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

1. Identifying innovation in surveys of services:
a Schumpeterian perspective
by Ina Drejer
review by Adina Krampe and Michele D’Aliessi

2. Agenda
‣ 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
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

3. Article's background
Ina Drejer
‣ Associate professor at Aalborg University (1st in DK)
‣ Currently Chief Consultant at Central Denmark Region
Research Policy
‣ In 2008, the journal ranked 11th among the world's top
journals in "Management" and 1st in the "Planning &
Development"
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

4. Abstract
Studies in manufactoring innovation are still dominant
But many approaches rises in service innovation
New concepts linked with Schumpeterian perspective
Which is the best model to analyze service innovation?
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

5. 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
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

6. Different approaches to service innovation analysis
Assimilation Demarcation Synthesis
approach approach approach
Integrative
Services The two
approach
similar to innovations
encompasses
manufactoring are different
both
Subordinate Autonomous Not so many
surveys surveys surveys
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

7. 1. Assimilation approach
Focus on Considering
technological many types of
innovations innovation
e.g. Organizational innovation
e.g. New package solutions
(also important for manufactoring)
Conclusion
technical focus on innovation is too narrow
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

8. 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?
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

9. 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)
GDP
Trend
Time
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

10. 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
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

11. 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
External
Ad hoc
innovation
relationship
innovation
Formalization Expertise-field
innovation innovation
3 4
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

12. 1. Ad hoc innovation
“interactive (social) construction to a particular problem
posed by a given client”
helps to produce new knowledge and competences
this new knowledge is economically irrelevant if the invention is not carried
into practice
challenges the possibilities of diffusion of an ‘innovation’,
as it consists of a specific,
non-reproducible solution to a specific problem
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

13. 2. External relationship innovation
“establishment by a firm of particular relationships
with partners”
lack of tools for measuring organizational innovation
is highly firm specific, which makes it difficult
to sum up to an aggregate level
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
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

14. 3. Formalization innovation
“putting the service characteristics ‘into order’,
specifying them, making them less hazy, making
them concrete, giving them shape”
i.e. McDonald’s organization of work
it is knowledge creation that fuels innovation,
not knowledge per se
Formalization is an important step towards innovation,
but it is rarely an innovation in itself, unless it can be directly related
to new marketable products or new ways of organising production or
carrying out processes.
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

15. 4. Expertise-field innovation
“detecting new needs and responding to them through a
procedure of accumulating knowledge and expertise
within services”
described as potential,
actual innovation only materialise in an interaction with a client
results in opening of new markets, diversificationor renewal of product
ranges, and creation of a competitive advantage in terms of knowledge
and expertise
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
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

16. Key points
is too narrow to cover rich enough to
but encompass innovations
the specificities of
service innovation in services
Schumpeterian
perspective on
innovation
provides a framework for if more strictly applied
studying manufacturing in services could
and services on lead the way for a
the same terms synthesis approach
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

17. 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
Identifying innovation in surveys of services: a Schumpeterian perspective, by Ina Drejer

18. Thank you
questions?