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Rerthinking Innovation Comparisons between Manufacturing and Services: The Experience of the CBR SME Surveys in the UK

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  • Alan Hughes
  • Eric Wood

Abstract

Most previous research comparing innovation activity in the manufacturing and service sectors has taken insufficient account of the variation in the intensity and nature of innovation activity within those sectors. We address this question using a simple sectoral split and applying it to manufacturing and the business services sector. The results indicate that in some respects there is greater variation in innovation activity within manufacturing and business services than between them. In addition, there is strong similarity between corresponding groupings in each sector. Clear distinctions in innovation patterns do exist between the manufacturing and business service sectors, and imply a considerable depth of technological innovation capability within both sectors. These results imply that the supposed differences in innovation between manufacturing and services may have been exaggerated in earlier research. A previous version of this paper was presented at a workshop entitled "Conceptualising and Measuring Service Innovation" at the Centre for Research in Innovation and Competition (CRIC) at Manchester Business School in May 1998.

Suggested Citation

  • Alan Hughes & Eric Wood, 1999. "Rerthinking Innovation Comparisons between Manufacturing and Services: The Experience of the CBR SME Surveys in the UK," Working Papers wp140, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp140
    Note: PRO-1
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    References listed on IDEAS

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    1. Marina Doroshenko & Ian Miles & Dmitry Vinogradov, 2014. "Knowledge Intensive Business Services: The Russian Experience," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 8(4), pages 24-39.
      • Marina Doroshenko & Ian Miles & Dmitry Vinogradov, 2014. "Knowledge Intensive business services: the Russian experience," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 8(4 (eng)), pages 24-39.
    2. Gallouj, Faiz & Weinstein, Olivier, 1997. "Innovation in services," Research Policy, Elsevier, vol. 26(4-5), pages 537-556, December.
    3. Saviotti, P. P. & Metcalfe, J. S., 1984. "A theoretical approach to the construction of technological output indicators," Research Policy, Elsevier, vol. 13(3), pages 141-151, June.
    4. Barras, Richard, 1993. "Interactive innovation in financial and business services: The vanguard of the service revolution," Research Policy, Elsevier, vol. 22(2), pages 101-102, April.
    5. T. P. Hill, 1977. "On Goods And Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-338, December.
    6. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    7. repec:bla:revinw:v:23:y:1977:i:4:p:315-38 is not listed on IDEAS
    8. Rinaldo Evangelista & Giorgio Sirilli, 1995. "Measuring innovation in services," Research Evaluation, Oxford University Press, vol. 5(3), pages 207-215, December.
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    Cited by:

    1. Ghatak, Subrata & Watkins, Rob, 2001. "Small and medium size enterprises: innovation and growth in the UK and Poland," Economics Discussion Papers 2001-3, School of Economics, Kingston University London.
    2. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Business services and the changing structure of European economic growth," MPRA Paper 3750, University Library of Munich, Germany.
    3. Thelma Quince & Hugh Whittaker, 2002. "High Tech Businesses in the UK: performance and niche markets," Working Papers wp234, Centre for Business Research, University of Cambridge.
    4. Henk L.M. Kox, 2004. "The Contribution of Business Services to Aggregate Productivity Growth," Contributions to Economic Analysis, in: Fostering Productivity: Patterns, Determinants and Policy Implications, pages 243-264, Emerald Group Publishing Limited.
    5. Cosh, A. & Zhang, J., 2012. "Variety of Search and Innovation: A Comparative Study of US Manufacturing and Knowledge Intensive Business Services Sectors," Working Papers wp431, Centre for Business Research, University of Cambridge.
    6. Suma S. Athreye & David Keeble, 2002. "Specialized Markets and the Behavior of Firms: Evidence from the United Kingdom’s Regional Economies," International Regional Science Review, , vol. 25(1), pages 38-62, January.

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