Endorsements	5
	Preface	11
	Acknowledgment	18
	Contents	19
	Authors’ Biography	23
	Part I Innovation Definitions, GovernanceStructure, and Literature	39
	1 Innovation: A Critical Assessment of the Concept and Scope of Literature	42
	Abstract	42
	1 Introduction	42
	2 What Is Innovation?	43
	3 Type of Innovation	46
	4 Degree of Innovativeness	49
	5 Dimensions: Individual---Group---Network	50
	6 Antecedents of Innovation	53
	7 The Specificity of Service Innovation	54
	8 Problems in Innovation Research	57
	9 Conclusion	58
	Acknowledgments	59
	References	59
	2 Service Innovation: A Review of the Literature	63
	Abstract	63
	1 Background	64
	2 Service Innovation: An Overview	65
	2.1 Service Innovation and Its Characteristics	65
	2.2 Classification of Service Innovation	67
	3 The Dynamic and Systemic Process of Service Innovation	69
	3.1 Service Design and New Service Development	69
	3.2 Open and Collaborative Processes of Service Innovation	70
	3.3 Customer as a Co-creator of Service Innovation	71
	3.4 Systemic Diffusion of Innovation Through Service Value Networks	72
	4 Management of Service Innovation	74
	4.1 Dynamic Capability Building for Service Innovation	74
	4.2 Managing Organizational Knowledge and Learning for Service Innovation	75
	4.3 Creating an Organizational Culture for Service Innovation	76
	4.4 Measurement of Service Innovation and Its Outcomes	77
	5 Conclusion	79
	References	79
	3 Open Service Innovation: Literature Review and Directions for Future Research	88
	Abstract	88
	1 Introduction	88
	2 Alliances and Service Innovation	89
	2.1 Innovation Outcomes	90
	2.2 Alliance Structure	91
	2.3 Partner Characteristics	92
	2.4 Partner Interaction	93
	2.5 Active Innovation Management	94
	3 Alliance Portfolio and Service Innovation	94
	3.1 Innovation Outcomes	94
	3.2 Portfolio Configuration	96
	3.3 Partner Characteristics	96
	3.4 Partner Interaction	97
	3.5 Active Innovation Management	97
	4 Alliance Network and Service Innovation	98
	4.1 Innovation Outcomes	98
	4.2 Network Structure	100
	4.3 Partner Characteristics	100
	4.4 Partner Interaction	101
	4.5 Active Innovation Management	102
	5 Discussion and Conclusion	103
	5.1 A Multi-level Framework of Open Service Innovation	103
	5.2 Future Research Topics	104
	5.3 Conclusion	105
	References	106
	4 Towards an Understanding of Open Innovation in Services: Beyond the Firm and Towards Relational Co-creation	110
	Abstract	110
	1 Introduction	111
	1.1 Service Trends	111
	1.2 Complex Environments and Wicked Problems	112
	2 Service Innovation and the Design Thinking Process	113
	2.1 Service Innovation in a Relational Value Network	113
	2.2 Service Innovation Through a Design Thinking Process	114
	3 Open Service Innovation---A Conceptual Framework for Services Innovation Co-creation	115
	3.1 Open Innovation	115
	3.2 Open Service Innovation	116
	4 Cases of Service Innovation Co-creation	118
	4.1 Competitive Co-creation	118
	4.1.1 Open IDEO: Co-created Professional Services	119
	4.2 Community-Based Competition Co-creation	119
	4.2.1 Threadless Case: Co-created Product Design	120
	4.3 Open Source Co-innovation	120
	4.3.1 Wikipedia Case	121
	4.4 Service Exchange as Open-Creation	121
	5 Dimensions of Co-creation Services and Implications for Firm Performance	122
	6 Conclusion	123
	References	123
	5 Exploring a Multidimensional Approach to Service Innovation	126
	Abstract	126
	1 Introduction	127
	2 The Challenge of Characterizing Service Innovation	128
	2.1 A Multidimensional Approach to Services	130
	2.2 Unexploited Potential of a Multidimensional Approach to Service Innovation: An Hypothesis About Radical Change	132
	3 An Empirical Assessment of Radical Multi-dimensional Changes	134
