By Faiz Gallouj
While modern economies are cutting edge, also they are predominantly provider economies in rather a lot as companies are the most resource of wealth and employment. in spite of the fact that, there's nonetheless enormous unwillingness to think about innovation when it comes to providers, a paradox rooted in an out of date belief which regards production because the merely engine of development. during this booklet, the writer propounds a theoretical framework which describes and evaluates the most techniques to examining and knowing innovation in prone. He offers attention-grabbing and huge empirical fabric at the nature and resources of innovation in a number of prone sectors and nations, and makes an unique contribution either to theories of innovation in prone and theories of innovation as a rule. Taking either an evolutionary and conventionalist stance, he demonstrates that providers, and extra importantly concepts in prone, should be considered as the recent wealth of countries.
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Extra info for Innovation in the Service Economy: The New Wealth of Nations
Example text
In the ‘accordion theory’ (Hollander, 1966) the retailing dynamic is characterized by alternation between outlets offering a wide, non-specialized range of products and those with a narrow, specialized product range. However, the cycle model in its various forms, as well as Barras’ reversed cycle model, cannot account adequately for the wide diversity of forms of innovation in the retail sector. e. organizational innovation). However, even in this particular case, they are trapped within a binary logic (lowhigh Innovation in Services: a Brief Survey 25 prices; widekestricted product range) and fail to take full account of the diversity of new shop formats and of new forms and new channels of distribution.
2 . 1 . 2 The core/peripheral service approach This approach, developed by marketing specialists (see Eiglier and Langeard, 1987; Jallat, 1992), is applied more particularly to household services, and especially to those that can be readily broken down into various basic service activities, Innovation in Services: a Brief Survey 23 The relatively simple idea is that these various activities can be divided into two groups: the core or basic service, which satisfies the client’s principal needs (what might be termed the ‘minimum service’, that is the activity without which service delivery cannot take place): the accommodation in a hotel, the meal in a restaurant, transport in the case of an airline, etc.
From this same theoretical perspective, Niehans (1983) advances the hypothesis that any financial product can be reduced to a given combination of the 24 Innovation in the Service Economy following three functions or characteristics: the exchange of present money against future money; the linking of borrowers and lenders; the execution of payments in a client’s name. The financial innovation arises when these three functions are combined in any new way. This approach to innovation in terms of characteristics gives rise here to a local theory of innovation.