Abstract:
Service innovation includes both innovations in the dominant services sectors and ways in which agriculture and manufacturing can become more competitive by adding value through services. The paper presents main trends in the service sectors in Latin America and the Caribbean (LAC); summarizes driving forces behind development of the service economy; discusses the role of innovation and the main failures that justify innovation policy; introduces several policy frameworks that can support service innovation; and infers some policy implications for LAC based on preliminary results from the project. The promotion of innovation in LAC is particularly important.
