Service Sector Growth Essay Example | Topics and Well Written Essays - 2500 words

Service Sector Growth - Essay Example Other services include those that assist firms in conduct of operations within the regulatory regime, such as auditing and legal services. (Innovation : 2006). Thus these diverse services most of them knowledge based are supplementing traditional services as banking, tourism and leisure. This broad expanse now falling within the ambit of services has placed greater emphasis on the use of science and technology and innovation in this field. The internationalization of technology and its impact on national competitiveness also has a significant influence on the services sector. While traditionally services such as banking, retailing, business processing have not been considered amenable to research and development and innovation as compared to other emerging services such as software development and genetic engineering, this appears far from the truth. Thus innovation can also be employed for creation of growth in the services sector. (SETI : 2004). There is a growing trend which shows that a substantial amount of research and development is occurring in the services sector. While new products and processes were not unknown in the services sector but innovation in services more often related to changes in how, where and when a service is delivered. For instance, electronic banking is an innovative way to provide traditional banking services at home at any time. The growth of knowledge based work along with technological change and competition has also highlighted the need for innovation. Knowledge based work implies non routine, cognitive skills as abstract reasoning, problem solving, communication and collaboration which contribute to the services sector. However, services innovation need not be linked to changes in technology. Fast-food chains, like McDonalds, have applied innovative changes in delivery to obtain fast track growth in diverse geographic areas. To ensure that growth is constant and non linear, it is essential that the services sector is supported by suitable science, technology and innovations policies. Where policies are prevalent there is a need to review them to enable their rationalizing with the markets. (Future of Work: 2004). Innovation policy frameworks also need to focus on non technological facets of the services sector. This will come about once problems in traditional research and development activities have been recognized and importance is given to interactive people oriented actions. (SETI : 2004). The developed World is well aware of this need. Thus the OECD Committee for Scientific and Technological Policy at Ministerial Level has emphasized the importance of the policies for knowledge creation and innovation for sustainable economic growth and social well being. (Science : 2004). The need to involve the research enterprise and involve civil society and business in governance of public research has also bee n identified. The policy design is said to include an interface between innovation and science systems to harness benefits from investments in research. This will also facilitate effective industry science linkages. Policy Initiatives Fostering Growth Patents and copyrights are an essential part of the services industry particularly those related to information technology, knowledge creation