The Transformative Power of Service Innovation: Call for Action on a New Policy Framework

PART 1/3: Definition, Trends, Instruments and Challenges for Policy Makers

Economic transformation can only be achieved by being well aware of global trends, drivers, new concepts and tools as well as understanding the challenges behind for the generation of a supportive policy framework.

For this reason, this publication discuses the key global trends which Policy Makers as well as leaders and decision makers in regions, nations, and industry should be aware of in order to stay globally competitive such as:

  • Emergence of user-driven open service innovation to address global challenges such as climate change, environmental pollution, mitigation of natural resources, food and energy security, public health and aging population to ensure smart, sustainable and inclusive growth;
  • Shift in traditional manufacturing industries towards services solutions leading to a shift from mass production to mass customisation, flexibility and just-in-time production with the implementation of ICT and Key Enabling Technologies (i.e.nanotechnology, micro- and nanoelectronics, industrial biotechnology, photonics, advanced materials and manufacturing technologies);
  • Consumerism placing the consumer at the centre of innovation and production value chains leading to the emergence of experience industries;
  • Disruptions of global value chains: shift from product-based to service-oriented model where outcomes are replacing outputs;
  • Emergence of new industries due to cross-sectoral spill-overs (cross-fertilisation);
  • Changes in business and organisational models, processes, delivery systems, customer processing systems with a shift towards eBusiness models such as the use of smart phones, collaborating in the cloud and e-tailers threatening retailers;
  • Increased focus on social networks for doing business.