	3.1 Measuring Service Innovation Dimensions	134
	3.2 Dimensionality Versus Market Success	135
	4 The Future of Multidimensional Conceptualizations	137
	5 Conclusion	140
	References	141
	6 Innovation, Service Types, and Performance in Knowledge Intensive Business Services	144
	Abstract	144
	1 Introduction	144
	2 Service Innovation in KIBS	145
	3 The Relationship Between Service Innovation and Service Types	146
	4 The Complementarity Between KIBS Customization and Standardization/Modularization	148
	5 Causality Redefinition Through the Configurational Approach	149
	6 Outcomes from a Fuzzy Set Qualitative Comparative Analysis (fs/QCA)	150
	7 Managerial Implications	152
	8 Conclusion	154
	Acknowledgments	154
	References	154
	Part IISkills and Capability Buildingin Service Innovation	157
	7 On the Way to a Systematic Service Innovation Competence Framework	160
	Abstract	160
	1 The Relevance of Service Innovation Competences	160
	2 Service Innovation Competences and Systematic Service Innovation	162
	3 Developing a Service Innovation Competence Framework	164
	3.1 Necessity of Developing a Framework	164
	3.2 Theoretical Foundation	164
	3.2.1 Resource-Based View and Competence-Based Perspective	165
	3.2.2 The Service-Dominant-Logic Perspective	167
	3.2.3 Developing Crucial Categories of Competences	168
	3.3 Empirical Findings: A Pilot Case Study	168
	3.4 Developing a Framework for Crucial Service Innovation Competences	170
	3.4.1 Category of Employee Competences	170
	3.4.2 Category of Organizational Competences	171
	3.4.3 Category of Network Competences	171
	3.4.4 Category of Community Competences	172
	4 Practical Implications	173
	5 Conclusion	174
	5.1 Implications for Further Research	174
	References	174
	8 Service Innovation Capabilities for Idea Assessment: An Appraisal of Established and Novel Approaches	178
	Abstract	178
	1 Introduction	179
	2 Idea Assessment in Service Innovation Capabilities Frameworks	181
	3 Cornerstones of Service Idea Assessment	184
	3.1 Assessment Criteria	185
	3.2 Information Sources	186
	3.3 Assessment Group Composition and Assessment Perspective	187
	3.4 Assessment Approach	188
	3.5 Summary Discussion	191
	4 Novel Approaches to Idea Assessment in Service Firms	191
	4.1 Serious Games	192
	4.2 Enterprise Crowdfunding	194
	5 Conclusion	196
	References	197
	9 Employees and Users as Resource Integrators in Service Innovation: A Learning Framework	201
	Abstract	201
	1 Introduction	202
	2 Perspectives on User-Driven and Employee-Driven Innovation in Services	203
	2.1 User-Driven Views on Innovation	204
	2.2 Employee-Driven Views on Innovation	204
	2.3 A Need for an Integrative Perspective	205
	3 Service-Dominant Logic Applied in the Innovation Framework	206
	3.1 Short Summary of the Core Propositions of S-D Logic	206
	3.2 Linkages of S-D Logic to Innovation	207
	4 Effectuation and Bricolage as Frameworks to Tackle the Uncertainties in Innovation	208
	5 Development of Value Co-creation: The Theory of Expansive Learning	209
	6 Integration of Resources as a New Perspective in Innovation Management	210
	7 Learning-Based Resource Integration in Practice: Two Case Examples	211
	7.1 Invisibility of the Creation and Use of Resources as an Analytical Challenge	211
	7.2 Data and the Case Study Methodology	212
	7.3 Results: Development of Resource Integrator Roles and the Co-creation of use Value in Two Cases	214
	7.3.1 Elderly Day Club: Emergence of Collaborative Resource Integration of Employee and Elderly	215
	7.3.2 Forest Preschool: Emergence of Collaborative Resource Integration of Employees, Managers, Children, and Parents	216
	7.3.3 Summary of the Two Cases in the Critical Phase of Resource Integration	217
