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Luis Rubalcaba, Héctor Lagunes and Javier Reynoso

This chapter is devoted to the emerging issue of innovation in services within developing countries. It first highlights the major role innovation is expected to play as a driving force in services within developing and emerging countries. Then it presents a conceptual framework for approaching services and service innovation in these economies. This framework includes the four following variables: the place of services in the national innovation systems, competencies and capabilities, networking and collaborations and socio-economic impacts. On the basis of this framework, the chapter identifies a set of 12 research areas for the future. These include the bridge between service innovation and social innovation (and especially the questions of innovation for and with the base of the pyramid: BoP), service innovation from inclusive technologies, the role of Knowledge-intensive business services (KIBS), innovative provision of public services, policies for service innovation, North–South International flows and South–South best practices.