Entrepreneurship, Creativity and Management
Edited by Paul Windrum and Per Koch
Chapter 1: Innovation and Entrepreneurship in Public Services
1. Innovation and entrepreneurship in public services Paul Windrum 1.1 INTRODUCTION Service sectors now make up the majority of economic activities in the USA, Europe and Japan. Yet the contribution of services faces a major challenge: advancing productivity growth, employment and welfare require a strengthening of the innovative performance in services. In Europe, the Lisbon 2000 strategy identiﬁed the need to enhance performance in services activities. This led to the deﬁnition of a new strategy for the internal market for services, and to the adoption of a corresponding framework directive in 2006, among other service-related actions. The contribution of services to economic growth, employment and welfare will not be possible without a major role for innovation in services. This book addresses a fundamental knowledge gap: it seeks to understand and explain the dynamics of public sector services innovation.1 Public sector innovation is a key contributor to national growth, and to the welfare of individual citizens, yet precious little research has been conducted on public sector innovation.2 In part, this is a legacy of the old view that held that manufacturing is the sole source of productivity growth and economic wealth, while services are unproductive and technologically backward. This old view has been successfully challenged in recent years by research on services innovation in the private sector. Now is the time to critically evaluate the contributions of innovative public sector service providers. The lack of prior research on public sector innovation is also, in part, a consequence of disciplinary...
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