	8 Conclusion	219
	References	221
	10 Foresight and Service Design Boosting Dynamic Capabilities in Service Innovation	225
	Abstract	225
	1 Introduction	225
	2 Service-Logic-Based Innovation Calls for New Capabilities	228
	3 Why Are Futures Thinking and Design Thinking Needed in Service Innovation?	230
	3.1 Principles of Futures Thinking	230
	3.2 Principles of Design Thinking	232
	3.3 Synergies Between Futures Thinking and Design Thinking	233
	4 A New Framework: Service Innovation Process Grounded on Foresight and Service Design	234
	4.1 Phase 1: Map and Understand	235
	4.2 Phase 2: Forecast and Ideate	236
	4.3 Phase 3: Model and Evaluate	237
	4.4 Phase 4: Conceptualize and Influence	239
	5 Conclusion	240
	References	241
	11 Employment and Skill Configurations in KIBS Sectors: A Longitudinal Analysis	245
	Abstract	245
	1 Introduction	245
	2 Knowledge-Intensive Business Services	246
	2.1 Background	246
	2.2 Main Drivers of KIBS Growth	247
	2.2.1 Outsourcing	248
	2.2.2 New Technology	249
	2.2.3 Regulation and Globalization	249
	2.3 Shifting Perspectives on Knowledge Services	250
	3 Heterogeneity and Sectoral Diversity	253
	4 KIBS Employment and Skills	255
	4.1 Data Description	255
	4.2 Employment Structure	256
	4.3 Skill Configurations	259
	5 Conclusion	262
	References	264
	12 Dynamic Capabilities for Service Innovation in Service Systems	268
	Abstract	268
	1 Role of Human Capital in Skills and Capability Building	269
	2 The Role of Networks in Partnering Organizations	270
	3 Service Innovation in a Service System	270
	3.1 Service Innovation as an Elevated Service Offering	273
	4 Dynamic Capabilities Needed to Build Service Innovation	273
	4.1 Organizational Relationship Capital	275
	4.2 Collaborative Organizational Learning	275
	4.3 Customer Engagement	276
	4.4 Entrepreneurial Alertness	276
	4.5 Collaborative Agility	276
	4.6 Collaborative Innovative Capacity	277
	5 Conclusions	277
	References	278
	Part IIITechnological Developmentsin Service Innovation	281
	13 Role of Web 3.0 in Service Innovation	283
	Abstract	283
	1 Introduction	283
	1.1 Benefits of Web 3.0	284
	1.2 What Makes Web 3.0 Different	285
	2 Drivers of Innovation	288
	3 Technology Enablers for Innovation	289
	3.1 Web 1.0	291
	3.2 Web 2.0	292
	3.3 Web 3.0	295
	4 Web 3.0 Driving Innovation	297
	4.1 Asian Innovation	298
	4.2 The Value Proposition	299
	4.3 Semantic Innovation Management	299
	4.4 Emergent Analytics	300
	4.5 Semantic Analytics: The Capability to Ask More Complex Questions	301
	4.6 Open Data	301
	4.7 Smarter Computing Through Web 3.0	302
	4.8 The Potential of Semantic Technologies	304
	4.9 Innovating Societal Norms?	305
	4.10 Innovation of Personal Search: Telling Customers What to Do	306
	4.11 Innovation for Manufacturing	306
	5 E-Science as the Talent Enabler	307
	6 Conclusion	307
	References	307
	14 Service-Oriented Architecture as a Driver of Dynamic Capabilities for Achieving Organizational Agility	311
	Abstract	311
	1 Introduction	311
	2 Service-Oriented Architecture and Dynamic Capabilities	313
	3 An Analytical Framework of SOA as an Enabler of Dynamic Capabilities	314
	3.1 Integration of Internal Assets	315
	3.2 Integration of External Resources	316
	3.3 Rapid Product Development	316
	3.4 Learning	316
	3.5 Creation of Assets	317
	4 Empirical Assessment of the SOA-DC Conceptual Framework	317
	4.1 Integration of Internal Assets	318
	4.2 Integration of External Resources	319
	4.3 Rapid Product Development	320
	4.4 Learning	320
	4.5 Creation of Assets	321
	5 Conclusion	321
	References	324
	15 Disruptive Digital Innovation in Healthcare Delivery: The Case for Patient Portals and Online Clinical Consultations	327
