Social Services‌ Defining services – Economic logic Sample Clauses

Social Services‌ Defining services – Economic logic. Awareness of the importance of service innovation as an engine for the economic growth is a recent phenomenon. Previously, services were considered as non-innovative activities, or innovations in services were reduced to the adoption and use of technologies19. The innovation literature was fo- cused on the manufacturing sector, technological product development, and process innovation, and thus, innovation in services was addressed from a manufacturing perspective. Indeed, the corre- sponding literature “assimilated services within the consolidated framework used for manufacturing sectors and manufactured products”20 (Gallouj & Savona, 2009). The risk of such a bias towards manufacturing is the underestimation of innovation in services and its effects, because innovation in services includes invisible or hidden innovations that are not captured by the traditional indicators of innovation in the manufacturing sector. However, the traditional approach has been increasingly challenged, mainly because the underesti- mation of the dynamics of the service sector was seen as inconsistent with the rise of the service economy, which now accounts for nearly 70% of gross domestic product and employment in mem- ber countries of the Organisation for Economic Co-operation and Development (OECD, 2005). Ac- cordingly, the discussion about innovation in services should be extended beyond the traditional (technological) perspective21. The unresolved issues relative to the definition of service output have contributed to the underesti- mation of the performance of service innovation in terms of productivity and employment. There is a particular analytical problem of the definition of service output, which reflects on the definition of service innovation. When analyzing service innovation, scholars have merely used analytical tools designed for manufacturing within the traditional technological view of innovation. This approach has led to the misunderstanding and the underestimation of innovation activities in services. Xxxxxxx and Xxxxxx00 argue that it has also led to a wrong conclusion that innovation in services has a rela- tively small effect on economic performance in terms of productivity and value added, compared to innovation in manufacturing. A clear conceptualization of services is crucial for our project, as it will give us understanding of how to approach the current crisis in social services sector in the five project countries23 and where the driving forces of ...
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