1. 1 The Innovation Process of Knowledge Intensive Business Service Yan Tao National Institute for Innovation Management, School of Management, Zhejiang University, Email: Northlandtao@163.com

2. 2 Contents Problems to be solved 1 Innovation process 3 Primary results & discussion Primary results & discussion 5 The components of FTC 2 Background 24 Methodology

3. 3 1. Problems to be solved 1.What is service innovation? 2.How KIBS firm innovate? 3.Characteristics of KIBS ’ innovation process?

4. 4 Contents Problems to be solved 1 Innovation process 3 Primary results & discussion Primary results & discussion 5 The components of FTC 2 Background 24 Methodology

5. 5 Here are the facts…  All national economies are shifting to services  major industrialized nations are >70% services, developing nations are close behind  To better study, manage, and engineer service systems, new skills are needed  combination of business, organization, technology skills  Educational system is slowly shifting toward services  service management, operations, marketing, and engineering courses and programs exist  At national level, governments can draw investment toward service innovation. Coming Age of Service

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7. 7 What are Knowledge Intensive Business Service (KIBS)?  Concepts:  Miles(1995)  Hipp(1999)  Muller and Zenker(2001)  OECD(2001)  ……

8. 8 What are Knowledge Intensive Business Service (KIBS)? Financial service ICT service Business service Engineering & technical service KIBS Knowledge intensive Innovative Consultant Intermediaries …….

9. 9 Contents Problems to be solved 1 Innovation process 3 Primary results & discussion Primary results & discussion 5 The components of FTC 2 Background 24 Methodology

10. 10 Let’s from technological innovation process 1.The Technology Push Theory 2.The Market Pull Theory 3.The Coupling Innovation Process Theory 4.The Functional Integration Innovation Process Theory 5.The Systems Integration and Networking Innovation Process Theory

11. 11 On service innovation process  Bckground of the following three trends: 1.Increasing specialization in knowledge production; 2.Increasing complexity in physical artifacts, and in the knowledge bases underpinning them; 3.The difficulties of matching technological opportunities with market needs and organizational practices (Pavitt, 2003)

12. 12 Service innovation  Barras （ 1980,1984 ）： RPC Theory  Miles （ 1993;1995 ）： Theory Development  Gallouj （ 1991;1994;1998 ）： Theory Development  Sundbo （ 1994;1997;1998 ）： Theory Development  Builderbeek （ 1998 ）： 4-dimension model  Hauknes （ 1996 ）  And Finland, Singapore ， Korea

13. 13 Service innovation process  Sundbo(1998) 1.Conception stage 2.Development stage 3.Protection stage  Sundbo’s service innovation process model is particularly applicable to those enterprises that provide "modular" and "customer oriented" services.

14. 14 The model of new service development (NSD)  Scheuing and Johnson(1989)  Bowers(1989)  Martin and Horne(1995)  Lee and Xon(1996)  Edvardsson(1996)  Zeithaml and Bitner(2000)

15. 15 Hertog and Bilderbeek’s Four dimension model

16. 16 Contents Problems to be solved 1 Innovation process 3 Primary results & discussion Primary results & discussion 5 The components of FTC 2 Background 24 Methodology

17. 17 Methodology 1.Multi-case study (Yin, 2003)  Select typical cases from the each sub-sector of KIBS:  finance service,  ICT service,  Business service  Engineering and technical service.  Data collection was based on interviews with executive managers from the firms.

18. 18 Methodology 2. Service Innovation investigation Wong(2002)—Singapore Tether(2002)—OECD Hipp(2005)—German Drejer Using questionnaire  The survey was performed in 2006-2007, Mainly covering the KIBS firms in districts of Beijing, Shanghai, Guangzhou  Distribute More than 2000  Now we have received about 700 questionnaires, of which 453 are valid.

19. 19 Contents Problems to be solved 1 Innovation process 3 Primary results & discussion Primary results & discussion 5 The components of FTC 2 Background 24 Methodology

20. 20 1. The cooperator of KIBS’ innovation process Client From Service Client from M Technology supplier Suppli er of M G Business Service supplier Research institute &Univ Compet itor others Financial Service 52.1715.9452.175.821.7428.9920.2917.394.35 ICT Service52.3817.8652.3823.8120.2426.1932.1421.430 Engineering and technical service 25.7131.434025.712028.5745.718.572.86 Business Service 61.5421.1530.7715.3817.3134.6236.5413.467.69

21. 21 The characteristics of KIBS’ innovation process  Highly Customer-oriented (Bilderbeek, Hertog, Marklund, Miles, 1998)  Interaction  Networking  Cooperation in innovation  …….

22. 22 Thanks for your attention!