	Abstract	327
	1 Introduction	328
	1.1 Service Innovation in Health Care	328
	1.1.1 Types of Innovations in Healthcare Delivery	328
	1.1.2 Theories of Service Innovation	329
	1.1.3 Digital Innovations in Health Care	330
	1.1.4 Disruptive Innovations in Primary Care	331
	2 Patient Portal	332
	2.1 What Is a Patient Portal?	332
	2.2 Patient Portal and Service Innovation	333
	2.3 Examples of Patient Portals	334
	3 Online Medical Consultation	335
	3.1 What Are Online Medical Consultations?	335
	3.2 Current Practice	336
	3.3 Analogy to Other Industries	338
	4 Secure and Structured eVisit and Patient Portal	339
	5 Future of Medical Service in Primary Care Setting	342
	5.1 Multiple Models of Online Care Delivery	342
	5.2 Barriers and Solutions	344
	References	345
	16 Technology-Driven Service Innovation in the Banking Industry	349
	Abstract	349
	1 Introduction	349
	2 Overview of the Banking Industry in Australia	351
	3 Financial Deregulation and Technological Change	354
	4 Service Innovation within the Banking Industry	360
	4.1 Service Innovation	361
	4.2 Innovation in Service Products	362
	4.2.1 Case Study: EFTPOS and Smart Phone Adaptation	362
	4.3 Innovation in Service Processes	363
	4.3.1 Case Study: Internet Banking	363
	4.4 Security Issues with Innovation	365
	5 The Future of Banking	366
	5.1 Innovations in Banking	366
	5.2 How Should Banks Respond to Technological Change?	368
	5.3 Barriers to Innovation?	369
	6 Conclusion	370
	References	370
	Part IVDesigning Service Innovation	374
	17 Systemic Development of Service Innovation	377
	Abstract	377
	1 Introduction	378
	2 Characteristics of Services and Service Innovations	378
	2.1 The Front End and the Back End	380
	3 Toward a Systemic Development of Service Innovation	381
	4 Understanding Service Systems	383
	4.1 Service Matrixes	384
	5 Developing Service Strategies and Business Models	386
	5.1 Challenges in Service Business Model Development	389
	5.1.1 The Scope and Scale of Services	389
	5.1.2 Service Platforms and Internet Business Models	390
	6 Creating New Meanings Through Service Design	391
	6.1 Design Thinking and Radical Service Innovation	392
	7 Conclusion	395
	References	397
	18 The Role of Socio-Technical Experiments in Introducing Sustainable Product-Service System Innovations	400
	Abstract	400
	1 Introduction	400
	1.1 Transition Toward Sustainability and the Need of Radical Innovations	400
	1.2 Product-Service System Innovation as a Promising Model for Sustainability	401
	1.3 Research Challenge	402
	1.4 Chapter Organization	403
	2 The Challenge of Implementing Sustainable Product-Service System Innovations	404
	3 Insights from Transition Studies	405
	3.1 Dynamics in Socio-Technical Transitions	405
	3.2 The Role of Socio-Technical Experiments in Triggering Radical Innovations	406
	4 Research Questions and Approach	409
	5 Implications for PSS Design and Management	411
	5.1 Cape Town Sustainable Mobility Project	411
	5.1.1 Project Background	411
	5.1.2 Incubation	412
	5.1.3 Socio-technical experimentation	414
	5.1.4 Main Intermediate Project Results and Next Steps	419
	5.2 A New Design and Management Approach: Designing Transition Paths and Socio-Technical Experiments	419
	6 Conclusion	425
	References	426
	19 Servitization as Innovation in Manufacturing---A Review of the Literature	429
	Abstract	429
	1 Concept Introduction	430
	2 Why Do Firms Servitize?	430
	3 Servitization as Innovation in Manufacturing Firms	435
	4 What Services to Offer?	443
	5 How to Servitize	446
	6 Challenges in Servitizing	453
	7 Conclusions	453
	References	454
	20 The Architecture of Service Innovation	462
	Abstract	462
	1 Prolegomena	462
	2 The Innovator's Lens	463
