"Identifying innovation in surveys of services: a Schumpeterian perspective" by Ina Drejer, article review

Identifying innovation in surveys of services: a Schumpeterian perspective

by Ina Drejer

review by Adina Krampe and Michele D’Aliessi

Agenda

Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

‣ Article’s background

‣ Abstract

‣ Introduction

‣ Main concepts‣ Different approaches to service innovation analysis‣ Schumpeter’s perspective on innovation‣ Four new service innovation concepts

‣ Keypoints

‣ Conclusions

‣ Associate professor at Aalborg University (1st in DK)‣ Currently Chief Consultant at Central Denmark Region

Article's background


Ina Drejer

‣ In 2008, the journal ranked 11th among the world's top journals in "Management" and 1st in the "Planning & Development"

Research Policy

Studies in manufactoring innovation are still dominant

Abstract


But many approaches rises in service innovation

New concepts linked with Schumpeterian perspective

Which is the best model to analyze service innovation?

Former innovation studies

‣ “servicification” since 1950s

‣ Studies increased‣ Topics: service economy and producer services,

consumers or employee knowledge‣ services is important in economic activities

‣ but no focus on innovation!

‣ What’s new?‣ Empirical studies of service development


Different approaches to service innovation analysis


Assimilation approach

Demarcation approach

Synthesis approach

Services similar to

manufactoring

Subordinate surveys

The two innovations are different

Autonomous surveys

Integrative approach

encompasses both

Not so many surveys

1. Assimilation approach


Focus on technological innovations

Considering many types of

innovation

technical focus on innovation is too narrow

e.g. Organizational innovation(also important for manufactoring)e.g. New package solutions

Conclusion

2. Demarcation approach


Specialised studies of innovation in services

Studying of characteristic features (clients and interactive models, appropriability conditions)

Peculiarities of service innovation also applicable on manufacturing (organisational innovation)

Opens the way to develop the synthesis approach?

Schumpeter’s theory of economic dev.


“[...] economic development is driven by the discontinuous emergence of new combinations (innovations) that are

economically more viable than the old way of doing things” (Schumpeter, 1934)

Time

GDP

Trend

Schumpeter’s theory covers 5 areas

1. Product innovation: introduction of a new good or a new quality of a good

2. Process innovation: introduction of a new method of production

3. Market innovation: opening of a new market

4. Input innovation: conquest of a new source of supply of raw material or intermediate input

5. Organizational innovation: the carrying out of a new organisation of industry


Four new service innovation concepts

How innovation is carried out in services?

How it takes many other forms than just product and process innovation?


1 2

43

Ad hocinnovation

External relationship

innovation

Expertise-fieldinnovation

Formalizationinnovation

1. Ad hoc innovation


“interactive (social) construction to a particular problem posed by a given client”

this new knowledge is economically irrelevant if the invention is not carried into practice

helps to produce new knowledge and competences

challenges the possibilities of diffusion of an ‘innovation’, as it consists of a specific,

non-reproducible solution to a specific problem

2. External relationship innovation


“establishment by a firm of particular relationshipswith partners”

is highly firm specific, which makes it difficult to sum up to an aggregate level

lack of tools for measuring organizational innovation

It is a particular type of organisational innovation.There has in the past been a lack of survey tools for identifying and measuring organisational innovation, but there are recent successful

examples of surveys of this type of innovation

3. Formalization innovation


“putting the service characteristics ‘into order’, specifying them, making them less hazy, making

them concrete, giving them shape”

it is knowledge creation that fuels innovation, not knowledge per se

i.e. McDonald’s organization of work

Formalization is an important step towards innovation, but it is rarely an innovation in itself, unless it can be directly relatedto new marketable products or new ways of organising production or

carrying out processes.

4. Expertise-field innovation


“detecting new needs and responding to them through a procedure of accumulating knowledge and expertise

within services”

results in opening of new markets, diversificationor renewal of product ranges, and creation of a competitive advantage in terms of knowledge

and expertise

described as potential, actual innovation only materialise in an interaction with a client

is clearly an innovation, also viewed from a Schumpeterian perspective, as it consists of detecting new needs,

responding to them and thereby possibly opening up new markets

Key points


is too narrow to cover the specificities of service innovation

provides a framework for studying manufacturing

and services on the same terms

if more strictly applied in services could lead the way for a

synthesis approach

Schumpeterian perspective on

innovation

rich enough to encompass innovations

in services

but

Conclusions

‣Many peculiarities of service innovation do also apply to manufactoring

‣So-called autonomous service innovation studies have the possibility of leading the way towards such a synthesis approach to innovation

‣There is a need for a conceptual strengthening of service-specific innovation studies that could be partially satisfied by creating a bridge between assimilation and synthesis approaches


Thank youquestions?

"Identifying innovation in surveys of services: a Schumpeterian perspective" by Ina Drejer, article review

Technology

organisational

organizational

identifying

synthesis

service innovation

schumpeterian

process innovation

innovation