Research, Development and Innovation Impact in Services and Industry: The Canary Islands Case

Abstract

The services sector represents about 70% of developed economies (in terms of employment and value added) and its evolution has contributed significantly to economic growth during the last decade. However, the services have traditionally considered residual sectors and they have not been (not even now) a target for the main R&D and innovation policy support. Contrary to the traditional thoughts, according to the results achieved comparing Canary Islands and Spanish services sector and manufacturing sector, the first contributes significantly to economic growth and productivity. The results point out that due to the significant contribution of innovation and R&D's efforts to GDP and productivity, it becomes a necessity and an opportunity to promote and further enhance services sector competitiveness through a more focused R&D and innovation support. The analysis carried out indicates the need of encouraging innovative efforts in the services sector as a means to improve its productivity levels not only with the sector itself but also the whole economy.