15 2. 3. Innovate beyond products and services: the relevance of the experience economy for innovating SMES...
and services or how they can generate income by licensing their technology to other companies.
and integrating knowledge from external partners to create new products or services. An urgent need exists,
and deliver products or services. Each of these SMES provided an interesting case to examine how SMES apply open innovation.
In section 2. 3, we look at how several companies transitioned from products or services to experiences in their search to offer more value to the customer.
When products or services commoditize, price competition becomes predominant and results in intensive price battles and industry shake-outs.
Case Devan 20 21 22 2. 3. Innovate beyond products and services: the relevance of the experience economy for innovating SMES New offerings can create value for customers in different ways.
In today's service economy, many SMES wrap additional services around their products to increase customer value in exchange for a premium price.
Although selling additional services might be a viable strategy in many industries, several of the successful SMES we analysed preferred to offer genuine experiences to their customers as a new source of value.
Experiences are as distinct from services as services are from goods. Experiences have always been around (in the entertainment business
for instance), but they have gone largely unexplored as a major driver for strategic innovation in SMES, in both manufacturing and services.
As products and services increasingly become commoditized, experiences have emerged as a next step in creating value for customers.
some SMES have grown profitably by transforming existing products or services into experiences for the customer.
the range and quality of individual services (nurses, doctors, cleaning services) is not the main qualifier;
indeed, more services can be quite bothersome for patients. Instead, Prof is centred a customer approach using the patient room as a stage to improve the patient's hospitalisation experience drastically.
and in offering customized products and services to clients (particularly in business-to-business industries). Segers & Balcaen (see p 35) is a small Belgian plastics packaging company that continuously identifies new packaging needs among its customers. 33 For many other companies,
Some small firms sidestep commoditization by turning products or services into experiences. Jan Kriekels, CTO of Jaga (see p 47), expressed it this way:
SMES may also wrap additional services around their product or offer genuine experiences to the customers.
The innovation network is an enabling factor in generating new products or services, but it also limits the number of options for the company to change and diversity. 47 Figure 7:
, DNA Interactif Fashion), increasing the attractiveness of the customers'products or services (e g.,, Curana), and providing new functionalities and increasing emotional value (e g.,
and commercialize the new product or services. Most SMES we studied rely heavily on value chain partners
and commercialize innovative products or services for specific customers33. PROF is different: It starts from the patient's room as customer-centric concept
or deliver services that were necessary to develop a new concept of the patient room.
All product and services innovations were aligned with and integrated in the new patient room concept,
Integrating different products and services into a new patient room concept also implied that their value for the usability groups was several times higher than
Partners have to trust each other to charge a reasonable price for the products or services they offer to innovation partners in the network.
and services to the central firms. Each partner is preoccupied with his own part of the new concept,
or services they offer to innovation partners in the network. 6. Manage the balance between internal management of the company and external management of the network.
and services or create new businesses. Because they lack the required internal resources SME's often collaborate with external partners to innovate successfully
and integrating knowledge from external partners to create new products or services. Fourth, managing and organizing open innovation in SMES is quite specific,
or services the SME wants to launch. 90 Networks of partners have to be managed as well,
looking for new ways to reposition their products and services. Some of the SMES we described opened new market space,
the acquisition of readymade products/services developed by third parties (i; the acquisition of processes set up by external parties (ii;
1 Faster development and market launch of new products and services; More diversity brought to innovation resulting in identification of more opportunities for growth;
and Improved success rate of new products and services by making the innovation process stronger.
on the one hand, for different, better or cheaper products and services and, on the other hand, to mobilise or exploit the opportunities and capacities within their value chains.
Advice and Services the specialised support that innovators require to create and enhance innovation capability;
and skills, finance, advice and services, knowledge and intellectual property, are exchanged within an ecosystem that is influenced by the prevailing framework conditions
or services (or whole businesses) to go to scale. Knowledge Intensive Business Services Organisations Provide specialist services,
from designing user interfaces for new products and services through to researching market entry strategies or prior art searches.
