Does innovativeness of knowledge-intensive business services differ from other industries?

This article seeks to determine whether the innovative capabilities of knowledge-intensive business services (KIBS) do actually differ from other industries through comparing the innovation capacities and financial performance of KIBS with firms operating in other sectors (non-KIBS). Based upon a 1000-firm sample, the results of our estimated econometric model demonstrate that non-KIBS firms are in possession of significantly greater innovation capacities than KIBS firms. These differences were observed across factors such as organisational process innovation, the launch of already existing products in new markets, branding and new product designs. Nevertheless, as regards the actual importance attributed to product/service innovation, KIBS firms place a greater comparative importance on innovation in comparison with their non-KIBS peers. In addition, the empirical evidences display a significantly different range of effects of innovation capacities on financial performance and concludes that non-KIBS firms turn in better comparative performances than specialist KIBS firms.     

A comparative study of innovation behaviour in Singapore's KIBS and manufacturing firms

While most services innovation studies are concentrated on the OECD or EU countries, research on services innovation in the non-OECD context is still rare. This study investigates innovation behaviour of a certain group of services – knowledge-intensive business services (KIBS), compared with the manufacturing sector in Singapore. The main findings of this study are: (1) KIBS firms have higher innovating ratio than manufacturing firms, but innovating manufacturing firms are more likely to do R&D than innovating KIBS firms; (2) KIBS firms have higher human capital intensity, training spending intensity, innovation spending intensity, and R&D spending intensity than manufacturing firms; (3) KIBS firms and manufacturing firms have similar innovation objectives, although some delicate nuances do exist; (4) KIBS firms are less likely to have overseas partners for innovation collaboration than manufacturing firms; (5) there is a U pattern of innovation collaboration with geographic distance for both KIBS and manufacturing firms; (6) social capitals are important for KIBS firms' successful provision of innovation support to manufacturing clients; (7) the importance of spatial proximity varies over different phases of innovation support.     

Measurement of innovation activities in the knowledge-intensive services industry: a trademark approach

Innovation measurement in the knowledge-intensive services (KIS) industry is very complex, due to a lack of adequate innovation indicators. A rather new empirical approach involves the analysis of trademarks for the measurement. This paper aims to explore the use and relevance of trademarks for service firms. Data from the German section of the ‘Community Innovation Survey’ are used, and a survey with 278 participating firms is conducted. The results of the two independent empirical studies demonstrate that a trademark can be used as an innovation indicator, at least for knowledge-intensive business services (KIBS) and product innovations. The results also illustrate which firm-inside and environmental features explain the use of trademarks as an intellectual property protection measure.     

The level of innovation among young innovative companies: the impacts of knowledge-intensive services use,firm characteristics and the entrepreneur attributes

The link between difficulties in obtaining funding and young innovative companies (YICs) has been investigated in numerous studies. YICs also face other barriers such as limited internal resources, access to technology services, etc. Thus, any public policy on innovation for providing financial support to YICs must be accompanied by offering technical assistance and consulting services. The purpose of this study is to determine the characteristics of YICs that enhance their innovation and, specifically, if the use of knowledge-intensive business services (KIBS) helps drive innovation. This study also investigates the level of innovation among YICs in relation to the firms’ characteristics (size, sector, competition) and the entrepreneurs’ attributes (age, gender). This study found that the use of KIBS stimulates innovation in YICs.     

L'innovation dans les services à forte intensité de connaissances (SFIC)†

This article examines the determinants of innovation in knowledge intensive business services (KIBS), generally hypothesizing that differences in the effect of the determinants of innovation depend on the type of innovation developed within KIBS. The study results are based on estimates of two econometric models using data from a survey of 392 firms in the province of Ontario, Canada.     

‘Do versus Buy’ Decisions in the Demand for Knowledge Intensive Business Services

The search for the maximum use of scale and agglomeration economies and the need to operate firms in the most flexible way have provided a strong impulse for companies to increase their use of external intermediate services. Because of their strategic role, the use of business services that are intensive both in labour qualification and in technological requirements is key for these policies. The purpose of this paper is to analyse the patterns followed by companies in the two relevant decisions on this issue: firstly, whether to use knowledge intensive business services or not and, secondly, whether (and to what extent) to buy these services from another firm or to provide them inside the organisation. In both cases, we intend to identify the factors that affect the ‘do versus buy’ decision with respect to total KIBS as well as particular categories. A specific feature in our study is that it focuses on the behaviour of firms working in a region without a well-developed supply of KIBS. Applying discrete response models to the data obtained in a survey elaborated by the authors, the most relevant variables for the use of KIBS are satisfaction with previous outsourcing experiences and location of the firm in a large urban centre, but they do not affect their external provision. The size of the firm, its export orientation and its technological complexity have opposite effects on use and outsourcing.     

Innovation patterns and their effects on firm performance

This study aims to identify various innovation patterns and understand their effects on firm performance across business service sectors. By collecting empirical data from 198 Korean business services firms, we explore these firms’ major innovation patterns, conceptualized as combinations of different service innovation dimensions: service concept, service delivery, customer interaction, and technology. Then, in accordance with the innovation patterns they display, we group these firms into four clusters: ‘service delivery-based high-technology', ‘service delivery and customer interaction-integrated', ‘customer interaction-based high-technology', and ‘strongly balanced’ innovators. Last, we investigate whether these patterns influence firm performance. Our findings are three-fold: (1) the innovation patterns in business service firms result from the creation of new combinations of major service innovation dimensions, (2) four independent innovation patterns emerge in business service firms, and (3) these patterns lead to different levels of firm performance. Practically, our findings highlight the importance of highly qualified employees, customer interaction, and technology in improving financial performance.     

