How Service Innovation Boosts Bottom Lines

Abstract

In the national quest for ground-breaking R&D discoveries and inventions, service innova- tion is frequently ignored at considerable cost to an organization’s bottom line and a na- tion’s productivity. For the fact is that innovation applied systematically to all activities outside of R&D can make the difference between uninspiring results and substantial growth in every sector. Many countries, in particular in Europe, have recognized the importance of service innov- ation and are devoting considerable resources to research, the capture of best practices, and the measurement of progress and success. Given the physiognomy of the modern eco- nomy, it does not make sense for leaders in the Canadian public sector to devote all avail- able innovation investment dollars to science and technology R&D. This article explores why service innovation is not yet a priority on the innovation agenda in Canada and why we should correct the dangerous misconception that there is just one “innovation gap” that needs to be addressed. It provides practical recommendations that public and private sector leaders can use to take advantage of this under-valued, high-po- tential innovation opportunity and calls for the creation of a national service innovation resource to support enterprises of all sizes as a means to improve Canadian productivity.