ABSTRACT
Innovative sectors constitute the cornerstones of competitive economies and have long been identified in manufacturing, while the services sector was perceived as less innovative. The development of innovation theory led to the recognition that the latter does innovate, albeit differently from manufacturing in that it relies much more on human capital. However, automation and robotisation processes can eliminate human labour, especially in easily algorithmised tasks that can be handled by clients themselves. This can pose a serious challenge for developing economies which are taking over the intermediate links in the services value chains. The aim of this chapter is to present outsourcing and offshoring from the perspective of innovative solutions and, thus, lay the groundwork for further analysis. Based on the literature, it discusses the importance of technology for the development of firms and the entire economy, the role of innovation in the services sector, and outlines the development trends characteristic of this sector triggered by the advent of the fourth industrial revolution.
