The Rise of the Service Economy

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Francisco J. Buera, Joseph P. Kaboski NBER Working Paper No. 14822 Issued in March 2009 NBER Program(s):   EFG ---- Abstract ----- This paper analyzes the role of specialized high-skilled labor in the growth of the service sector as a share of the total economy. Empirically, we emphasize that the growth has been driven by the consumption of services. Rather than being driven by low-skill jobs, the importance of skill-intensive services has risen, and this has coincided with a period of rising relative wages and quantities of high-skilled labor. We develop a theory where demand shifts toward ever more skill-intensive output as income rises, and because skills are highly specialized this lowers the importance of home production relative to market services. The theory is also consistent with a rising level of skill and skill premium, a rising relative price of services that is linked to this skill premium, and rich product cycles between home and market, all of which are observed in the data.

Publications

Service Innovation the Nordic Countries: Key Factors for Policy Design. Final Report
Drafted by Carter Bloch
With contributions from Elva Aðalsteinsdóttir, Per-Olof Brehmer, Jesper L. Christensen, Ina Drejer, Katja Hydle, Morten Berg Jensen , Jari Kuusisto, Ragnhild Kvålshaugen and Anker Lund Vinding.

Mapping Service Innovation Policy in the Nordic Countries
by Jari Kuusisto

Service Innovation in the Nordic countries: An analysis using CIS4 data
by Carter Bloch

Blurring boundaries between manufacturing and services
by Jesper L. Christensen and Ina Drejer

High performance work practices and innovation in the manufacturing and service sector
by Morten Berg Jensen and Anker Lund Vinding

Towards a taxonomy for Business Service Innovation - Literature Review
by Ragnhild Kvålshaugen, Katja Maria Hydle and Carter Bloch
A Taxonomy for Service Innovation
by Ragnhild Kvålshaugen, Katja Maria Hydle and Per-Olof Brehmer.








Mapping studies of service innovation policy for individual Nordic countries:

Mapping Innovation Policy in Services – Country Report Denmark
by C. Bloch and K. Aagaard

Mapping Innovation Policy in Services – Country Report Finland
by J. Kuusisto and S. Kotala

Service innovation policy measures in Iceland
by E. Aðalsteinsdóttir

Mapping Innovation Policy in Services – Country Report Norway
by NIFU-STEP

Innovation Policy Project in Services – Mapping Study of Sweden
by Eklund, U., Johannesson, C., Wiik, H. and Johaneson, A.

Essay Archive

Edited by Lucy Kimbell and Victor P. Seidel, collected in this innovative and highly illustrated volume are findings from the designing for services project. Particular focus is on the practices of an emerging discipline of service design grounded in the arts and humanities. Three case studies in which service design companies worked with science and technology-based enterprises are discussed, from a range of academic perspectives.

Download the complete publication or choose a specific essay from the selection below:

• Designing for Services - Multidisciplinary Perspectives: Proceedings from the Exploratory Project on Designing for Services in Science and Technology-based Enterprises, Saïd Business School (2008)
  Edited by Lucy Kimbell and Victor P. Seidel

  [1.4mb]

• Participants list

  [57k]

• Introduction
  Lucy Kimbell and Victor P. Seidel

  [246k]

• Service design: time to bring in the professionals?
  Bruce Tether

  [77k]

• Services innovation and operations: learning from services marketing
  Antti Ainamo

  [112k]

• Designing high-technology services, or not: a bittersweet tale of love and loss
  Steve New

  [148k]

• Service design modularity and technological innovation
  Victor P. Seidel

  [100k]

• Design research method - cultural probes
  Lucy Kimbell

  [220k]

• Experimental service design and innovation
  Chris Voss and Leonieke Zomerdijk

  [109k]

• Designing for services: design thinking and operations management - converging or parallel worlds?
  Kate Blackmon

  [134k]

• Reflections on the designing for services project
  Anna White

  [105k]