	2.1 Understanding Service Innovation Through the Lens of Architecture	464
	2.2 Structure: Approach	465
	2.3 Foundation: From Products and Services to Architecture	466
	2.3.1 Architecture as a Product	466
	2.3.2 Architecture as a Service	466
	2.3.3 Architecture as a Bifocal Lens	468
	3 What the Greeks Knew	468
	3.1 The Parthenon: A Service Innovation	469
	3.2 Services as Instruments for Experience	470
	4 What the Romans Knew	470
	4.1 (Firmitas) Structure and Sustainability	471
	4.2 (Commoditas) Function	473
	4.3 (Venustas) Experience	473
	5 Five Models for Service Design and Innovation	474
	5.1 The Primacy of Effect and Experience	474
	5.2 The Fetish of Structure/Process/Systems	475
	5.3 The Primacy of Power and Sequence	476
	5.4 Dynamic Experience	477
	5.5 Structure and Skin	478
	6 Conclusion	479
	References	479
	21 Innovation or Resuscitation? A Review of Design Integration Programs in Australia	482
	Abstract	482
	1 Introduction	483
	1.1 The Changing Role of the Designer	483
	2 Design Integration	486
	2.1 What Is Design Integration?	486
	2.1.1 The Problem of Evaluation	486
	3 Identifying International Best-Practice	487
	3.1 Europe	487
	3.1.1 Denmark	487
	3.1.2 United Kingdom	488
	3.2 Asia Pacific	488
	3.2.1 Asia	488
	3.2.2 New Zealand	489
	4 Design Integration Programs in Australia: A Case Study	490
	4.1 Victoria	492
	4.1.1 Victorian Design Integration Policy Discourse	492
	4.1.2 Victoria's Design Integration Program Objectives and Delivery Method	492
	4.1.3 Current Status of Victoria's Design Integration Program	494
	4.2 Design Integration Initiative in Queensland	495
	4.2.1 Queensland's Design Integration Program Objectives and Delivery Method	496
	4.2.2 Current Status of Design Integration Programs in Queensland	497
	4.3 Design Integration Programs in New South Wales and South Australia	498
	4.3.1 Current Status of the Program	499
	5 Conclusion	499
	References	502
	22 Service Innovation Through an Integrative Design Framework	505
	Abstract	505
	1 Introduction	505
	2 Conceptual Building Blocks	507
	2.1 Process for Capabilities Integration	507
	2.2 Value Co-creation in a Digital Ecosystem	507
	2.3 Customer Centricity for Service Excellence	508
	3 Proposed Integrative Service Design Framework	509
	3.1 Service Strategy	510
	3.2 Service Concept	510
	3.3 Service Design	511
	3.4 Customer Experience	513
	3.5 Service Architecture	515
	4 Exemplar Integrative Service Design Practices	517
	5 Conclusion	521
	References	522
	23 Services Innovation in a Circular Economy	525
	Abstract	525
	1 Introduction	526
	2 Concepts Captured by the Circular Economy	526
	3 Identifying Services: Minimising and Value Adding	528
	4 Environmental Sustainability	529
	5 Product-Service Systems and the Circular Economy	531
	6 Service Development Frameworks	534
	7 Sustainability and Business Models	535
	8 Conclusions	538
	References	539
	Part VManagement Issues in ServiceInnovation	545
	24 Illuminating the Service Provider's Strategic Mandate on Realizing Apt Quality and Value Through Service Innovation	547
	Abstract	547
	1 Introduction	547
	2 Service Innovation, New Service Development, and Service Operations Management Logic	549
	3 The Symphony Orchestra: A Context for Studying Service Innovation Management	552
	4 Research Method	554
	5 Research Findings to Advance Service Innovation Understanding and Theorization	555
	6 Conclusion	564
	References	565
	25 Co-creative Practices in Service Innovation	568
	Abstract	568
	1 Introduction	569
	2 Co-creative Practices in Insight Generation	572
	2.1 Co-creative Character 1: Improvisation in Insight Generation	573
	2.2 Co-creative Character 2: Staging Events for Insight Generation	573
