The Handbook of Innovation and Services
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The Handbook of Innovation and Services

A Multi-disciplinary Perspective

Edited by Faïz Gallouj and Faridah Djellal

This Handbook brings together 49 international specialists to address an issue of increasing importance for the world’s post-industrial economies; innovation as it relates to services.
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Chapter 24: Entrepreneurship and Service Innovation: A Challenge for Local Development

Marie-Christine Monnoyer-Longé


Marie-Christine Monnoyer-Longé1 24.1 Introduction French labour market statistics show that business services are offsetting job losses due to deindustrialization. Macroeconomic indicators and employment figures for the European Union confirm the relatively dynamic performance of business services. However, up to the 1980s, regional development policy was focused mainly on the industrial sector with business services to manufacturing being virtually ignored (Gallouj, 2006). Policy changes have had two main objectives: to create jobs locally, and to avoid any discouragement for investment in new industry based on the shortage of services in the metropolitan areas (Soldatos, 1991). Outside of the regional capitals, unstable demand for services prevents them from truly benefiting from any start-up support incentives (Léo et al., 1991). After 1985, there is evidence of growth in some cities (Moyard, 2000; Léo and Philippe, 2007), which is consistent with economic base theory (Planque, 1993; Léo and Philippe, 1998) and has led to better-balanced policy that recognizes services as being an active component of the local economy. Research into innovation in services has supported this policy trend. The results of various studies provide breakdowns of innovation by type and domain and help to further our understanding of its potential impact on users and partners (Shostack, 1984; Miles, 1993; Gadrey et al., 1995; Gallouj, 1994, 2002; Sundbo, 1996). These studies dispel the notion of services as a cottage industry that is not involved in export; suggest a range of tools that can be used to analyse service innovation, in all...

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