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"First published in 2000. Over the past two decades, the service sector have increased dramatically and now occupy the largest share of the economy of advanced industrial societies. Certain business services are regularly cited as evidence for the emergence of a "knowledge economy". In this pioneering book, leading researchers in the fields of service industries and innovation studies investigate the reasons for the growth of the service sectors and this emergent knowledge economy. Drawing on material as diverse as macroeconomic statistics and firm-level case studies, the contributors demonstrate that services are often important innovators in their own right, as well as contributing to innovation and economic performance in their user industries. The question of how far services are special cases, and what specific processes and trajectories characterize their innovative activity is treated systematically. Additionally, a variety of original analyses and information resources are presented. This book should be of value to the student of the modern industrial society, to those seeking to forge policies appropriate to the new context of economic development, and to researchers who are confronting the challenges of the knowledge economy."

"This book brings together contributions from researchers and practitioners in a celebration of achievements with the intention of adding to the wider understanding of how service innovation develops. Each case presents a brief description of the context in which the innovation occurred, the opportunity that led to the innovation and an overview of the innovation itself, also addressing how success was measured, what success has been achieved to date and providing links to further information. The book is organized around five major themes, each reflecting recognized sources of service innovation. Business model innovation, new ways of creating, delivering or capturing economic, social, environmental and other types of value. The organization in its environment, an organization engaging beyond its own boundaries, with public private partnerships, sourcing knowledge externally, innovation networks, and open or distributed innovation. Innovation management within an organization, an organization actively encouraging innovation within its own boundaries using project teams, internal governance of innovation, and methods or tools that stimulate innovation. Process innovation, changes in service design and delivery processes, such as consumer led innovation or consumers as part of the innovation process, service operations management, and educational processes. Technology innovation, the use of technology, including ICT enabled innovation, ICTs that are themselves innovative and support the delivery of new services, new ICT services, new ways of delivering services associated with ICT products, and technology other than ICT. The final part of the book is given to four extended cases allowing for a more in-depth treatment of innovation within a complex service system. The extended cases also illustrate two important and growing trends, firstly the need for, and benefits of, a more customer centric approach to service innovation and secondly the need for better understanding of public services and the role of public-private partnerships in identifying and achieving innovation. "