Service innovation in manufacturing firms: Evidence from Spain

The ways in which manufacturing firms come to offer services to customers – servitisation or servicisation – are attracting considerable attention. This paper examines an innovation survey of Spanish firms in order to investigate one aspect of this phenomenon: the introduction of new or improved services by manufacturers. Specifically, the paper analyses the determinants of service innovations in manufacturers and determines whether they differ from those of product or process innovations in these same firms. The study finds that almost 20 percent of the firms in the sample have introduced such services in the recent past and that important differences exist between service and product (goods) innovations, with service innovations being particularly related to human resource development and closer links to customers. This suggests that service innovation by manufacturers has much in common with the innovation patterns detected in service sector firms. Intriguing differences across manufacturing sectors are also noted, with the lowest- and highest-tech sectors reporting more service innovations than the medium-tech sectors.

► Manufacturers often introduce new services as well as new goods.
► This study offers evidence on the determinants of service innovation in manufacturing firms.
► Differences in the determinants of service, product, and process innovations are shown.
► Service innovations are related to human resources and links to customers.
► Interesting differences across manufacturing sectors are also found.