• Designing for services - a vocabulary

  [110k]

• Designing value-creating systems
  Rafael Ramirez and Ulf Mannervick

  [93k]

• They know it in their gut
  Ben Reason

  [202k]

• A perspective on design theory and service design practice
  Robert Young

  [135k]

• Visualization and the design of services
  Jennifer Whyte

  [160k]

• Designing for services: videos as research outputs
  Lucy Kimbell

  [137k]

• Service design: a 21st century interdiscipline?
  Lucy Kimbell

  [217k]

• Further reading

  [86k]

• Credits

Final papers

The full papers from each day's sessions are provided below. The presentations that accompany the papers are available here.

Tuesday, December 9 2008

Paper 1: R. Lusch & S. Vargo. (2008). A service-dominant logic perspective on collaborating for competitive advantage, Otago Forum 2: Academic Papers, 1-2. (PDF, 53KB)

Paper 2: J. Spohrer, L. Anderson, N. Pass & T. Ager. (2008). Service science and S-D logic, Otago Forum 2: Academic Papers, 3-18. (PDF, 118KB)

Wednesday, December 10 2008

Paper 3: V. Ramaswamy. (2008). The co-creation paradigm: Co-creating mutual value through engagement platforms and experiences, Otago Forum 2: Academic Papers, 19-20. (PDF, 58KB)

Paper 4: T. Hilton & T. Hughes. (2008). Co-production and co-creation using self service technology: The application of service-dominant logic, Otago Forum 2: Academic Papers, 21-40. (PDF, 148KB)

Paper 5: D. Ballantyne, R. Varey, P. Frow & A. Payne. (2008). Service-dominant logic and value propositions: Re-examining our mental models, Otago Forum 2: Academic Papers, 41-60. (PDF, 43KB)

Paper 6: S. Baron & G. Warnaby. (2008). Individual customers’ use and integration of resources: Empirical findings and organizational implications in the context of value co-creation, Otago Forum 2: Academic Papers, 61-79. (PDF, 151KB)

Paper 7: D. Flint, C. Blocker & P. Boutin. (2008). Co-creation, desired value anticipation and demand-supply integration in B2B relationships, Otago Forum 2: Academic Papers, 80-108. (PDF, 237KB)

Thursday, December 11 2008

Paper 8: D. Ford. (2008). IMP and SDL: Divergence, convergence and development, Otago Forum 2: Academic Papers, 109-125. (PDF, 147KB)

Paper 9: M. Schulz & J. Gnoth. (2008). Understanding the service-dominant logic of marketing from within the firm, Otago Forum 2: Academic Papers, 126-138. (PDF, 233KB)

Paper 10: R. Brodie, V. Little & J. Motion. (2008). Value postures and the service dominant logic: Between-firm and within-firm business perspectives, Otago Forum 2: Academic Papers, 139-164. (PDF, 182KB)

Paper 11: M. Purvis & A. Long. (2008). Wider perspectives on service dominant logic, Otago Forum 2: Academic Papers, 165-185. (PDF, 140KB)

Friday, December 12 2008

Paper 12: K. Storbacka & S. Nenonen. (2008). Scripting markets: From value propositions to market propositions, Otago Forum 2: Academic Papers, 186-212.(PDF, 487KB)

Paper 13: I. Karpen & L. Bove. (2008). Linking S-D logic and marketing practice: Toward a strategic service orientation, Otago Forum 2: Academic Papers, 213-237. (PDF, 172KB)

Paper 14: J. Williams & R. Aitken. (2008). Marketing ethics and the service-dominant logic of marketing, Otago Forum 2: Academic Papers, 238-267. (PDF, 1MB)

Paper 15: C. Grönroos. (2008). Adopting a service business logic in relational Business-to-Business marketing: Value creation, interaction and joint value co-creation, Otago Forum 2: Academic Papers, 268-287. (PDF, 332KB)