Towards a systemic approach to unlock the transformative power of service innovation

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1 Enterprise and Industry Carsten Schierenbeck Clusters and Support for SMEs Towards a systemic approach to unlock the transformative power of service innovation Final conference of the Project R&D and Innovation in Services (INNOSERV) OECD, Paris ( )

2 Background: Concept of Transformative Power of Service Innovation Services are transformative when they disrupt traditional channels to market, business processes and models, to enhance significantly customer experience in a way which impacts upon the value chain as a whole. 2

3 Background: Concept of Large-Scale Demonstrators represent a powerful means for de-risking the development and scale-up of novel service systems, encouraging engagement with stakeholders and users, sharing experience identifying clusters of expertise and opportunities for partnerships. working back from user-needs to solutions move from small-scale prototypes to larger-scale 3

4 The Smart Guide to Service Innovation A couple of concepts, Ten Do s and Don ts, and Twenty good examples of how to unlock the transformative power of service innovation for regional structural change and industrial modernisation.

5 Towards a systemic approach

6 Scope for regional and industrial innovation policy to unlock the transformative power of service innovation Activity level Firm level (Enterprise) Sectoral level (Business environment) Market level Assimilation policies - Innovation metrics - Support to public RTD - Facilitation of knowledge transfer - Business incubation, growth support & internationalisation - IP support and innovation management - Access to finance and investment readiness - Sectoral innovation metrics - Technology and service innovation foresight - Cluster mapping and analysis - Market foresight & emerging industries watch - Industry-led selfregulation, interoperability standards & certification - Legal & regulatory framework for services (ecommerce) Targetted policies - Specific RTD programmes - Promotion of ICT use (ebusiness) - Promotion of new business models in services and new service concepts in manufacturing - Specific enterprise and industrial innovation support schemes for service firms -Specific risk financing schemes for services - Voucher schemes to support the service innovation capacity - Sectoral industry and cluster policy initiatives in service sectors (user involvement, cooperation, cross-sectoral linkages, new forms of clustering) - Public private partnerships demonstrating service and organisational innovation - Lead Market Initiatives on new services - Voucher schemes to enhance spill-overs - Awareness raising activities - Deregulation / liberalisation of specific services Soft & hard infrastructure - Research institutions for services - Specialised training institutions for services - Service parks and incubation centres - Strategic infrastructure projects (e.g. broad-band access, logistic & service hubs, co-working spaces) - Living labs, design centres - Supervisory authority Horizontal policies - Tax incentives - State Aids - Education & training - Public procurement - Entrepreneurship policies for start up s - Mobility programmes - IPR policies - Sector-specific standardisation, such as in ICT - Internal Market for services (e.g. Services Directive) - Competition policy, including merger controls Enterprise and Industry (2012) Smart Guide to Service Innovation

7 The European Service Innovation Centre The Expert Panel recommends that: The European Commission develop a European Service Innovation Centre (ESIC) to strengthen the links between policy makers, business and academia. The ESIC can help raise awareness of new developments and emerging opportunities related to service innovation. The ESIC act as a central hub of expertise [ ] to provide authoritative analyses, sectoral and foresight reports, and evaluations of support programmes.

8 The European Service Innovation Centre Aim to improve awareness among policy-makers of the contribution of service innovation and service firms to economic development in particular on the transformative power of service innovation in shaping emerging sectors, industries and markets Specific objectives: to capture and demonstrate the impact of the transformative power of service innovation and its contribution to structural change (through a European Service Innovation Scoreboard), to provide customised advise to six selected model demonstrator regions (through policy stress tests), and to promote and raise awareness of the role and impact of service innovation. Established as virtual centre of excellence with a pool of experts in October 2012 through a service contract for a period of two years

9 A. European Service Innovation Scoreboard B. Stress test of regional service innovation policies C. Dialogue on lessons and implications Framework Data analysis ESIS 2013 Ind #1 Ind #2 Ind #3 Ind #4 Ind #5... Regional profiles Region N: Ind # X Ind # Y Ind # Z Ind # Pilot demonstrator regions Self assessment Expert analysis Peer-review Website Lessons Workshops Conferences European trends Policy briefings Promotion Overall trends Regional policy recommendations Policy implications European Service Innovation Centre: A service contract of the Enterprise and Industry Directorate-General of the European Commission 9

10 Model Demonstrator Regions 3 regions wishing to strengthen their traditional manufacturing industries Support the modernisation of industrial sectors and facilitate structural change from a manufacturing-based industry to a modern economy through service innovation Develop policies aimed at improving the position of SMEs in global value chains by adding value through design, creativity and from cross-sectoral cooperation Basque Country, Upper Austria, Emilia Romagna

11 Model Demonstrator Regions 3 regions wishing to support the development of emerging industries Support the development of favourable regional ecosystems for the emergence of new service industries Develop modern cluster policies that go beyond a narrow sectoral focus Luxembourg, Northern Ireland, Canary Islands

12 Types of Support to be Provided to Model Demonstrator Regions The European Service Innovation Centre will provide a regional policy stress test summary assessment reports analysing the potential role that service innovation can play (following desk research, study visit and interviews with regional stakeholders) organisation of 2-day peer review meetings, resulting in a proceedings report final policy briefings with concrete recommendations, action plan and roadmap to address the challenges of the model region promotion of the regions demonstrator approaches (via the ESIC web pages, newsletters and events)

13 Clusters and Support for SMEs Unit, SMEs and Entrepreneurship Directorate European Commission, Enterprise and Industry Directorate-General News item on the establishment of the European Service Innovation Centre (Web pages as of early 2013 at a Smart Guide to Service Innovation Expert Panel on Service Innovation in the EU (2011) final report EPISIS (European Policies and Instruments to Support Innovation in Services) The KIS (= knowledge intensive services) Innovation Platform

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