The case of market and system failures in services innovation |
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Authors: | Luis Rubalcaba Jorge Gallego Pim Den Hertog |
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Institution: | 1. Department of Applied Economics , Universidad De Alcala , Plaza De La Victoria 2, Alcala De Henares, 28802, Spain luis.rubalcaba@uah.es;3. Department of Applied Economics , Universidad De Alcala , Plaza De La Victoria 2, Alcala De Henares, 28802, Spain;4. Centre for Services Innovation, Amsterdam Business School , University of Amsterdam , Amsterdam, 1018 WB, The Netherlands |
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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. |
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Keywords: | services sector innovation policy market failures system failures European Union |
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