3. RESEARCH DESIGN
3.1 Data Sources
This study examined firms receiving
sponsorship from the Assist Service Sector
Technology Development (ASSTD) project because
these firms are representative of firms engaging in
service innovation. The ASSTD project was initiated
by the Taiwanese government in 2005 and focuses on
encouraging the development of service innovation.
Firms applying for sponsorship must draft a proposal
describing their plan for designing and developing an
innovative service as well as the reason the project is
unique and worth peer review. These firms are then
reviewed by a committee composed of business
experts and researchers. Proposals and projects at any
stage of proof of concept, proof of solution, or proof
of business can be submitted. Only firms that present
projects deemed innovative, feasible, and influential
receive sponsorship. Table 1 shows that between
2005 and 2011, more than 3,000 firms applied for
sponsorship from the ASSTD project, and less than
40% of these firms received sponsorship.
Previous studies have indicated that the ASSTD
project enables firms to modify existing
technology-innovation policies to provide service
innovation. The ASSTD project provides sponsorship
not only for service innovations targeting new IT
applications and new service and product
development but also for service innovations focusing
on new marketing approaches and new business
models. Therefore, the ASSTD project is believed
suitable for observing how SMEs initiate innovation
activities within the service industry