested in health and social services.

The father of "open innovation" is back with his most significant book yet. Henry Chesbrough’s acclaimed book Open Innovation described a new paradigm for management in the 21st century. Open Services Innovation offers a new approach that demonstrates how open innovation combined with a services approach to business is an effective and powerful way to grow and compete in our increasingly services-driven economy. Chesbrough shows how companies in any industry can make the critical shift from product- to service-centric thinking, from closed to open innovation where co-creating with customers enables sustainable business models that drive continuous value creation for customers. He maps out a strategic approach and proven framework that any individual, business unit, company, or industry can put to work for renewed growth and profits. The book includes guidance and compelling examples for small and large companies, services businesses, and emerging economies, as well as a path forward for the innovation industry. "Whether you are managing a product or a service, your business needs to become more open and more inclusive in order to be more innovative. Open Services Innovation will be an invaluable guide to intrepid managers who commit to making that journey." —GARY HAMEL, visiting professor, London Business School; director, Management Lab; and author, The Future of Management "I tore out page after page to share with my leaders. Chesbrough has pioneered an entire rethink of business innovation that’s rich in concept, deeply explained, with tools ready to use in every industry." —SCOTT COOK, founder and chairman of the executive committee, Intuit "Focusing on core competence often tempts managers to keep continuing what succeeded in the past. A far more important question is what capabilities are critical in the future, and Chesbrough shows how to ask and answer these issues." —CLAYTON CHRISTENSEN, Robert & Jane Cizik Professor of Business Administration, Harvard Business School, and author, The Innovator's Dilemma "To thrive, businesses will need to master the lessons of open service innovation. Here is their one-stop guidebook with important lessons clearly and compellingly presented." —JAMES C. SPOHRER, director, IBM University Programs World-Wide "Open Innovation pioneer Henry Chesbrough breaks new ground with Open Services Innovation, a persuasive argument for the power of co-creation in the world of services." —TOM KELLEY, general manager, IDEO, and author, The Ten Faces of Innovation, The Art of Innovation "With his trademark style of beautifully explained examples, Henry Chesbrough shows how open service innovation and new business models can help you escape this product commodity trap and bring you to the next level of competition." —ALEX OSTERWALDER, author, Business Model Generation "Open Services Innovation shows how a business can redefine itself as a service organisation and tap into faster growth through shared innovation." —SIR TERRY LEAHY, chief executive, Tesco "Chesbrough shows how innovating openly with a services mindset can make you a market leader." —CHARLENE LI, author, Open Leadership, and founder, Altimeter Group

"Innovation and entrepreneurship are ubiquitous today, both as fields of study and as starting points for conversations among experts in government and economic development. But while these areas on continue to attract public and private investments, many measurements of their resulting economic growth-including productivity growth and business dynamism-have remained modest. Why this difference? Because not all business sectors are the same, and the transformative gains of some industries have been offset by stagnation or contraction in others. Accordingly, a nuanced understanding of the economy requires a nuanced understanding of where innovation and entrepreneurship occur and where they matter. Answering these questions allows for strategic public investment and the infrastructure for economic growth.The Role of Innovation and Entrepreneurship in Economic Growth, the latest entry in the NBER conference series, seeks to codify these answers. The editors leverage industry studies to identify specific examples of productivity improvements enabled by innovation and entrepreneurship, including those from new production technologies, increased competition, new organizational forms, and other means. Taken together, the volume illuminates whether the contribution of innovation and entrepreneurship to economic growth is likely to be concentrated, be it selected sectors or more broadly"--

Using a cutting-edge structure, where a current description of the service sector and up-to-date case studies are compared and contrasted with innovative activity in manufacturing, this book contributes towards a better theoretical understanding of innovation in the U.S. service sector. The U.S. service sector is the largest sector in the U.S. economy and accounts for an increasingly significant share of U.S. gross domestic product, currently 68 percent. Both in the United States, as well as in other industrialized nations, the service sector is a dynamic component of economic activity and growth. As pervasive and economically important as the service sector is, innovative activity in service-sector firms remains somewhat of an enigma; it is not well understood and not well defined because it differs dramatically from the traditional model of innovation in manufacturing. Innovation in the U.S. Service Sector fills this void, placing emphasis on the United States, but with global relevance. It is essential reading for all students of business and management, economics and political science.

Innovation is seen as an interactive process that involves many actors within and across organizational boundaries. In public sector services, innovation is a frequent, often holistic, and multi-layered process that involves many actors and many services at the same time. However, most of the existing literature on innovation in public sector services is based on the economics of innovation, which is heavily influenced by investigations of the private sector. Innovation in the Public Sector develops a more context-sensitive and rich approach in order to explore the different logics of innovation that prevail here. Rather than presenting a general theory of innovation, the book specifies how innovation and value creation are interconnected with social and institutional elements. Analytical constructs, including dynamic capability, absorptive capacity, and practice-based approaches, are reviewed and anchored in the organizational context of public sector services. Such a perspective on innovation can help us develop new understandings of the process and history of innovation, contributing to processual organizational analysis in a broader sense, and further developing present theories of organizational change.

The worst economic crisis since the Great Depression has generated a fundamental re-evaluation of the free-market policies that have dominated American politics for three decades. State of Innovation brings together critical essays looking at the 'innovation industry' in the context of the current crisis. The book shows how government programs and policies have underpinned technological innovation in the US economy over the last four decades, despite the strength of 'free market' political rhetoric. The contributors provide new insights into where innovations come from and how governments can support a dynamic innovation economy as the US recovers from a profound economic crisis. State of Innovation outlines a 21st century policy paradigm that will foster cutting-edge innovation which remains accountable to the public.