Introducing service innovation into product-based manufacturing companies
CE industries are still mainly focused on manufacturing of products. Despite the investments in innovation technologies, their competitiveness is seriously challenged due to the commoditization and low cost competition from non-EU countries. The strict division of products and services has been replaced by a service-product continuum and service innovation may constitute a factor impacting directly and positively regional economic growth and societal well-being, in particular in areas with below-average economic performances (ESIC, 2015).
CE SMEs are hindered by a lack of service innovation management and THINGS+ project aims to strengthen entrepreneurs’ skills on this issue. By enriching their portfolios with additional services, SMEs could increase the value delivered to their customers and improve their position on the market. Innovative business models underpinning product-service systems are needed and Knowledge Intensive Business Services (KIBS) are increasingly viewed as vital in helping traditional industry staying competitive by training entrepreneurs and creating new business opportunities.
The main output of the project is a new methodology to improve entrepreneurs’ skills on introducing service innovation into manufacturing companies. By introducing servitization of products through an adequate human capital investment, the traditionally product-based firms will cope with changing market forces and shrinking markets, and may act as regional innovation motors with no need of high investments. The process of servitization of industries is a trend in the most developed EU regions and can be accelerated in the CE thanks to the capacity building actions foreseen by THINGS+. The transnational approach will help regions understanding the potential impact of service innovation as a driver for industrial transformation and competitiveness and tailoring regional service innovation-related policies to be integrated into mainstream innovation policies.