Innovation in Services

On 28 August 2008 the project report 'Supporting innovation in services' was published by BERR, jointly with DIUS.

This project’s objective was, in recognition of the increasing importance of services in the UK economy, to look at what Government could do to stimulate and support innovation in and across service sectors.

BERR led this project, working in partnership with the National Endowment for Science, Technology and the Arts (NESTA), and closely with DIUS. BERR also collaborated with a range of other Government Departments, the Technology Strategy Board and BSI British Standards.

The project report is based on a consultation of business in five sectors of the economy to develop a better understanding of what is driving innovation in service sectors, how innovation is developed and managed by leading firms, the barriers to innovation and the role Government might play in improving the UK environment for innovation in services.

The project focused on five service sectors, selected to provide a range of insights into innovation in a service orientated economy (and accounting for roughly a quarter of the UK economy), and specifically, the scope for effective Government intervention. Business groups from each of these sectors were asked to help identify key areas of service innovation and how the Government could best support these. Researchers commissioned by NESTA worked with these groups and produced sector reports on retail, logistics, environmental services, internet delivered content services, whilst BERR Construction Unit contributed one on construction services. These reports were subsequently validated more widely and alongside wider economic analysis, provide the evidence base for the project’s main report.

The project report includes both general and sector-specific analysis and an action plan for follow up. The executive summary provides an overview. BERR is now leading and coordinating implementation of the report, working with others across Government, as well as with the business community and others.

The project identifies a number of key themes to be addressed for businesses to compete with the best in service provision. It outlines Government actions in areas including

  • The openness and flexibility of markets, driven by information and standards;
  • Underpinning technology developments, and the efficacy of knowledge exchange with the business community;
  • The ability to transform business processes and business models in the face of technology and market developments;
  • Sustainability;
  • Benchmarking and measuring the capacity to innovate; and
  • Finance for start-ups.

For further information on this project contact:
Chris Tollady
0207 215 1672
chris.tollady@berr.gsi.gov.uk