The influence of the port innovation system on port services optimization: evidence from Lisbon and Setúbal

Innovation driven by technological advancement and digitalization is transforming port operations. This study investigates the influence of the port innovation system, with a focus on optimizing ship and cargo services at the ports of Lisbon and Setúbal. The main dimensions of the Port Innovation System (PIS) include human capital, innovation demand, research cooperation, collaborative structures, incubation services, innovation culture, and governance, all of which influence Port Service Optimization (PSO). Using a mixed-methods approach, the study also explores the role of the strategy of the Port Development Company (PDC) in shaping innovation outcomes. This article contributes to both theory and practice by enhancing the understanding of innovation systems in ports and providing evidence-based guidance for policy and management. It finds that the quality of human capital affects the structures of port cooperation, and that the lack of alignment between innovation demand and research cooperation mechanisms undermines the effectiveness of the port innovation system. The results enable policymakers and industry leaders to focus on developing advanced skill enhancement programs, organizational structures and roadmaps to foster innovation in ports. We also find that the strategy of the PDC has a moderating role in the relationship between PIS and PSO, highlighting the need for tailored innovation strategies of the PDC.