This document analyses the nature of service R&D activity and growth. The role and significance of R&D in services has been growing rapidly recently, although in the context of services it is also important to note that much innovative activity in the service sector remains of a nonR& D and...

The service sector has a dominant role in the developed economies, accounting for about two thirds of employment and GDP (Eurostat, 1999). According to Eurostat, "Services are the only sector of the European economy that has generated jobs in the last two decades." Thus, between 1985 and 1997...