Abstract
The economics of services is seeking a theory of innovation appropriate to its specific features. This chapter examines the transposition, into the services sphere of the concepts of the technological paradigm, and the technological trajectory and attempts to construct sector-based taxonomies of the forms of technological change. The chapter presents the ‘reverse product cycle’ model of R. Barras goes beyond these conceptual transpositions since it proposes a theory of services innovation along Schumpeterian lines; a detailed critical analysis. It looks at the modalities of transposing the concepts of the technological and techno-economic paradigms to service activities. L. Soete and M. Miozzo, by contrast, utilize K. Pavitt’s criteria to propose a taxonomy that is specific to services. In an evolutionary and neo-Schumpeterian perspective Pavitt was able to disaggregate the whole British economy into three categories: supplier-dominated, production-intensive and science-based. The Barras model is exclusively based on the adoption of information and telecommunications technologies by firms in the service sector.
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