Innovation statistics for the European service sector

Abstract

This report provides indicators for innovation in the business services sector of the European Union. For comparison, identical indicators are provided, where possible, for the manufacturing sector. The main results are given in Section 4, which compares policy-relevant innovation indicators for services and manufacturing, and Section 5, which calculates a Service Sector Innovation Index (SSII) and uses the results to explore several issues on the nature of innovation by service sector firms. Section 4 focuses on whether or not innovation policy is adequately serving the needs of service sector firms by comparing innovation indicators for firms in the service and manufacturing sectors. A common concern is that innovation policy could be biased in favour of manufacturing. The results of these analyses are summarized in Table E1 and suggest that policy actions to improve the innovative capabilities of service sector firms should focus on the following aspects, where service firms receive less assistance than manufacturing firms: public procurement and support from innovation programmes. For three policy areas, support could be required under specific conditions (‘qualified ’ in Table E1), while for three areas there is no evidence to suggest that policy is biased against service firms: supply of qualified personnel, support for start-ups, and regulatory burdens. Table E1. Are policy interventions required to reduce programme bias against service sector firms? Policy area Action needed? 1. Encourage service sector firms to use intellectual property Qualified 2. Public procurement (demand factor) Yes 3. Improve supply of qualified personnel No 4. Improve use of and access to public science Qualified