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Innovation in services -- how different from manufacturing?


  • Cesaltina Pacheco Pires
  • Soumodip Sarkar
  • Luísa Carvalho


Using standardised firm data a comparative analysis of the determinants of product and process innovation in manufacturing and services is performed. Results show that in services there are significant differences in innovation behaviour, in terms of intramural and extramural R&D. It is also found that size matters less in services than in manufacturing. Although youth has a positive effect in both cases, young service firms are more likely than young manufacturing of being pioneer innovators. The results reveal the importance of learning by doing in service process innovations, as young service firms are less likely to introduce process innovations.

Suggested Citation

  • Cesaltina Pacheco Pires & Soumodip Sarkar & Luísa Carvalho, 2008. "Innovation in services -- how different from manufacturing?," The Service Industries Journal, Taylor & Francis Journals, vol. 28(10), pages 1339-1356, December.
  • Handle: RePEc:taf:servic:v:28:y:2008:i:10:p:1339-1356 DOI: 10.1080/02642060802317812

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    References listed on IDEAS

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    Cited by:

    1. Andrés Zahler & Leonardo Iacovone & Aaditya Mattoo, 2014. "Trade and Innovation in Services: Evidence from a Developing Economy," The World Economy, Wiley Blackwell, vol. 37(7), pages 953-979, July.
    2. Lilian Santos & Aurora A.C. Teixeira, 2013. "Determinants of innovation performance of Portuguese companies: an econometric analysis by type of innovation and sector with a particular focus on Services," FEP Working Papers 494, Universidade do Porto, Faculdade de Economia do Porto.
    3. Andræs Barge-Gil, 2013. "Open Strategies and Innovation Performance," Industry and Innovation, Taylor & Francis Journals, vol. 20(7), pages 585-610, October.
    4. Yu-I Lee & Ching-Hsun Chang & Yu-Shan Chen, 2013. "The influence of novelty, flexibility, and synergy of package tours on tourist satisfaction: an analysis of structural equation modeling (SEM)," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(4), pages 1869-1882, June.
    5. Maria JOSE SILVA & Gastão SOUSA & Jacinta MOREIRA & Jorge SIMÕES, 2011. "Innovation Activities in the Service Sector: Empirical Evidence from Portuguese Firms," Journal of Knowledge Management, Economics and Information Technology,, vol. 1(6), pages 1-17, October.
    6. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Luisa Carvalho, 2011. "Market structures, strategy and innovation in services A study applied to the tourism sector," CEFAGE-UE Working Papers 2011_27, University of Evora, CEFAGE-UE (Portugal).
    8. Roberto Alvarez & Andres Zahler & Claudio Bravo-Ortega, 2013. "Innovation and Productivity in Services: Evidence from Chile," Working Papers wp384, University of Chile, Department of Economics.
    9. M. Audenaert & A. Vanderstraeten & D. Buyens, 2013. "Unleashing Employees’ Power to Innovate: Cross-level Effects of Employment Relationships and Job Complexity," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/836, Ghent University, Faculty of Economics and Business Administration.
    10. repec:spr:svcbiz:v:11:y:2017:i:3:d:10.1007_s11628-016-0321-6 is not listed on IDEAS
    11. Roberto Álvarez, 2016. "The Impact of R&D and ICT Investment on Innovation and Productivity in Chilean Firms," Working Papers wp428, University of Chile, Department of Economics.
    12. Fernandes, Cristina & Ferreira, João & Marques, Carla, 2011. "KIBS Innovation Management Capability in Rural Portuguese Regions: Empirical Evidence," MPRA Paper 47005, University Library of Munich, Germany.
    13. Fernandes, Cristina & Ferreira, João, 2011. "Knowledge Spillovers and Knowledge Intensive Business Services: An Empirical Study," MPRA Paper 34751, University Library of Munich, Germany.
    14. Chung-Jen Wang & Chang-Yen Tsai, 2014. "Managing innovation and creativity in organizations: an empirical study of service industries in Taiwan," Service Business, Springer;Pan-Pacific Business Association, vol. 8(2), pages 313-335, June.

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