Provide access to specialist people and facilities (from interim CEOS to product testing/accreditation. Provide a conduit for knowledge flows between science
Overview of the industrial base in Ireland, Northern ireland and the EU-27 Policy makers/Regulators set Framework Conditions Market Conditions Intermediary Bodies Higher education Institutes Business Services
and the UK (see Figure 3). Innovation Ecosystem Actors Firms Financial services Orgs Higher education Institutes Innovation Support Agencies Business Services Orgs Intermediary Bodies Policy makers
or services New/improved processes, machinery, equipment or tools New/improved marketing methods or routes to market New/improved packaging
and shows that development of new or improved products or services is the most commonly undertaken activity:
Intertradeireland Business Monitor (2011). 040%10 50 20 60 30 70 Export off island Cross Border Not Exporter New/improved products or services
solving problems, implementing new developments and ideas, project management skills, launching new products and services,
or sector Finding external support for new ideas and developments Implementing new developments and ideas Launching new or improved products or services Excellent Very Good Quite Good Neither nor Quite Poor
or sector Finding external support for new ideas and developments Implementing new developments and ideas Launching new or improved products or services (n=689) Firms rating of innovation
and (c) launching new or improved products or services. Looking at the survey results by export orientation, it shows that firms who export off the island regard themselves in a better light than firms who trade cross-border or within their own domestic market.
%Services firms were more likely than firms in the other sectors to use some external input while fewer construction businesses use external support than in the other sectors.
Innovation support agencies, business services organisations and higher education institutes emerged as the least important partners,
Clients/Customers Suppliers Intermediary Bodies Financial services Organisations Innovation Support Agencies Business Services Organisations Higher education Institutes%0 20 40 60 80
The only exception is that exporters off the island see innovation support agencies and business services organisations as slightly more important than cross-border traders or non-exporters.
while services companies make relatively greater use of industry associations and networks. Manufacturing and agriculture businesses rate innovation support agencies and higher education institutes as being more important innovation partners than do other sectors.
Businesses regarded business services organisations as not very important but relatively more effective innovation partners,
Ranking of the effectiveness of external partners by innovative businesses Clients/Customers Suppliers Financial services Organisations Innovation Support Agencies Intermediary Bodies Business Services Organisations Higher education
Businesses trading cross-border were more complimentary about the effectiveness of business services organisations, suppliers and innovation support agencies.
Overall, international partnerships are reported more widely than crossborder ones for links with suppliers, higher education institutes, intermediaries and business services.
International Cross-Border Local%025 50 75 100 Clients Suppliers Intermediary Bodies Business Services Organisations Higher education Institutes Financial services Organisations Innovation
financial services organisations, business services organisations and innovation agencies are deemed moderately important and quite effective. A notable aspect of the ecosystem is held the view by firms that higher education institutes are not so important in the working of their ecosystem.
‘quite important'1. 3-2. 3 and‘very important'>2. 3. Framework Conditions Market Conditions Intermediary Bodies Higher education Institutes Business Services Organisations
However, business services organisations are regarded as less important and less effective while higher education institutes and financial services organisations are reported also as less effective.
A further opportunity exists to explore how business services organisations can support innovation in small firms.
on the design services sector on the island, suggested that such services were utilised under both because of lack of design companies (the sector is approximately one third the relative size of the UK's) and also a lack of understanding of the application and benefits of such
services. Another aspect of increasing the effectiveness of the innovation ecosystem is need a to develop
Rag analysis of innovation ecosystem large firms Framework Conditions Market Conditions Intermediary Bodies Higher education Institutes Business Services Organisations Financial services Organisations Innovation Support
particularly new/improved products and services, packaging and marketing methods. This is consistent with a more discerning international marketplace.
construction and manufacturing combined to have innovated around (a) products and services;(b) packaging or branding;(
for such policies would reduce its terms of trade by requiring its residents to give up some of their income to foreign consumers and/or pay higher prices for foreign goods and services.
but will do little to boost competitiveness as electric utility services are not typically internationally traded.
and services will not only be cheaper but better. Spurring competitiveness is important as well. Without competitive sectors, a nation's standard of living will be The lion's share of productivity growth in most nations comes not from changing the sectoral mix to higher-productivity industries
State involvement in the delivery of mentoring services inevitably involves formal structures and procedures which would merely deter potential volunteers and delay the most beneficial forms of mentoring.
