This chapter presents an integrative framework to study the way in which the preferences, competences and knowledge of multiple public and private sector actors interact and co-determine whether or not a new service paradigm is adopted and developed over time. This is a key theme in this book on public–private innovation networks in services (ServPPINs). New public services are usually intended to replace an existing public service product or service process. Consequently, the development and diffusion of the new service requires fundamental discontinuities amongst the skills, knowledge and competences of three sets of agents: consumers, public–private providers and policy-makers. A core issue affecting the displacement of an old service paradigm with a new service paradigm is path dependency. Path dependencies create, support and maintain the pre-existing service paradigm, potentially leading to a lock-out of new service paradigms. This is illustrated by a case study of the Transport Innovation Fund (TIF) bid that was put together by a ServPPIN organized by the Greater Manchester Passenger Transport Executive (GMPTE).Using the integrative framework, we consider a set of factors that play a key role in the successful development and diffusion of new service paradigms. These are, first, the existence of consumer types who champion new services, and, just as importantly, are willing to bear the costs in taxes of political policies required to support new services.
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