FOREIGN EXPERIENCES IN INCREASING THE COMPETITIVENESS OF THE SERVICE SECTOR
Abstract
The competitiveness of the service sector is a crucial factor in economic development and global market positioning. This paper explores international best practices in enhancing service sector competitiveness, focusing on digital transformation, customer-centric strategies, public-private partnerships, quality standards, sustainability, and regulatory frameworks. Case studies from countries such as the United States, Japan, Germany, Singapore, and Scandinavian nations illustrate how innovative policies and business models contribute to efficiency, customer satisfaction, and economic growth. The findings highlight the importance of technological advancements, workforce development, and sustainability in building a resilient and competitive service industry.
References
FOREIGN EXPERIENCES IN INCREASING THE COMPETITIVENESS OF THE SERVICE SECTOR
Kayimov Mirjalol Jumabayevich
Head of the Department for Coordination
of Student Housing, SamIES
qayumovmirjalol@mail.ru
Abstract: The competitiveness of the service sector is a crucial factor in economic development and global market positioning. This paper explores international best practices in enhancing service sector competitiveness, focusing on digital transformation, customer-centric strategies, public-private partnerships, quality standards, sustainability, and regulatory frameworks. Case studies from countries such as the United States, Japan, Germany, Singapore, and Scandinavian nations illustrate how innovative policies and business models contribute to efficiency, customer satisfaction, and economic growth. The findings highlight the importance of technological advancements, workforce development, and sustainability in building a resilient and competitive service industry.
Key words. Service sector, competitiveness, digital transformation, customer experience, public-private partnerships, quality standards, sustainability, innovation, economic growth, regulatory policies.
Competitiveness of a country in the modern economy is a category that includes both the ability to create, produce and sell products or services that are in demand in international trade, and the ability to achieve sustainably high rates of growth in real incomes of the population in the long term. Modern competitiveness is directly related to the level of labor productivity. The World Economic Forum (WEF) considers competitiveness as a set of institutions, policies and other factors that determine the level of productivity in a country and, consequently, the country's ability to maintain a high level of income and economic growth. What are the distinctive features of modern competitiveness? Its basis is the technological advantage of the country, which lies in the resource of knowledge, technological, labor, investment and organizational and managerial resources. Their development is accompanied by technological accumulation, increased ability to assimilate new technology and the birth of technological dynamism. At the same time, the increasing complexity of technology, accumulating in itself an increasing "knowledge intensity", requires the constant introduction of organizational and institutional innovations corresponding to the new technology. Among the latter, the main role belongs to the formation of modern labor resources with such a level of skill and qualification that allows them to quickly adapt to changes in technology. The presence of such resources is a precondition, and often a determinant, of the country's competitiveness.
National competitiveness is determined by productivity, the sources of growth of which depend on the stage of development of the country. M. Porter identified three stages of development with different levels of productivity and different nature of competitive advantages1. At the first stage, productivity, economic growth and competitiveness are based on the contributions of production factors, primarily labor and natural resources. Companies compete on the basis of prices, supplying basic, low-tech products to world markets, which corresponds to low wages for workers. Competitiveness at this stage of development depends on the quality of functioning of public and private institutions, development of infrastructure, stability of macroeconomic conditions, health and literacy of the workforce and is defined as predominantly resource-based, or factor-based.
Technological resource here means a set of technologies developed in the country or imported, which are used within the country or exported and have tangible (equipment, installations, devices, etc.) and intangible (patents, licenses, know-how, technical information, technological knowledge embodied in people) forms. The creation, maintenance and development of this resource is determined by the intensity of the investment process and scientific research activities in the country, the activity of introducing the results of its own research into industry, as well as the process of borrowing foreign technology through import, licensing and imitation of technologies and products.
The technological resource of the country is most fully characterized by the indicators of technological readiness and innovativeness of the economy, developed within the framework of the World Economic Forum project. These indicators reflect the speed with which the economy assimilates existing technologies to increase productivity, and the country's potential for producing a stream of commercially in-demand innovations. Both indicators directly depend on the expenditure on scientific research and development, the availability of scientific and engineering personnel and high-quality scientific research institutes, the development of information and communication technologies (ICT) and information infrastructure. However, the state of the technological resource cannot be considered in isolation from the macroeconomic conditions in the country and the microeconomic factors of the economy. First of all, it depends on the microeconomic component of the economy, on the development and complexity of the business sector, the ability of companies to create and assimilate new technology, which ultimately manifests itself in their competitiveness.
Foreign experience in increasing the competitiveness of the service sector includes various strategies, best practices, and policy measures that have been successfully implemented in different countries. Some of the key approaches include:
1. Digital Transformation and Innovation
• United States & European Union: Widespread adoption of AI, big data, and cloud computing in services like banking, healthcare, and tourism to improve efficiency and customer experience.
• Singapore: Smart Nation Initiative focuses on integrating technology in service industries, including smart healthcare and e-government services.
2. Customer-Centric Strategies
• Japan: The "Omotenashi" approach in hospitality emphasizes exceptional customer service, leading to global recognition of Japanese service excellence.
• Sweden: IKEA’s customer-driven innovation and self-service model have improved operational efficiency and customer satisfaction.
3. Public-Private Partnerships (PPP)
• Germany: Strong collaboration between the government and private sector in vocational education ensures a skilled workforce for service industries.
• United Kingdom: Initiatives like the National Skills Fund support workforce training in the service sector.
4. Quality Standards and Certification
• European Union: Implementation of ISO service quality standards and consumer protection regulations enhances competitiveness.
• South Korea: Government-supported quality certification programs for tourism and healthcare services.
5. Sustainability and Green Services
• Scandinavia (Denmark, Sweden, Norway): Sustainable tourism initiatives and eco-friendly service models.
• Netherlands: Green banking and insurance services promote sustainable financial practices.
6. Deregulation and Business-Friendly Policies
• Hong Kong & Singapore: Low taxation and minimal bureaucracy attract international service-based businesses.
• United States: Deregulation in financial services has encouraged fintech innovation.
Each of these strategies provides valuable lessons for countries looking to improve the competitiveness of their service sectors. The international experience in enhancing the competitiveness of the service sector demonstrates that success is driven by a combination of innovation, customer-centric approaches, regulatory support, and sustainability initiatives. Countries that effectively integrate digital transformation, public-private partnerships, and quality standards tend to develop highly competitive service industries. Key takeaways include:
• Technology and Innovation: Digital tools such as AI, cloud computing, and data analytics are essential for improving efficiency and customer engagement.
• Customer Experience: Prioritizing high-quality service and personalization increases consumer loyalty and global competitiveness.
• Government Support & Policies: Business-friendly regulations, investment in workforce development, and sustainability incentives strengthen service industries.
• Sustainability & Green Services: Eco-friendly practices and sustainable business models are becoming essential for long-term competitiveness.
References
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