	2.3 Co-creative Character 3: Playfulness in Insight Generation	574
	2.4 Co-creative Method/Tool 1: Probes in Insight Generation	575
	2.5 Co-creative Method/Tool 2: Contextmapping in Insight Generation	575
	2.6 Co-creation Example 1: Seeking Insights from the Context with Probes	576
	2.7 Co-creation Example 2: Improvised Scenarios in Use Context	577
	2.8 Co-creation Example 3: Changing Roles While Improvising	578
	2.9 Co-creation Example 4: Insight Generation Through Storytelling	579
	2.10 Summing up Insight Generation	580
	3 Co-creative Practices in Concept Exploration and Development	581
	3.1 Co-creative Character 4: Reflective Dialogue in Concept Exploration	581
	3.2 Co-creative Character 5: Situating Events for Concept Exploration	582
	3.3 Co-creative Method/Tool 3: Speed Sketching in Concept Exploration	582
	3.4 Co-creative Method/Tool 4: Magical Things in Concept Exploration	583
	3.5 Co-creation Example 5: Dialogue-Labs as Settings for Exploring Augmented Mood Boards	583
	3.6 Co-creation Example 6: Cardboard Hospital for Prototyping Patient-Centric Environments and Services	584
	3.7 Co-creation Example 7: Design Games as Setting for Concept Development	584
	3.8 Summing up Concept Exploration	585
	4 Co-creative Practices in Converging Towards a Specification	585
	4.1 Co-creative Character 6: Open-Ended Interpretation	586
	4.2 Co-creative Character 7: Prototyping Service	586
	4.3 Co-creative Method/Tool 5: Service Walkthrough	587
	4.4 Co-creative Method/Tool 6: Experience Prototypes	588
	4.5 Co-creative Example 8: Design Probes as Experience Prototypes	588
	4.6 Co-creative Example 9: Feeding Milan---Scenarios as Open-Ended Prototypes	589
	4.7 Co-creative Example 10: Co-designing a Project Plan	589
	4.8 Summing up Converging Towards Specification	590
	5 Co-creative Practices in Transformative and Implementation Processes	590
	5.1 Co-creative Character 8: Capacity Building	591
	5.2 Co-creative Character 9: Transformative Platforms	591
	5.3 Co-creative Example 11: Design Games as a Co-creative Structure to Organise and Facilitate Cross-Functional Collaboration and Ideation	591
	5.4 Co-creative Example 12: Co-designing a Design Game for Involving Citizens in City of Vantaa	592
	5.5 Co-creative Example 13: A Co-creative Tool Becomes Part of Everyday Processes	592
	5.6 Summing up Transformation and Implementation	593
	6 Conclusion	593
	References	594
	26 Managing Online User Co-creation in Service Innovation	598
	Abstract	598
	1 Introduction	599
	2 User Co-creation and Online Service Innovations Tools	599
	3 The Framework of Capabilities and Online Service Innovation Tools	600
	3.1 The Three Online Service Innovation Capabilities	601
	3.2 Online Service Exploration Capability	602
	3.3 Online Service Conversion Capability	603
	3.4 Online Service Exploitation Capability	605
	4 Innovation World: A Case of Online Service Innovation	605
	4.1 The Creation of New Online Innovation Capabilities and Reconfiguring of Existing Capabilities	609
	5 Conclusion	610
	References	611
	27 Practices for Involving Organizational Customers in Service Innovation	613
	Abstract	613
	1 Introduction	613
	2 Innovation in the Light of Service-Dominant Logic	614
	2.1 From Innovation in Products and Services to Service Innovation	614
	2.2 Innovating New Forms of Value Co-creation	616
	3 Open Innovation and Customer Involvement	617
	3.1 From In-House Innovation to Collaborative Innovation	617
	3.2 Changing Innovation Practices	618
	4 Methodology	620
	4.1 Research Approach and Trustworthiness	620
	4.2 Data Collection and Analysis	621
	5 Findings	623
	5.1 Practices for Customer Involvement in Service Business Development	623
	5.2 In-House Development and Supplier Cooperation	623
