By John R. Baldwin, Guy Gellatly, Joanne Johnson, Valerie Peters
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Extra info for Innovation in dynamic service industries
Sample text
Conversely, innovators in financial services and technical business services tended to place greater stress on increasing market share. Opening new domestic markets was an important objective of the innovation activities for innovators in all industries, but was so-rated by larger proportions of innovators in financial services and technical business services than it was by innovators in communications services. Only technical business services innovators indicated that moving into new foreign markets was also an important objective of innovation activity.
The nature of the competitive environment that innovators face conditions their willingness to undertake various sorts of innovative activity. Specifically, the nature of the risks and uncertainties may make certain types of innovation more critical and others less attractive. For example, in industries where customers substitute products based on small price differences, producers may be forced to introduce cost-related innovations. Similarly, rapid changes in production technology may encourage continual innovation to keep pace with the changes.
88-516-XPB The responses demonstrate that innovators in these industries face a very uncertain environment. Many similarities across the industry groups are observed with respect to sources of risk or uncertainty in the competitive environment. Innovators—in each of the three industry groups studied—agreed that their customers could easily substitute and that they faced a high threat from the arrival of new competitors. This probably explains the high degree of product innovation throughout the groups.