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The case of market and system failures in services innovation

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  • Luis Rubalcaba
  • Jorge Gallego
  • Pim Den Hertog

Abstract

This paper reviews and analyses the rationale for an innovation policy in services. It focuses on the relevance of the various categories of market and system failures, on the basis of economic arguments and some empirical evidence at EU level. Results show that market and system failures affect service innovation, so that there are no economic reasons supporting any discrimination of policy actions against service activities. Moreover, some of the market and system failures may be even more relevant in the field of services than of goods, although differences between categories of services should be also taken into consideration.

Suggested Citation

  • Luis Rubalcaba & Jorge Gallego & Pim Den Hertog, 2009. "The case of market and system failures in services innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 30(4), pages 549-566, May.
    • Handle: RePEc:taf:servic:v:30:y:2009:i:4:p:549-566
    DOI: 10.1080/02642060903067571
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    Cited by:

    1. Bernhard Dachs & Oscar Montes Pineda & Iris Wanzenböck & Jorge Gallego, 2013. "From market and systemic failures to an integrative approach for ServPPINs," Chapters, in: Faïz Gallouj & Luis Rubalcaba & Paul Windrum (ed.), Public–Private Innovation Networks in Services, chapter 16, pages 411-433, Edward Elgar Publishing.
    2. Laurentiu Tachiciu & Vasile Dinu & Iacob Kerbalek, 2011. "Quality Uncertainty as a Barrier to Business Services Development," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(Special N), pages 712-724, November.
    3. Gheorghe Savoiu & Consuela Necsulescu & Marian Taicu & Luminita Serbanescu, Emil Crisan, 2014. "Level of Satisfaction of Educational Services Consumers. Impact and Consequences for the Responsibility of an Economics Faculty," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 1-88, February.
    4. L. Rubalcaba & P. Windrum & F. Gallouj & Meglio Di & A. Pyka & J. Sundbo & M. Weber, 2011. "ServPPIN. The Contribution of Public and Private Services to European Growth and Welfare, and the Role of Public-Private Innovation Networks. Servppin Final Publishable Summary Report," Working Papers hal-01111787, HAL.
    5. Faïz Gallouj & Luis Rubalcaba & Paul Windrum, 2013. "Conclusions and agenda for future research," Chapters, in: Faïz Gallouj & Luis Rubalcaba & Paul Windrum (ed.), Public–Private Innovation Networks in Services, chapter 18, pages 462-486, Edward Elgar Publishing.
    6. Fornoni, Mariel & Arribas, Iván & Vila, José E., 2012. "An entrepreneur's social capital and performance: the role of access to information in the Argentinean case," Nülan. Deposited Documents 1881, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    7. Anna-Leena Asikainen, 2015. "Innovation modes and strategies in knowledge intensive business services," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 77-95, March.
    8. Iris Wanzenböck & Luis Rubalcaba & Oscar Montes Pineda & K. Matthias Weber, 2013. "Policy developments and measures for enhancing ServPPINs dynamics," Chapters, in: Faïz Gallouj & Luis Rubalcaba & Paul Windrum (ed.), Public–Private Innovation Networks in Services, chapter 17, pages 434-461, Edward Elgar Publishing.
    9. María Redondo & Carmen Camarero, 2019. "Social Capital in University Business Incubators: dimensions, antecedents and outcomes," International Entrepreneurship and Management Journal, Springer, vol. 15(2), pages 599-624, June.
    10. Faïz Gallouj & Luis Rubalcaba & Paul Windrum (ed.), 2013. "Public–Private Innovation Networks in Services," Books, Edward Elgar Publishing, number 14802.
    11. Matthijs Janssen & Carolina Castaldi & Alexander Alexiev, 2014. "Dynamic capabilities for service innovation: conceptualization and measurement," Working Papers 14-07, Eindhoven Center for Innovation Studies, revised Mar 2014.

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