The Forum is of the view that State resources currently focused on the provision of oneto-one mentoring services should be scaled down
which contains relevant up-to-date information on services available, along with links to agencies relevant to establishing
and their myriad of new products and services. 1. 1 Importance of Entrepreneurship Recent research underpins the need for Irish policymakers to encourage entrepreneurship.
which in turn provides the taxation revenue that allows for the government provision of social and infrastructural services. 1. 4
'We encourage our children to work in‘guaranteed secure'jobs in high-paying areas like the public sector, in multinational corporations or in the professional services fields (eg. accountants, lawyers, doctors.
or higher compared to 27.1%of Irish nationals. 9 Immigrants are entitled to use the services of the various enterprise support agencies,
social groups and places of worship to promote the many services and supports available to any person wishing to-18-9 CSO (2012) Migration and Diversity. 10 GEM (2012) Entrepreneurship in Ireland recommendations recommendations recommendations establish a business
however many initiatives tend to provide once-off mentoring services paid for by the state.
and the resources currently focused on the provision of one-to-one mentoring services should be scaled down
Free web services to support this are available. 14 Industry efforts to create this national registry are already underway
or monthly basis for an Office Hours style programme. 25 Award winners alumni responded to this question. 14 Possibly using free or inexpensive off-the-shelf web services like http://ohours
the Forum proposes that the State should significantly reduce its role in providing one-to-one mentoring services to achieve a target of 80%unpaid mentoring through peer mentoring groups and 20%paid delivery of one-to-one mentoring.
If paid mentoring services continue to be delivered by State agencies the Forum recommends cutting the charge to unemployed people trying to start a business as a specific measure.
If paid mentoring services are delivered by State agencies, the Forum recommends cutting the charge as a specific measure to support unemployed people trying to start a business.
and speakers could offer their services free of charge. The Webinars could be attended live or people could watch the webinar at a later time
telecommunications services and interactive learning that were traditionally the preserve of large multinational companies. During the late 70s and 80s, a significant proportion of the third level graduates from engineering and science courses emigrated to join multinationals in mainland Europe and North america.
entrepreneurial community services are given almost always without charge or profit and a substantial proportion of entrepreneurs willingly share their time and advice with others.
such as the public sector financiers, universities, professional services organisations, etc. There are a number of highly engaged government agencies in Ireland with plugged-in
Plug-and-play style services (internet, printing, telephone, postal and storage facilities) at affordable costs. Co-working spaces usually range from 2,
which contains relevant upto-date information on services available along with links to agencies relevant to establishing
A variety of rates are charged for different types of services and products. To simplify the burden to business,
For florists, provide a brochure which illustrates the different tax rates between flowers as plants and flowers as cut flowers and performing services such as planting flowers, etc. recommendations 65.
social groups and places of worship to promote the many services and supports available to any person wishing to establish a business
If paid mentoring services are delivered by State agencies, the Forum recommends cutting the charge as a specific measure to support unemployed people trying to start a business. 3. 4 Webinars 23.
which contains relevant upto-date information on services available along with links to agencies relevant to establishing
Dominated by microenterprises, over 90%of all startups were in the services, distribution and construction sectors.
5. 3 Distribution 2, 335 5. 4 Services 6, 429 7. 1 Finance & Tourism 372 6. 8 Total 11,
advisory & counselling services and education. In designing policies laws and regulations, the Government and its agents must adopt the best approaches possible, optimising opportunities for economic and social progress and minimising potential negative effects.
and services. 26 National Policy Statement on Entrepreneurship in Ireland The Social Inclusion and Community Activation Programme (SICAP) will seek to further address poverty and social exclusion through front-line interventions
which combines the full range of services in supporting the development of an entrepreneurial culture in Ireland.
It is notable that many of the countries with the fastest new business registration services
more online facilities and first stop shop services. 2. 4 Supports Ireland has developed an extensive range of supports for startups.
and potential entrepreneurs to access the wide range of services provided by the different government agencies.
including cultural tourism, audiovisual and digital technology, marine resources, niche manufacturing, food & beverages and creative language-based services.
Entrepreneurs need access to innovative ideas, products, processes and services. Equally, innovative products, processes and services need entrepreneurs who are prepared to take risks
and develop appropriate business strategies to bring ideas to market. Both entrepreneurship and innovation are associated with doing something new
and resources they need to develop new and improved products, processes, services, and to generate new knowledge and know-how.
in order to conceive and develop new globally successful operating models, products and business services. Any gaps in the system will be identified
EI) The Innovation Services and Business Processes (ISBP) Advisory Group will address the recommendations made in the Forfás report Assessment of Publicly Funded RD&I Supports for Innovation In services
Startup entrepreneur networks General business networks Women in business networks Owner-manager networks 10 Forfás Review of Business Mentoring Services, July 2014
Volunteer mentors make up less than 10%of the total of mentoring services. The 2013 evaluation of mentoring made a number of recommendations that will be progressed by DJEI.
