The service sector represents more than 70% of GDP in EU27 and the GDP of service intensive countries is higher than that of less service intensive countries. However, there is a negative relationship between the size of the service sector and a country's productivity growth that can only be overcome by service innovation. The innovation system of services is less well understood than the innovation system of manufacturing and many of the innovation system models currently applied as a basis for policy de cisions give poor advice for stimulating service innovation.This project aims to improve our understanding of the innovation system of service innovation by taking a service system perspective based on service dominant logic. It includes a conceptual st udy developing the conceptual framework for empirically applying this perspective, a set of empirical studies applying the conceptual framework to measure innovation and innovation effects in selected service systems, and a policy brief suggesting implica tions of the perspective if applied to develop policy tools and to make policy decisions. The project includes support for funding a postdoctoral position and involves researchers from The Norwegian School of Economics, NTNU, Vestfold University College, University of Karlstad, Copenhagen Business School and Manchester Business School.
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