High value services

Services are fundamental to the UK economy. Recognising this, the Technology Strategy Board is exploring the potential for supporting innovation in the high value services sector.

According to the Office of National Statistics (ONS), the combined service sectors accounts for around 75 per cent of output in the UK, and comprises:

• Distribution, hotels and catering;
• Transport storage and communications;
• Business services and finance; and
• Government and other services.

We have started a review of the innovation status and need in these areas, with an emphasis on high value aspects. High value services are considered to be those that generate high gross value add (GVA - using the ONS definition) for the UK economy.

On that basis, and for the purpose of our analyses, we consider the scope of the high value services sector (HVSS) to be:

• Financial Services
• Professional Services
• Retail
• Leisure and Tourism

Historically innovation activities have focused on manufacturing. Research literature suggests that innovation in services occurs in different ways to manufacturing, and the Technology Strategy Board is exploring those differences.

We have started a study of the high value services sector in order to better understand it, its technology-related innovation needs, and to define what we should do to support the UK's leading position.  

The Technology Strategy Board will make its approach to the sector in the second half of 2008.