	5.2.1 Development Based on Customer Insight	624
	5.2.2 Co-development with Customers	625
	5.2.3 Development by Customers	626
	5.3 The Use of Customer Involvement Practices	627
	5.3.1 Shaping the Context of Value Co-creation	627
	5.3.2 Fostering Network Effects	628
	5.3.3 Living with Contingency	628
	5.3.4 Engaging in Business with Meaning	629
	5.4 Summary of Findings	630
	6 Discussion	630
	6.1 Theoretical Implications	634
	6.2 Practical Implications	635
	7 Conclusion	635
	7.1 Limitations and Further Research	635
	Acknowledgments	636
	References	636
	Part VIInternational Dimensions of ServiceInnovation	638
	28 Services Offshoring: Location Choice and Subnational Regional Advantages in China	641
	Abstract	641
	1 Introduction	641
	2 Service Offshoring and Service Innovation	643
	3 Location Selection in Service Offshoring	646
	3.1 Location Determinants of Service Offshoring Activities	646
	3.2 From National Advantages to Subnational Regional Advantage	650
	4 Location of Offshoring Services in Chinese Cities	653
	5 Conclusion	657
	References	658
	29 Innovative Strategies in Servicing International Markets from Ireland	661
	Abstract	661
	1 Introduction	661
	2 Globalisation and Transnational Networks	663
	3 Offshoring and Fragmenting Value Chains	666
	4 The Evolving Model of Servicing International Markets	667
	5 Competing for Inward Investment	668
	6 Innovative Tax Strategies	670
	7 Ireland's Emerging Internationally Traded Services Sector	671
	8 Company Case Studies	675
	9 EMEA Servicing and Subsidiary Evolution	675
	10 Conclusion	678
	References	679
	30 Leveraging Value Across Borders---Do `Market Place Interactions' Trump `Market Space Transactions'?: Evidence from Australian Firms in Industrial Markets	682
	Abstract	682
	1 Leveraging Value Across Borders---Do `Market Place Interactions' Trump `Market Space Transactions'?: Evidence from Australian Firms in Industrial Markets	683
	1.1 Introduction	683
	1.2 Services and Embedded Services	684
	1.2.1 Services and Internationalization	686
	1.3 Research Method	688
	1.4 Overview of Results	690
	1.4.1 Case Study 1	690
	1.4.2 Case Study 2	691
	1.4.3 Case Study 3	692
	1.4.4 Case Study 4	693
	1.5 Discussion	695
	1.6 Conclusion	696
	References	697
	31 Frugal Services Innovation---Lessons from the Emerging Markets and an Adoption Framework for First-World Corporations and Governments	701
	Abstract	701
	1 Introduction	702
	2 Innovation	703
	2.1 Emerging Challenge to Innovation	703
	2.2 Emerging Response to the Innovation Challenge	704
	3 Motivation for Frugal Innovation	705
	3.1 The Concept and Phenomenon of Frugal Innovation	706
	3.2 Frugal Innovation as a Competitive Advantage	707
	4 The Concept of Reverse Innovation	708
	4.1 Impact of Reverse Innovation on Developed Economies	708
	4.2 Frugal Innovation and the Changing Dynamics of Resource Allocation	709
	5 Frugal Innovation in Services	710
	6 Adoption Framework for the Developed Economies	711
	6.1 Model for Organizations to Develop and Deploy Frugal Innovations	712
	6.2 Application of the Innovation Model in the Management of Frugal Services	716
	7 Conclusion	718
	References	718
	Part VIIService Innovation in the GovernmentSector	721
	32 How to Manage a Service Innovation Process in the Public Sector: From Co-Design to Co-Production	724
	Abstract	724
	1 Introduction	724
	2 User-Driven Innovation	726
	2.1 Traditional Way to Participate in Decision Making on Services	726
	2.2 A New Way to Participate in Decision Making on Services Through Service Co-Design and Co-Production	727
	2.2.1 Discovery Phase	728
	2.2.2 Creation Phase	728
	2.2.3 Reality Check Phase	729
	2.2.4 Implementation Phase	729
