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Service Innovation in Philippine Industries

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  • Serafica, Ramonette B.

Abstract

This paper examines the evidence on service innovation using the 2012 Census of Philippine Business and Industry and the 2009 Pilot Survey of Innovation Activities. It reveals the wide variation in R&D intensities and differences in innovation behavior between the manufacturing and services sectors, for example, with respect to information sources and innovation activities. Many similarities were also detected in terms of service product innovation, the popularity of organizational innovation, and the preference for training activities, among others. Looking at structural factors, the probit regression analyses indicate that the size of the firm is a good determinant for all types of innovation. Ownership and age were also significant for certain innovation outputs, which could help inform policies on foreign direct investment and entrepreneurship. The results of this paper reveal the importance of service innovation not only for the services sector but also for the manufacturing sector consistent with servicification. In general, different types of innovation are undertaken by industries for various reasons, and the technological and nontechnological forms of innovation complement each other. If the government aims to promote economy-wide upgrading, support for innovation should not favor only one type of innovation output or activity. Further research on innovation behavior to cover more industries will be useful in developing a comprehensive and more nuanced approach to innovation policy.

Suggested Citation

  • Serafica, Ramonette B., 2016. "Service Innovation in Philippine Industries," Discussion Papers DP 2016-20, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2016-20
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/service-innovation-in-philippine-industries
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    References listed on IDEAS

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    1. Bruce Tether, 2005. "Do Services Innovate (Differently)? Insights from the European Innobarometer Survey," Industry and Innovation, Taylor & Francis Journals, vol. 12(2), pages 153-184.
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    Cited by:

    1. Llanto, Gilberto M. & Serafica, Ramonette B. & Albert, Jose Ramon G. & Quimba, Francis Mark A. & Vizmanos, Jana Flor V. & Bairan, Jose Carlos Alexis C., 2017. "Measuring and Examining Innovation in Philippine Business and Industry," Discussion Papers DP 2017-28, Philippine Institute for Development Studies.

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    More about this item

    Keywords

    Philippines; services; research and development (R&D); innovation; manufacturing; servicification;
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