Innovation in the Service Economy

Innovation in the Service Economy

The New Wealth of Nations

Faïz Gallouj

In this book Faïz Gallouj propounds a theoretical framework which describes and evaluates the main approaches to analysing and understanding innovation in services. He provides interesting and extensive empirical material on the nature and sources of innovation in various services sectors and countries, and makes an original contribution both to theories of innovation in services and theories of innovation in general. Taking both an evolutionary and conventionalist stance, he demonstrates that services, and more importantly innovations in services, can be regarded as the new wealth of nations.


Faïz Gallouj

Subjects: economics and finance, economics of innovation, services, innovation and technology, economics of innovation


This book as a whole and, more specifically, some of its individual chapters, have benefited from the comments, criticisms or encouragement offered by many colleagues, friends and family members, in particular Cristiano Antonelli, Andrk Barcet, Joel Bonamy, Michel Callon, Patrick Cohendet, Jacques De Bandt, Faridah Djellal, Jean Gadrey, Camal Gallouj, Mike Hales, Ian Miles, Marie-Christine Monnoyer, Keith Pavitt, Jon Sundbo and Olivier Weinstein. I thank them all warmly. I am also grateful to the following institutions that funded the empirical investigations that laid the foundations for the book: the European Commission (DG XII, TSER program), the Commissariat Gkneral du Plan, the French Ministry of Education, the French Ministry of Research and Technology, the French Post Office and the Union des Assurances de Paris. I express my sincere gratitude to my friends Marianne Kleim (financial management), Kourosh Saljoghi (computer expert), Vkronique Testelin (administration) and Andy Wilson (translation) whose professionalism and creativity make them real case studies in innovation in service provision. For allowing me to draw upon previously published material I also thank the publishers of Research Policy (for material appearing in Chapter 3, section I), Science and Public Policy (for material used in Chapter 4, Section 3 ) and Economies et Sociktks (Chapter 5, Section 2). Finally I must express my loving thanks to Faridah, Naim, Naila and Nassim, for their patience and encouraging cheerfulness. It is to them that this book is dedicated. xi

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