The objectives for developing early-stage mentoring services in Ireland are to: Improve the service quality, consistency and professionalism of all mentor service engagements Increase the scope of mentoring for established companies and the provision of specialist mentoring,
The BICS deploy services from the regional capital cities (Cork, Derry, Dublin, Galway and Waterford), delivering the key enablers for job creation in the innovative startup and early stage SME market to an EC Accredited Quality Standard.
DJEI)- Broaden mentoring services to support the challenges of scaling and under-represented specialist expertise (sectoral, market, technical, internationalisation etc.).
and invest in the redevelopment of the existing portfolio of enterprise space to facilitate modern infrastructure and support services to build local capacity.
and services to address public sector challenges and needs in a market where there is not a ready-made appropriate solution available.
From the perspective of firms, SBIR programmes allow the development and piloting of new products and services.
Some sectors, such as travel, accommodation, electronic goods and services, have already been transformed by digital trading.
and continue to work to attract international buyers to Ireland to source Irish goods and services.
EI) Examine practical ways of highlighting the merits of the public procurement of innovative products and services.
and other stakeholders to implement the recommendations of the Forfás Review of Business Mentoring Services in Ireland.
Drives the commercialisation of research from higher education research institutions by supporting the development of innovations at all stages of the commercial pipeline to the point where they can be commercialised as new products, services and companies. 2011: 79 Projects 2011:
EI Services Accessed Market research Centre (referral numbers) n/a 45 Overseas Office (referral numbers) n/a 26 Innovation Vouchers (approved numbers) n/a 150
and services but do not lead to increased future productivity). To distinguish between taxes and PAGE 4 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 spending that support investment versus consumption,
or policy encourage organizations to produce more goods and services with fewer inputs? 6 Innovation:
or policy encourage organizations to create new products, services, processes, or business models that add value
the federal government will be able to provide the same services at a lower cost. Congress should therefore increase spending on federal IT infrastructure.
Moreover, with the move to an economy with many more jobs in the services sector, the availability of jobs that require limited physical exertion has grown.
female workers earned money that let them purchase goods and services, which generated further demand for What is certain is that the United states will be less prosperous
Reduced outlays normally come at a cost of reduced government services, funding or transfer payments. There are numerous ways to cut spending,
it would not raise the taxes on exported products and services. Another revenue source could be a small financial transaction tax (also known as a Tobin tax)
and ultimately for generating products and services through applied research and commercialization. For this payoff to happen
software and services that make up the modern information age, spanning semiconductors, telecommunications, productivity or security software, computers, tablets and gaming.
Aligning the supply of graduates with the demand of the regional labour market necessitates actions that target the improvement of the curricula, the services and the research capacities of the relevant higher education institutions.
in 2010.4 Services accounted for 45.8%of GDP in 2011. The public sector was an important employment provider in WT with nearly 19%of total employment in 2011,
%)Tourism is one of the most important sectors within services. Although the number of tourists decreased in 2012,
income from hotel services ranks the region second in Hungary, trailing only the Central Hungarian region.
R&d-intensive MNC subsidiaries, indigenous enterprises and R&d performers and services providers (the region's universities) could all benefit from an unprecedented volume of support.
and can thereby offer R&d services: in particular, advanced manufacturing-specific services to a wide range of industries within and outside the region.
