Innovation Factors in Service Industry and Knowledge Based Economy

Abstract

Innovation has become one of the most important driver of today's service industry, which plays a key role in knowledge-based economy. In literature generally researches have been emphasized on innovation determinants on manufacturing industry and less concentration on service innovation factors. So this study aims to find out innovation decision factors in service industry by using DEMATEL method. The method was used to analyze the causal relationships and prioritize the importance of innovation factors in logistics industry by applying questionnaire to logistics professionals. Research findings show that research and development is the most important criteria for logistics industry, which also affects knowledge-based economy.