Matthijs Janssen. Service innovation in relation to a region s socio-economic challenges: Four approaches for developing systemic policy mixes

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Matthijs Janssen Service innovation in relation to a region s socio-economic challenges: Four approaches for developing systemic policy mies

Contet 1. Rising attention for service innovation: Pure services do innovate (Gallouj & Djellal, 2010) Services as drivers of innovation (Muller & Zenker, 2001) Servitization (Howells, 2006; Vargo & Lusch, 2004) Policy interest: service-friendly innovation policy 2. Attention for societal and region-specific issues Policy interest: meeting societal challenges (Rodriguez, 2013) How to develop service-sensitive innovation policy in accordance with socio-economic goals?

Service innovation policy Different accounts of service innovation (Coombs & Miles 2000) Different types of (eperimental) interventions (Den Hertog et al. 2010) Eisting literature focused on rationales (Rubalcaba 2006, 2010; Van Cruysen & Hollanders, 2008) Scarce attention for how to formulate/align policy measures Lack of structured approach for service innovation policy formulation! School of Innovation Sciences

Designing policy mies The choice of innovation policy (Borrás & Edquist, 2013) Innovation systems / holistic perspective (Flanagan et al., 2011) - Policy mies Functional perspective (Hekkert et al., 2007) - Identifying weaknesses School of Innovation Sciences

Schools of thought on service innovation School of Innovation Sciences

School of Innovation Sciences

School of Innovation Sciences

Systemic policy: Assimilation School of Innovation Sciences

Systemic policy: Demarcation School of Innovation Sciences

Systemic policy: Pre-synthesis School of Innovation Sciences

Systemic policy: Synthesis School of Innovation Sciences

Comparative case study Contet: European Service Innovation Centre (ESIC) Regional assessment and advise Method: Desk research Scoreboard Site visit: 10 interviews Peer review School of Innovation Sciences

Upper Austria: background The nations most competitive and eportoriented region: The industrial motor of Austria Policy issues: New business models, labour market Meeting grand challenges in new strategic program School of Innovation Sciences

Policy mi (service-inclusiveness) Specific Synthesis Demarcation Servicebased Presynthesis Goodsbased Affected function of innovation system: Entrepreneurial activities Knowledge development and transfer Innovation and business model generation Financing innovation and growth Collaboration and networking Assimilation Generic

Specific Clusterland (networks) Logistics network Clusterland (clusters) TMG Impulse / Technology Centers Energy contracting program UA Green Energy and Environmental Technology Energy Technology Programme UA High Tech Incubator Innovation Network UA Research Funding CATT + TIM Tourism Initiative (innovation cooperation) Tourism Initiative (innovation funding) Business start-up (tourism & transport) Local supply program Goodsbased Servicebased UA Research and Technology Council Innovation assistants Easy2innovate (small projects funding) Research Promotion (in EU) Loan guarantees Investment capital UA Innovation Award Young entrepreneurs: Small loan & Toppremium Education account for young entrepreneurs Economic stimulus program Founder Funds Labour market promotion initiatives Generic

Specific v Clusterland (networks) Synthesis Logistics network Goods-based Clusterland (clusters) TMG Impulse / Technology Centers Energy contracting program UA Green Energy and Environmental Technology Energy Technology Programme UA High Tech Incubator Innovation Network UA Research Funding CATT + TIM UA Research and Technology Council Innovation assistants Easy2innovate (small projects funding) Research Promotion (in EU) Loan guarantees Investment capital UA Innovation Award Generic Tourism Initiative (innovation cooperation) Tourism Initiative (innovation funding) Education account for young entrepreneurs Economic stimulus program Founder Funds Business start-up (tourism & transport) Local supply program Young entrepreneurs: Small loan & Toppremium Labour market promotion initiatives? Assimilation Demarcation Service-based Pre-synthesis

Limburg: background Closure of mines industrial orientation services Policy issues: Connecting service (innovation) initiatives Meeting societal challenges School of Innovation Sciences

Specific Health Campus Agro-Food Campus Chemicals/Materials Campus Limburg Ventures Limburg Ventures II Document Services Valley Synthesis Smart Services Hub Goods-based Top Technology Clusters Hoogstarters TechStart Startersfonds Participatiefonds LimburgMakers Innovation vouchers SILVER Assimilation Demarcation! Business Services School Service Science Factory Service Business Acceleration programme Service-based Pre-synthesis Generic

Policy mi: Upper Austria Service innovation approach Eamples System function 1. Assimilation Neutral measures that cover technological and service innovation on an equal basis Innovation assistants Research promotion Loan guarantees Investment capital Innovation award Education account for young entrepreneurs Economic stimulus program Founder Funds E K I F C Technology-focused Research and technology council Innovation Network High Tech Incubator Energy Technology Programme Green Energy & Environ.Technology Technology Centres 2. Demarcation Sectoral (vertical) programmes for services Tourism initiative 1 Business start-up (tourism & transport) Local supply program 3. Presynthesis 4. Synthesis Thematic programs integrating opportunities from goods and services Clusterland (networks)

Policy mi: Limburg Service innovation approach Eamples System function 1. Assimilation Neutral measures that cover technological and service innovation on an equal basis Technology-focused 2. Demarcation: Sectoral (vertical) programmes for services 3. Pre-synthesis Cross-sectoral measures focused on the link between services and manufacturing 4. Synthesis Thematic programs integrating opportunities from goods and services Innovation vouchers Startersfonds Participatiefonds SILVER Hoogstarters TechStart Top Technology Clusters Limburg Ventures Chemicals / Materials Campus E K I F C Smart Services Hub LimburgMakers (Servitization part) Service Science Factory Service Business Acceleration Programme Business Services School Document Services Valley Health Campus Agro-Food Campus

Comparison and mutual policy learning Upper Austria: Innovation system lacks business model renewal. Policy support could take form of pre-synthesis; see measures in Limburg. Integrating service innovation in measures for societal challenges. E.g. Health-campus or Agro-food campus. Reducing compleity of policy mi Limburg: Further on its way towards service-inclusive policy mi. Suggestion for assimilation: innovation awards (= meets lack of business model generation in generic innovation policy) Upper Austria is eample for clusters that address variety of system functions and that are linked to each other Both: From demarcation to (pre-) synthesis: both regions have vertical measures they want to develop further. Logistics (UA) and Smart Services (Limburg)

Conclusion 1. Set policy goals. Which problem: which kind of knowledge or activity is needed? 2. Understanding of opportunities of service innovation (incl. pre-synthesis) 3. Identifying appropriate modification of policy mi (by engaging in mutual policy learning) - Approaches as alternatives School of Innovation Sciences

Further research Etend research on integrative approaches Cluster policy: Demarcation vs. (pre-)synthesis - Infusing: Chemelot (L), ClusterLand (UA) - Thematic: Health Campus (L), ClusterLand Networks (UA) Smart specialization: - integrative and knowledge-based perspective on transforming economic structures - national or regional priorities and challenges, eploitation and further development of local strengths, and support for diverse forms of innovation - Identifying and contetualizing synthesis measures School of Innovation Sciences