	3 Case Study of Co-Design Services: The Lauttasaari Project	729
	3.1 Design Probe as a Tool to Understand the Daily Life of the Customer	730
	3.2 Services Based on Customers' Needs	731
	3.3 Enabling Customers to Make Final Decisions on Services	732
	4 Change Management	733
	4.1 Theoretical Background	733
	4.2 User-Driven Innovations as Change Drivers	736
	4.3 The Lauttasaari Project Revisited: Decision Making, Change Management, and Innovation	737
	4.4 The Lauttasaari Project as a Change Process	738
	4.5 Lauttasaari Project as an Innovation Process	739
	5 Conclusion	740
	References	741
	33 Innovating Universities: Technocratic Reform and Beyond	744
	Abstract	744
	1 Introduction	745
	1.1 Structure	746
	2 Interpreting Higher Education Within the Service Sector	747
	2.1 Linear-Technocratic Framing and Beyond	747
	2.2 Complexity Perspectives	749
	3 Innovating Australian Higher Education in Practice	751
	3.1 Policy Directions	751
	3.2 Remaking University Governance	753
	3.3 Linear-Technocratic Innovation and Academic Work	755
	3.3.1 De-professionalization and Effacement of Academic Autonomy	756
	3.3.2 Work Intensification and Workload	756
	3.3.3 Marketizing Teaching and Learning	758
	3.3.4 Increased Standardization of Teaching and Research	759
	3.3.5 Casualization and Flexibilization	760
	4 Conclusion	761
	4.1 Beyond Corporate-Technocratic Management?	761
	References	762
	34 Business Model Approach to Public Service Innovation	767
	Abstract	767
	1 Introduction: The Diminishing Public Sector	767
	2 Cross-Sector Collaboration in Public Service Innovation	769
	3 The `Business Model' Concept	770
	4 Six Innovative Modes of Public Service Delivery for Service Innovation: Australian Evidence	774
	4.1 Privatisation	775
	4.1.1 Case Study: Commonwealth Bank	775
	4.2 Public Private Partnerships	776
	4.2.1 Case Study: Sydney Airport Link	776
	4.3 Contracting Out	777
	4.3.1 Case Study: Department of Immigration and Citizenship	778
	4.4 Commercialisation	778
	4.4.1 Case Study: Cochlear	779
	4.5 Franchising	779
	4.5.1 Case Study: Sydney Ferries	780
	4.6 Social Benefit Bonds	780
	4.6.1 Case Study: Pilot Social Bonds in NSW	781
	5 Towards a New Business Model Framework for Public Sector Innovation	781
	5.1 Customer as a Key Resource	782
	5.2 Innovation Ecosystem: Cross-Sector Collaboration	782
	5.2.1 Stakeholders	787
	5.2.2 Connections or Inter-sector Relationships	787
	5.2.3 Information Sharing	787
	6 Conclusion	788
	A.x(118). Appendix 1	789
	A.x(118).0 Overview of the Ten Existing Business Model Frameworks	789
	References	792
	35 Exposing an Economic Development Policy Clash: Predictability and Control Versus Creativity and Innovation	795
	Abstract	795
	1 Introduction	795
	1.1 Identifying a Limited Portfolio of Investments in Fostering Innovative Activity	796
	2 Understanding Policy Discourse	797
	2.1 Policy Language---A Layering of Perspectives, Values and Meaning	798
	2.1.1 Examining Policy Intention Verses Choice of Policy Instrument	799
	3 Exploring the Constellations of Academic Discourses Informing Innovation Policy in South Australia	802
	3.1 Endogenous Growth Theory	802
	3.1.1 Successful Innovation---An Exchange and Application of Knowledge	803
	4 Enculturation Within Policy Domains	804
	4.1 Adopting Strategic Planning to Support Evidence-Based Policy Making	805
	5 A Case Study---The South Australian Strategic Plan: Predictability and Control Versus Creativity and Innovation	806
	5.1 Fostering Creativity and Innovation Across the Economy---Reality of Rhetoric?	808
	6 Identify Conflicting Values in Policies and Programs to Foster Creativity and Innovation	810
	7 Conclusion	814
	References	816
	Epilogue	819
	Terminology	821