The 2008 crash has left all the established economic doctrines - equilibrium models, real business cycles, disequilibria models - in disarray. Part of the problem is due to Smith’s "veil of ignorance": individuals unknowingly pursue society’s interest and, as a result, have no clue as to the macroeconomic effects of their actions: witness the Keynes and Leontief multipliers, the concept of value added, fiat money, Engel’s law and technical progress, to name but a few of the macrofoundations of microeconomics. A good viewpoint to take bearings anew lies in comparing the post-Great Depression institutions with those emerging from Thatcher and Reagan’s economic policies: deregulation, exogenous vs. endoge- nous money, shadow banking vs. Volcker’s Rule. Very simply, the banks, whose lending determined deposits after Roosevelt, and were a public service became private enterprises whose deposits determine lending. These underlay the great moderation preceding 2006, and the subsequent crash.

The Economic Institutions of Capitalism

Who co-operates for innovation, and why: An empirical analysis

A review of innovation research in tourism

In the unfolding knowledge-based economy, services do matter. But while they are increasingly seen to play a pivotal role in innovation processes, there has been little systematic analysis of this role. This essay presents a four-dimensional model of (services) innovation, that points to the significance of such non-technological factors in innovation as new service concepts, client interfaces and service delivery system. The various roles of service firms in innovation processes are mapped out by identifying five basic service innovation patterns. This framework is used to make an analysis of the role played by knowledge-intensive business services (KIBS) in innovation. KIBS are seen to function as facilitator, carrier or source of innovation, and through their almost symbiotic relationship with client firms, some KIBS function as co-producers of innovation. It is further argued that, in addition to discrete and tangible forms of knowledge exchange, process-oriented and intangible forms of knowledge flow...

Knowledge-intensive business services as co-producers of innovation

Innovation research suggests that innovation types have different attributes, determinants, and effects. This study focuses on consequences of adoption of three types of innovation (service, technological process, and administrative process) in service organizations. Its main thesis is that the impact of innovation on organizational performance depends on compositions of innovation types over time. We examine this proposition by analysing innovative activity in a panel of 428 public service organizations in the UK over four years. Our findings suggest that focus on adopting a specific type of innovation every year is detrimental, consistency in adopting the same composition of innovation types over the years has no effect, and divergence from the industry norm in adopting innovation types could possibly be beneficial to organizational performance. We discuss the implications of these findings for theory and research on innovation types.

Combinative effects of innovation types and organizational Performance: A longitudinal study of service organizations

https://halshs.archives-ouvertes.fr/halshs-01133098/document

Innovation in services

Despite the significance of services in the economic statistics, economic theories of innovation have tended to ignore them, or to assume that innovation in services consists of little more than adopting innovations developed in industry. This view is subjected to a critique based on three questions: (1) why is innovation in services misunderstood or neglected in economic theory? (2) what do field observations indicate are the principal forms of innovation in services? (3) how can these observations help to broaden and enrich the economic theory of industrial innovation?

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New modes of innovation: How services benefit industry

Organizations, firms and institutions in the generation of innovation

Les nouvelles théories de l'entreprise

The purpose of this paper is to enter into the ""black box'' of science-based sectors, to seek a better understanding of the nature of the dynamics of such technological regimes in their different forms. Special attention is given to the institutional dimensions, which, in the authors' view, play a major role in structuring technological regimes and organizational trajectories. After a short review of the literature on science-based sectors and technological regimes, some specificities of the new emerging biotech sector are focused on, aiming to show how and why it can be regarded as a new type of science-based technological regime, referred to in this paper as the science-based ""type 2'' model. In a short final conclusion, some of the consequences of the existence of this basic distinction between two types of ""science-based'' regime are explored.

Olivier Weinstein

Papers

Innovation in services

New modes of innovation: How services benefit industry

Organizations, firms and institutions in the generation of innovation

Les nouvelles théories de l'entreprise

Does Biotech Reflect a New Science-based Innovation Regime?