Specificity of innovation in the service sector: the example of Poland

Abstract

The discussion that has taken place in recent years on innovativeness in services is connected, on one side, with their growing role in the economy. On the other, it results from an increase in innovation as the main socio-economic development factor of countries and regions. Innovation is seen as an essential link in developing a strong economy, and its shortcomings may lead to an economic crisis. Innovations have become a new element playing a crucial role in crystallising a new economic model, particularly in developed countries. The growing role of services in the modern economy has led to an increased interest in service activities and service innovations. This paper aims to present the specificity of innovations in the service sector compared to the manufacturing industry based on Poland’s example. In the empirical analysis, data from the Central Statistical Office in Poland and EUROSTAT was used. An analysis of innovativeness in the service sector, based on traditional innovation measurement indicators, concludes that it is much lower than in the manufacturing industry. In the entire analysed period, the percentage of innovative enterprises in the service sector was lower than in the manufacturing industry by several percentage points. According to service sector type, organisation and marketing are more critical in terms of innovation. In their cases, the differences between manufacturing and services are minimal; however, it is more significant in products and processes.