Services have long been perceived as being non-innovative, but in reality they innovate as well, although often in a different manner than manufacturing. R&D in services is increasing rather rapidly but there are strong sectoral differences in both the R&D intensity and the innovation profile between service sectors. Furthermore, empirical evidence suggests that non-technological innovation plays a very important role in the service sector, for example in management consultancy services.

A Commission document of 27 July 2007 analyses the specific patterns of service innovation and identifies main challenges to support innovation in services with the view to fully exploiting their innovative potential and fostering growth of the service economy in Europe.

As a next step, the Commission will prepare a Communication in the first half of 2008, setting out a European strategy in support of service innovation.

In preparation of the Communication, the Commission services invite stakeholders to give their opinion, until 31 December 2007, on the main issues raised by the Staff Working Document. The online consultation in available in English, French and German. The results of the consultation will be summarized in a report to be published in the beginning of 2008.