Service innovators: evidence from the Innobarometer surveys. Hugo Hollanders UNU-MERIT Maastricht University
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1 Service innovators: evidence from the Innobarometer surveys Hugo Hollanders UNU-MERIT Maastricht University
2 Importance of R&D Source of many productivity enhancing innovations Essential to competitiveness of fast-growing industries Terms of trade: advantages due to high value added products Demand for and supply of highly skilled human resources Critical to firms' absorptive capacity and technological learning of a country 2
3 Innobarometer surveys Quota survey of all firms over 20 employees in EU Member States and EFTA countries with over 5,000 respondents Innobarometer 2007 covers the period Innobarometer 2009 covers the period
4 Defining service sector innovators = NACE 50, 51, 52, 55, 60, 61, 62, 63, 64, 65, 66, 67, 70, 71, 72, 73, 74 Innovator = introduced new or significantly improved Innobarometer 2007 Innobarometer 2009 goods services processes for manufacturing products or producing services logistics, delivery or distribution processes support processes organisational methods products services processes (e.g. production processes, distribution methods, support activities) organisational structures marketing strategies 4
5 Almost half of all innovators in the service sector use R&D Innobarometer 2007 Innobarometer 2009 Innovator with R&D 35% (44% of innovators) 37% (45% of innovators) Innovator without R&D 46% (56% of innovators) 45% (55% of innovators) Non-innovator 19% 18% 5
6 R&D innovators: no difference in growth performance Change in turnover innovator with R&D innovator without R&D Increased 65% 60% 64% 54% Decreased 11% 20% 13% 24% The same 24% 20% 23% 22% Turnover increased By more than 50% 5% 6% By 10% to 50% 62% 57% By less than 10% 34% 37% IB2007 IB2009 IB2007 IB2009 6
7 R&D innovators: broader innovation strategy innovator with R&D innovator without R&D goods/products 66% 65% 42% 40% services 62% 72% 58% 60% processes for manufacturing products or producing services logistics, delivery or distribution processes 58% 64% 44% 44% 40% 36% support processes 58% 59% organisational methods 65% 68% 48% 57% marketing strategies 67% 54% IB2007 IB2009 IB2007 IB2009 7
8 R&D innovators: dominated by large firms innovator with R&D innovator without R&D SMEs 88% 89% 94% 95% employees 57% 53% 64% 68% employees 32% 36% 30% 27% Large firms 11% 11% 6% 5% employees 4% 5% 3% 4% 500 or more employees 8% 6% 4% 2% IB2007 IB2009 IB2007 IB2009 8
9 R&D innovators: rely more on B2B and less on B2C innovator with R&D innovator without R&D Which of the following are important markets? Other divisions of company 16% 18% Other companies 78% 68% Individual consumers 47% 64% IB2007 IB2007 9
10 R&D innovators: international markets more important Where do sell products or deliver services? innovator with R&D innovator without R&D Own region 94% 95% Elsewhere in own country 66% 49% EU countries, NO, CH 44% 27% Outside EU 28% 17% Where are your most demanding customers? In your country 73% 81% EU countries, NO, CH 9% 7% Outside EU 5% 1% No notable difference 13% 10% IB2009 IB
11 R&D innovators: engineers and designers important sources of ideas Have any of the following been a major source of ideas? Production engineers or technicians innovator with R&D innovator without R&D 43% 21% Marketing department 42% 41% Design staff 33% 13% Management 79% 74% Research department 44% 5% IB2007 IB
12 R&D innovators: public procurement more important driver of innovation Has your company? Won at least one public procurement contract innovator with R&D innovator without R&D 39% 35% Submitted at least one tender 7% 8% Investigated opportunities to submit 5% 3% Not interested in public procurement 49% 55% Did any of the include the possibility to sell an innovation? public procurement contracts 45% 26% submitted tenders 31% 26% investigated opportunities 56% 4% New demands from the public sector had a positive effect on innovation 25% 17% IB2009 IB
13 Conclusions Almost half of all innovators in the service sector use R&D R&D innovators (compared no non-r&d innovators) Are engaged in more innovation activities (broader strategy) Include more large firms Sell more to businesses than to consumer Are more active on international markets where they find their most demanding customers Rely more on engineers and design staff for ideas Are more involved in public procurement Public procurement has a more profound effect on their innovation 13
14 Thank you For questions or comments, please contact: Hugo Hollanders Senior Researcher MERIT Maastricht University PO Box 616, 6200 MD Maastricht, the Netherlands Tel Fax
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