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MBS CENTRE FOR SERVICE RESEARCH UNIVERSITY OF MANCHESTER 22 APRIL 2009

MBS CENTRE FOR SERVICE RESEARCH UNIVERSITY OF MANCHESTER 22 APRIL 2009. Service Innovation and Performance: What is the Role of Government? Allan Mayo Service Policy Unit BERR. Two initial hypotheses. (i) Innovation intensity in services depends on

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MBS CENTRE FOR SERVICE RESEARCH UNIVERSITY OF MANCHESTER 22 APRIL 2009

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  1. MBS CENTRE FOR SERVICE RESEARCHUNIVERSITY OF MANCHESTER 22 APRIL 2009 Service Innovation and Performance: What is the Role of Government? Allan Mayo Service Policy Unit BERR

  2. Two initial hypotheses (i) Innovation intensity in services depends on • Size of the market opportunity or threat • Flexibility/openness of the regulatory & business framework, which incentivises innovation • A network of informed suppliers and buyers • Access to an advanced ICT infrastructure • Rate of change of underpinning technologies • Strategic, management, and workforce skills to handle change • Availability of capital

  3. Two initial hypotheses (ii) Individual Business success depends upon: • Market Identification • Speed of Response/Flexibility • Availability/Scalability • Quality/Price • Credible Business/Revenue Model

  4. Size of the market opportunity • Not difficult to identify the most important areas or the ones where Government has a clear role…………

  5. Societal challenges - Environment “Climate change is the world's greatest environmental challenge”

  6. Societal challenges - Population

  7. Societal challenges – “Moving people and things”

  8. Societal challenges – the built environment

  9. Services Sector GVA and GVA/Job, 2006

  10. Developments in Technology, particularly ICT, a key driver of innovation

  11. Informed consumers lie behind the explosion in innovation

  12. Size of the market opportunity

  13. Government creating new opportunities

  14. The emerging global middle class Millions

  15. But typically public services are highly complex services at the end of complex value chains………….

  16. Disparate policy interventions Regulations Standards R&D & technology Market information Skills Develop, disseminate best practice Public procurement

  17. The challenge

  18. How to “pull it all together”? Develop, disseminate best practice, R&D & technology Regulations Standards Market information Skills Public procurement

  19. Assisted Living Innovation Platform 2007 - 2012 Knowledge KNOWLEDGE TRANSFER AND STANDARDS ALIP KT (running) OBJECTIVE: Large scale New technology Demonstrator Standards? SHORT TERM R&D Home based systems & UCD (running) SCDE (running) LONG TERM R&D Business & Economic modelling Social and Behavioural studies EXTERNAL to ALIP: Whole Systems Demonstrators 2007 2008 2009 2010 2011 2012

  20. The power of roadmapping • A roadmap to where?............clear objectives • Guided by whom?..........leadership/ownership • Barriers to progress?......Consider Options/Innovation • Priorities for action by whom?.....accountability and dependencies • Key points en route…………clear milestones/timelines • Who says so?.........transparency/debate • PROVIDES THE BASIS FOR A CO-ORDINATED APPROACH

  21. The power of demonstration • Large Scale Demonstrators are the Laboratory of the Service Economy

  22. Demonstrators inform Government Procurement • clear joint objectives • mutual understanding • developing ongoing relationship • appropriate risk sharing • opportunities for innovation • flexibility

  23. A new “industrial activism” A strategic vision for UK economic recovery: • Adapt, strengthen general competitiveness policies • Influence market in new, more strategic way • New approach to targeted interventions: high growth areas, major technological change http://www.berr.gov.uk/files/file51023.pdf

  24. Conclusions If my 2 hypotheses are right, the role of Government is to: • provide a high speed, reliable ICT infrastructure and ensure UK firms have access to latest technological developments/applications • provide a framework which brings together the different stakeholders and facilitates a shared perspective, particularly where Government is a key actor • promote better understanding of the challenges we face and potential solutions through demonstration, and then follow up with procurement • ensure openness and flexibility of markets, not only through competition policy but also standards • encourage development of relevant skills for an i-enabled, service oriented economy • improve the availability of funding to support innovation and risk • AND IF EUROPE WISHES TO REMAIN COMPETITIVE THEN WE NEED TO CONSIDER THIS ON A EUROPEAN SCALE

  25. For further details: http://sigs.intelligus/ portal/site/sigs/?mode=0 • allan.mayo@berr.gsi.gov.uk • http://www.berr.gov.uk/whatwedo/sectors/innovationinservices/index.html

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