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Innovation gap, performance gap and policy gap in the service economies

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  • Faridah Djellal

    () (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)

  • Faïz Gallouj

    (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)

Abstract

This work is devoted to an analysis of the innovation-performance relationship in contemporary developed economies. It reveals a double « gap » relating to innovation and performance. The « innovation gap » reflects the difference between the reality of innovation produced in an economy and what traditional innovation indicators (R&D, patents) capture. As for the « performance gap », this measures the difference between the reality of performance in an economy and the performance assessed by traditional economic tools (mainly productivity and growth). It reflects a hidden performance, invisible to these tools. These two « gaps » blur the innovation-performance relationship. They are behind a certain number of paradoxes which this work intends to explain, and they lead one to question the legitimacy of some public policies which support innovation.

Suggested Citation

  • Faridah Djellal & Faïz Gallouj, 2009. "Innovation gap, performance gap and policy gap in the service economies," Working Papers hal-01111800, HAL.
  • Handle: RePEc:hal:wpaper:hal-01111800
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01111800
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    References listed on IDEAS

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    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Faridah Djellal & Faïz Gallouj, 2006. "Innovation in care services for the elderly," The Service Industries Journal, Taylor & Francis Journals, vol. 26(3), pages 303-327, April.
    3. Faridah Djellal & Faïz Gallouj, 2007. "Les services publics à l'épreuve de la productivité et la productivité à l'épreuve des services publics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 2-2.
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    7. Faridah Djellal & Dominique Francoz & Camal Gallouj & Faïz Gallouj & Yves Jacquin, 2003. "Revising the definition of research and development in the light of the specificities of services," Science and Public Policy, Oxford University Press, vol. 30(6), pages 415-429, December.
    8. Faridah Djellal & Faïz Gallouj, 1999. "Services and the search for relevant innovation indicators: a review of national and international surveys," Science and Public Policy, Oxford University Press, vol. 26(4), pages 218-232, August.
    9. Faïz Gallouj, 2002. "Innovation in the service economy: the new wealth of nations," Post-Print halshs-00198409, HAL.
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    12. Faïz Gallouj, 1998. "Innovating in reverse: services and the reverse product cycle," Post-Print halshs-01114103, HAL.
    13. Faridah Djellal & Faïz Gallouj, 2008. "Measuring and Improving Productivity in Services," Books, Edward Elgar Publishing, number 12734, June.
    14. Andrew Davies, 2004. "Moving base into high-value integrated solutions: a value stream approach," Industrial and Corporate Change, Oxford University Press, vol. 13(5), pages 727-756, October.
    15. Jean Gadrey & Faïz Gallouj, 1998. "The Provider-Customer Interface in Business and Professional Services," The Service Industries Journal, Taylor & Francis Journals, vol. 18(2), pages 01-15, April.
    16. Faridah Djellal & Faïz Gallouj, 2001. "Patterns of innovation organisation in service firms: postal survey results and theoretical models," Science and Public Policy, Oxford University Press, vol. 28(1), pages 57-67, February.
    17. Niehans, Jurg, 1983. "Financial innovation, multinational banking, and monetary policy," Journal of Banking & Finance, Elsevier, vol. 7(4), pages 537-551, December.
    18. Sundbo, Jon & Orfila-Sintes, Francina & Sorensen, Flemming, 2007. "The innovative behaviour of tourism firms--Comparative studies of Denmark and Spain," Research Policy, Elsevier, vol. 36(1), pages 88-106, February.
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    Cited by:

    1. Cristina Fernandes & João Ferreira & Carla Marques, 2015. "Innovation management capabilities in rural and urban knowledge intensive business services: empirical evidence," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 233-256, June.
    2. Kirsi Hyytinen & Sampsa Ruutur & Mika Nieminen & Faïz Gallouj & Marja Toivonen, 2014. "Evaluation of services linked to the sustainability: a dynamic and multi-criteria approach," Post-Print hal-01111817, HAL.
    3. Faridah Djellal & Faïz Gallouj, 2015. "Taking into account hidden innovation in innovation networks: the role of public-private innovation networks in services," Working Papers halshs-01191137, HAL.
    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. Faridah Djellal & Faïz Gallouj, 2010. "Services, innovation and performance: general presentation," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 5-15.
    6. 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.

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    Keywords

    public policy; services; performance; innovation;

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