Workshop Non-technical innovation The new service economy and new horizons in a global world Luis Rubalcaba Professor of Economic Policy, University of.

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Presentation transcript:

Workshop Non-technical innovation The new service economy and new horizons in a global world Luis Rubalcaba Professor of Economic Policy, University of Alcalá-Madrid Ex-President of RESER Karlsruhe, October 2008 Non-technical Innovations – Definition, Measurement & Policy Implications

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Contents: What is the new service economy Recent empirical evidence on the service economy New horizons for services – New challenges for services – New challenges for service research – New challenges for policy makers Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Workshop Non-technical innovation The new service economy: What is really new? Beyond some new services, are we in a new service economy? Services traits which are not new – Services coming from an old tradition – Services already integrated in goods since the beginning of economic activity to some extent – The material support for services is becoming more and more important Services traits which are new – New integration in any economic and social activity – New challenges

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba The service economy: a global view Note: for Australia last year with information available is 2003 Source: Based on World Development Indicators, World Bank. Figure 1. Sectoral value added (% GDP), 2005 Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Figure 2. Services value added (% of GDP) Note: for Australia last year with information available is 2003 Source: Based on World Development Indicators, World Bank. Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Figure 3. Market services share 2005 and annual growth rate Note: Market services includes wholesale and retail trade (G), hotels and restaurants (H), 61 (water transport), 62 (air transport), 63 (other supporting and auxiliary transport activities; activities of travel agencies), financial intermediation (J), real estate, renting and business activities (K). Source: Based on Euklems Database Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Figure 4. Public services share 2005 and annual growth rate Note: Public services: public administration and compulsory social security (L). Source: Based on Euklems Database Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Some explanatory reasons for the growth of services Figure 5. Relationship between relative productivity growth and relative employment growth, EU15, 1979–2003. Cross-sector comparison Source: Based on OECD and GGCD National Accounts Statistics. Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Figure 6. Relationship between relative productivity growth and employment share growth, EU15, 1979–2003. Cross-country comparison Source: Based on OECD and GGCD National Accounts Statistics. Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Figure 7. Employment in services and GDP per capita, 2005 Source: Based on OECD and GGCD National Accounts Statistics. Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba The causes that explain the growth of services Source: Rubalcaba (1999) Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Figure 8. Sigma convergence, EU25-US Note: Standard deviations in the participation of services sectors en total employment. KIBS includes computer and related activities (72), research and development (73) and Legal, technical and advertising (741t4). Other business services includes renting of machinery and equipment (71) and other business activities, nec (745t8) Source: Based on Euklems Database Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba EU + US EU EU EU EU bpbpbpbp Market services -0,0620,004-0,0380,047-0,1010,015-0,0780,000 Public services -0,2990,001-0,0780,655-0,7730,000-0,5490,002 Mix services -0,0380,023-0,0180,323-0,1590,016-0,0560,040 Manufacturing -0,1010,0130,1690,0310,1600,0430,1400,003 Trade -0,1840,000-0,1370,123-0,5050,023-0,3920,002 Hotels & restaurants -0,0920,672-0,1790,358-0,3500,013-0,3250,005 Water & Air Transport -1,7990,000-3,4470,001-0,4850,293-0,9080,024 Financial services -0,1100,6420,2860,156-0,2790,6820,0330,888 Real estate, renting & business activities -0,3400,000-0,1990,080-0,3950,120-0,2070,029 KIBS -2,2240,000-0,2220,354-0,1610,776-0,2110,319 Other business services -3,0680,000-0,7150,031-0,7720,296-0,5100,068 Education -0,2640,006-0,0510,742-0,5130,014-0,2470,051 Health & social work -0,1540,022-0,0870,065-0,5290,108-0,0130,848 Other community, social & personal services -0,3550,0130,0060,973-0,5160,152-0,3630,071 Inland transport -0,0110,969-0,5720,158-0,3050,347-0,3370,122 Post & telecommunications -0,3110,425-0,6450,479-2,3060,011-1,7190,008 Table 1. Beta convergence regression summary, EU-US Note: Marked figures are significant at p <, Source: based on EUKLEMS Database, March 2008 Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba New horizons for services – New challenges for services – New challenges for service research – New challenges for policy makers Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba 1. New challenges for the service economy (I) Globalisation and service offshoring Management of risk and uncertainty Role of services in manufacturing Service engineering and service formalization Competition and deregulation Role of ICT Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba 1. New challenges for the service economy (II) New skills requested Unemployment and social exclusion Sustainable development Ageing population Regional asymmetries Transformations in public services Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba 1. New challenges for the service economy (III) Service innovation as a way to face all the challenges – Product and process innovation in services – Organizational and non-tech innovation in services – Organizational and non-tech innovation in non-services activities – Service innovation through the use of KIS Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba 2. New challenges for the service research Services are not just a sector any more: a dimension of the economy, of product, of work (co-creation), of life (experience) Need of ambitious agendas for services research Multidisciplinary approaches needed. Service Science? Learning from the real work of services Interaction with policy-makers Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba 3. New challenges for the policy makers No reason for the exclusion of services from current public policies Need to take the best from existing good practices: the case of Germany Need to assess the needs of different regions and countries Services innovation as a key pivotal dimension of most action Workshop Non-technical innovation

Innovación en Servicios The New Service Economy and the New Horizons 16–17 October 2008 in Karlsruhe Luis Rubalcaba Thank you for your attention Workshop Non-technical innovation