Structural Funds related support has prompted the emergence and the capacity improvement of a number of innovation intermediary and bridging institutions.
and centres of excellence have been added to WT's innovation ecosystem to provide services to the region's innovative actors.
the number of well-equipped innovation services providers has increased at a higher pace over the past five years than the number of innovative companies.
ons (per mln pop) Total R&d personnel(%)Employment in knowledge--intensive services(%)Empl. in medium--high/high-tech manufacturing(%)EPO patent applica:
and/or to outsource R&d activities to regional services providers; Stimulate indigenous companies'technological upgrading
or products/services that require knowledge-intensive activities; Foster indigenous companies'more intensive engagement in R&d activities and/or in non-technological innovation;
including R&d services provision, collaborative R&d with industry; and transfer of research results, e g. in the form of spin-off creation;
which necessitates the continuous improvement of the relevant higher education institutions'curricula as well as their student services. Higher education institutions'research capacities needs to be improved further
development and provision of regional innovation related services. By the end of the 2000s, RIAS have undergone substantial capacity development:
and of innovation services providers still figure high among the policy objectives. At the same time new elements in regional innovation policy-makers'orientation necessitate some new components within the mix of policy measures.
or industry-university-specific collaborative innovation, support 20 Regional Innovation Monitor Plus to the development of incubation and innovation management services,
particularly in the field of creative industries(‘creative vouchers'to be used for design-specific services,
for example 1) to innovation vouchers to be used for R&d services; or IPR consultancy; 2) to the establishment of new technology oriented start-ups, e g. in creative industries;
Instead of direct cash transfers to companies, innovation services ought to be developed and diversified. New requirements include the expansion of business angels'networks, enhancement of regional business incubation services;
improvement of regional innovative stakeholders'access to financing e g. to risk capital, or to micro-credit.
‘Support to public education institutions'services provision aiming to develop creative industries-related basic competencies'triggered creative responses from local stakeholders,
Lifelong learning and digital education were promoted by the measure‘Knowledge Depo Express'that fostered services development to enhance the digital competencies of the underprivileged.
Development Agency http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/supportmeasure/dental-innovation-innovationdentist-services Regional Innovation Monitor
Furthermore, county-level foundations for enterprise promotion are also important services providers (consultancy, fundraising) to actors (among others) in AM.
it is a research and development services provider for industry in Zala (and neighbourhood. Technológiai Centrum is engaged at the same time in practice-oriented education
'The proposed implementation measures included the development of innovative enterprises'access to consultancy services with respect to intellectual property right protection and management and support to R&d activities related to the region's key industries.
Furthermore, the objective of the improvement of innovative enterprises'commercialisation performance through services that facilitate their market access, figures high among the proposed policy measures of WT'S RIS3.
The former will provide knowledge-intensive business services for companies in the green industry and in agriculture.
‘production'or‘services'activities are mentioned. In practice however, advanced manufacturing related activities have acquired support (among others.
and collaboration and human resources development. 21 Earlier cluster promotion measures targeted only clustering and the development of the services portfolio of the newly formulated clusters.
Companies that participate in the scheme offer tutorial services for the students'thesis work (the topic is proposed by the company)
members'capacity development and the development of automotive industry related education. 22 Centrope tt established a voucher scheme to facilitate SMES'access to R&d services. 30 Regional Innovation Monitor
or that of innovation services providers is minimal. 23 Above and beyond 1.‘Façade regionalism'and excessive centralisation regional innovation policies are characterised by the following features:
and the improvement of clusters'services portfolio, were announced last in 2012 in WT. Cluster promotion has shifted towards support to innovative companies within accredited innovation clusters, hence,
Support to start-ups should be complemented by innovation services, such as mentoring, consultancy. Venture capital funds need to be involved more intensively in the implementation of start-ups'support programmes.
including measures that supported the enhancement of these institutions'services; investment in research infrastructure; and investment in higher education institutions-based R&d.
Conversely, the development of curricular content or of student services is hard to measure and evaluate:
The development of existing clusters'mentoring services and the diffusion of national and international best practices (including benchmarking, virtual platform,
'The detailed description of the project revealed that the development of new (contract manufacturing) services necessitated the newly acquired production equipment
Over a period of three years (between 2011 and 2013) the company gained support from three additional calls facilitating investment in new technology, development of human resources and development of new services based on new technology.
The services that accompanied beneficiaries'direct financing included project mentoring and consultancy with respect to the preparation of a business plan;
access to venture capital services; and linkages building with potential business partners. 36 Regional Innovation Monitor Plus 3. 5 Possible Future Orientations
At the same time stakeholders'innovation collaboration can be enhanced also through the establishment of competence centres that provide R&d-intensive services to them.
) 14,50 8, 30 5, 60 2012 Eurostat 258,9 174,7 Employment in knowledge-intensive services(%total employment) 25,10 35,00 39,00 2012 Eurostat
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