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Innovation in services and the attendant old and new myths

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  • Gallouj, Faiz

Abstract

Although service activities now account for the greater share of wealth and employment in developed economies, they are still perceived negatively. Once described as residual activities characterised by low productivity, low capital intensity and low skill levels, they are now regarded as lacking in innovative capacity. This article examines these myths and their origins. Innovation in services exists, although it has to be accepted that it may possibly take different forms and be organised differently. Nevertheless, against a background of convergence between a manufacturing sector that is becoming increasingly service-oriented and a service sector that is gradually becoming industrialised, it would be wrong to conclude that there is an irreconcilable opposition between goods and services when it comes to innovation; rather, there are opportunities for mutual enrichment.
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  • Gallouj, Faiz, 2002. "Innovation in services and the attendant old and new myths," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(2), pages 137-154.
    • Handle: RePEc:eee:soceco:v:31:y:2002:i:2:p:137-154
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