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Innovation and Competition in IT Service Industries

Author

Listed:
  • Abdelillah Hamdouch

    (CLERSE - Université Lille 1 et MATISSE - Université Paris 1)

  • Esther Samuelides

    (HEC School of Management et MATISSE - Université Paris 1)

Abstract

Information Technologies (IT) induce many innovations in service industries. Innovations in IT highlight the peculiarities of innovation in service industries compared to manufactured-goods industries. Because innovations often affect competitiveness, service-providers attach a high importance to them and introduce them frequently during intense competition. The purpose of this article is to characterise innovations in these new IT service industries and to determine which innovations will ensure the success of service-providers. We explain the applications of new Information Technologies and describe how they have affected service industries, either traditional or new service activities. Then, we emphasize the main characteristics of new IT-based services and show how distinct service applications generate different types of innovations. Furthermore, we explain how innovations are often combined to introduce decisive ruptures in the market and precise how service-providers can increase their competitiveness in these new service industries by continuously innovating

Suggested Citation

  • Abdelillah Hamdouch & Esther Samuelides, 2000. "Innovation and Competition in IT Service Industries," Cahiers de la Maison des Sciences Economiques r00044, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:r00044
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    References listed on IDEAS

    as
    1. Colombo, Massimo G. & Garrone, Paola, 1998. "Common carriers' entry into multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 77-105, March.
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    3. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Competition; Innovation Processes; Information Technology; Learning Loops; Service Industries;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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