A Model Analysis of Industrial Specialization for Innovation Intensive Service: Case of Telematics Service Industry

This research focuses on analyzing the specialization models of service industry. Particularly, a correlation between innovation types and specialization strategies will be constructed for the analysis of industrial specialization enabled by the IIS (innovation intensive service) platform model. A case study of Taiwan´s Telematics service industry is also used in this research to demonstrate the validity of this specialization model. The IIS platform framework depicts the inter-linkages among six innovation types and eight specialization strategies in accordance with the requirements of value activities and externalities. This model connects firm´s core competence, value activities, externalities, and specialization strategy, allowing analysis of needed integration of value activities and externalities based on pre-determined specialization strategy. Results of the empirical study reveal that the optimal specialization strategies of Taiwan´s Telematics service industry is the marketing brand & channels specialization based on market innovation, and the network & platform operations specialization based on structural innovation.