Assessment of industrial pre-determinants for territories with active product-service innovation ecosystems

There has been growing interest in service-augmented products and the subsequent formation of product-service innovation (PSI) ecosystems. Hence, the objective of this paper is to empirically address an unexplored aspect of PSI ecosystems research by offering answers as to whether territories develop more performant PSI ecosystems in terms of manufacturing employment growth when they arise from an existing industrial base. Running a fixed-effects model on a sample of all 17 Spanish autonomous communities in the period from 2006 to 2012, the importance of territories having a strong incumbent manufacturing sector before developing PSI ecosystems is revealed. Specifically, it is found that PSI ecosystems will generate greater industrial employment growth in manufacturing-led territories. Our model and findings suggest various implications for scholars, managers, and policymakers alike.

Automated summary

This paper empirically investigates the impact of existing manufacturing sector on the performance of PSI ecosystems in terms of manufacturing employment growth in 17 Spanish autonomous communities from 2006 to 2012. The findings reveal that territories with a strong incumbent manufacturing sector before developing PSI ecosystems experience greater industrial employment growth. This research has implications for scholars, managers, and policymakers.