Technology Spillover

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previous research gap (such as the above limitations) can dynamically comprehend customer real needs. Meanwhile, the important point is to establish a mechanism to easily increase the correctness for managing customer expectations. Thus, service providers can match customer expectation to deliver appropriate service experiences for customer satisfaction during the real-time service delivery. Besides, since designing and managing service experiences need to take service operations into account, we try to manage and deliver services within digital and physical spaces (namely, cyber-physical service) by considering technology, environment and frontline based on existing cyber-physical systems. Hence, this research aims to propose a systematic and integrative approach to design and manage service experiences and operations within the dynamic and complex context of cyber-physical services.

2.4 Technology Spillover

This study is to propose an expectation-based service experience and operation design and management approach. Consequently, the systematical and integrative approach can be considered as an innovative technology for designing service experiences. Finding the effective way to export and duplicate this technology and realizing the adoption effects of this technology are essential issues. Accordingly, the related works and the importance of technology spillover will be described as follows.

We will delineate a S-D logic based input-output analysis approach for evaluating the effects of technology spillover in Chapter 7.

Technology spillovers refer to spread of technologies that are procured from an industry‟s or a company‟s innovative technology generation and have directly or indirectly positive effects on other industries‟ or companies‟ activities (Los, 2000).

For example, an industry can change its ordinary role (e.g. a product-based

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manufacture role) to be an integrated role (e.g. a service-based firm role) through technology spillovers. Technology spillovers often take place within the innovation creation or method improvement of an industry to meliorate the firms‟ performances either in the same industry or across the other industries.

Furthermore, technology spillover (or knowledge spillover) can be regarded as a positive effect which can enable an enterprise to increase the growth of economic profit by adopting a new technology (knowledge). Since information technology or knowledge of an enterprise cannot be restricted to be used by other companies. For example, either partners or competitors of the same industry can easily learn and imitate the new technology (knowledge) from an enterprise to do further applications in order to generate huge impact on themselves. Consequently, understanding the effect of technology spillover not only helps enterprises find some potential chance to increase their capabilities but also enables the industry to increase its competency.

Moreover, technology spillover still has been an important issue within manufacture, information technology and business disciplines which a lot of researchers continuously attempts to find a systematical and innovative approach to precisely measure the effect of technology spillover. Los (2000) conducted an empirical research to propose a new approach in order to measure inter-industry technology spillover. Jacob and Szirmai (2007) found out that knowledge spillover would be a critical factor to influence the growth of a developing country. Los and Verspagen (2000) investigated that spillovers have a significant positive effect on productivity within different level of tech enterprises. Dietzenbacher (2000) combined the original measures with the Leontief inverse method to measure spillover of innovation effects.

In order to delineate the difference of technology spillover between G-D logic

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and S-D logic, we try to utilize an example of Apple (e.g. iPod). In the G-D logic, the most importance that Apple concerns about is the productivity and quality of iPods.

Apple needs to draw up the outsourcing plan in order to secure the suitable manufactories with high performance and quality producing processes. For example, Apple has to choose the leading manufactories to be an alliance which have had the new technology (e.g. ARMv6) regarded as an operand resource to acquire in order to produce the processor components of iPods. Hence, in order for the quality merchandise and mass production of markets, Apple can make a profit of iPods through the effects of technology spillover by adopting high tech manufactories of the ARMv6 manufacturing technologies in the industry.

However, in the S-D logic, values creation and customer involvements play the important role within services. Apple provides their customers with many on-line services integrated through iPods with appropriate value proposing among Apple, online service providers and customers. iPod is a platform for users to download and upload their favorite music and other information and users can conveniently acquire useful messages, share personal information and communicate with other users, online service providers and Apple via Pods. In other words, iPod adopts the value-creation network model and emphasizes on the servicing and experiencing for their users by integrating a variety of operant resources of online service providers.

Hence, Apple can gain a great number of users through the resource integrating effects based on the technology spillover of value-creation network. Consequently, we use the example of Apple to delineate what the effects of technology spillover are different between S-D logic and G-D Logic. According to above research, technology spillovers mainly play a critical role which influences the economic activities.

However, those studies were majorly applied to the manufacture production issues by

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analyzing the effects of technology spillovers. Hence, how to find an appropriate approach to unfold and measure the technology spillover considering the notion of service science is still an open issue. This study attempts to propose such an approach to unfold and measure the effect of technology spillovers in services.