Foresight in services: possibilities and special challenges

Service sectors have been only loosely linked to foresight projects considered essential for wiring up innovation systems. This article examines possibilities and methodological challenges in the foresight of services on the basis of a study conducted in Finland in knowledge-intensive business services (KIBS). It also provides empirical results about the future trends in KIBS. The most central of these are the growing emphasis on a consultative way of working and broad service solutions, the tightening linkages to clients' strategies, the blurring of sectoral boundaries and the diversification of the forms of internationalisation.     

Dynamics of Firm Profitability and Growth: Do Knowledge-Intensive (Business) Services Persistently Outperform?

This paper explores the persistence of profitability and growth for firms operating in the Greek service sector, paying special attention to knowledge-intensive services (KIS) and knowledge-intensive business services (KIBS). The generalized method of moments is used on a rich panel of firms over a recent nine-year period. Quantile regressions are complementarily applied for KIS and KIBS industries. The key results from both growth and profit dynamics suggest that firms in KIS and KIBS industries persistently outperform firms in less knowledge-intensive service industries, pointing to strategic advantages of the former. Importantly, KIS and KIBS seem to be able to sustain their growth and profitability persistent trends even in times of crisis. Further insight into these issues is provided by the quantile analysis, the exploration of the profitability and growth inter-linkages, and the investigation of differences among various size groups in KIS and KIBS.     

The internationalization of knowledge-intensive business services: the effect of collaboration and the mediating role of innovation

This study theoretically and empirically analyzes the mediating role of innovation on the relation between collaboration and internationalization strategies in knowledge-intensive business services (KIBS). The work also considers the impact of foreign-based partners and examines the potential direct and indirect effects via innovation of cross-border collaboration on the internationalization of KIBS. The empirical analysis uses a wide sample of Spanish KIBS for the period 2003–2005. The study finds that collaboration positively affects the internationalization of KIBS via innovation. The results related to cross-border collaboration indicate the existence of direct and indirect effects via innovation on internationalization.     

Trade and Innovation in Services: Evidence from a Developing Economy

Studies on innovation and international trade have traditionally focused on manufacturing because neither was seen as important for services. Moreover, the few existing studies on services focus only on industrial countries, even though in many developing countries services are already the largest sector in the economy and an important determinant of overall productivity growth. Using a recent firm‐level innovation survey for Chile to compare the manufacturing and ‘tradable’ services sector, this paper reveals some novel patterns. First, even though services firms have on average a much lower propensity to export than manufacturing firms, services exports are less dominated by large firms and tend to be more skill intensive than manufacturing exports. Second, services firms appear to be as innovative as – and in some cases more innovative than – manufacturing firms, in terms of both inputs and outputs of ‘technological’ innovative activity, even though services innovations more often take a ‘non‐technological’ form. Third, services exporters (like manufacturing exporters) tend to be significantly more innovative than non‐exporters, with a wider gap for innovations close to the global technological frontier. These findings suggest that the growing faith in services as a source of both trade and innovative dynamism may not be misplaced.     

Knowledge intensive business services and their impact on innovation in China

This study investigates the impact of knowledge intensive business services (KIBS) on innovation in China. First, we review the development of KIBS in China by analyzing the agglomeration, utilization, and quality of KIBS. Second, regression techniques are employed to investigate the impact of KIBS on innovation in the Chinese economy. We found that KIBS are becoming a major force in promoting innovation, especially in eastern China. Furthermore, we also found that the effect of KIBS on innovation is highly related to the average level of human capital. Given the findings in this study, we provided some policy suggestions.     

How much does KIBS contribute to the generation and diffusion of innovation?

This article aims to estimate the contribution of KIBS to the innovation system. Data on innovation gathered from national and European databases are analyzed using a methodology based on an input–output framework to estimate the drive for innovation in the Spanish economy and the contribution of KIBS. KIBS are found to be crucial to both the creation and diffusion of innovation. From among the four classifications of sectors analyzed herein, KIBS is found to be the only significant net generator of innovation.     

Growth of KIBS and non-KIBS firms: evidences from university spin-offs

Knowledge Intensive Business Services (KIBS) firms are emerging into a knowledge-processing and knowledge-producing industry. Universities contribute to the creation of KIBS firms through university spin-offs (USOs), which represent an opportunity to boost knowledge spillovers from university to industry thanks to their cutting-edge research knowledge, consolidated research experience and well-developed interactive learning processes. The study of the growth of the KIBS USOs is needed to better understand whether these entrepreneurial ventures represent strategic elements of regional innovation systems and economic growth, distinguishing them from the other USOs in terms of growth. The paper explores whether KIBS firms grow more than non-KIBS firms. Using a sample of 1394 Italian and Spanish USOs over the period 2005–2013, the results show that being a KIBS firm has a positive effect on the growth of Spanish USOs, whereas the same does not hold for Italian USOs. Some relevant policies and practical implications are provided.     

Do innovation spillovers impact employment and skill upgrading?

So far, the research on impact of innovation on employment and skills focused on effects within firms and sectors. Little attention was paid to the influence of interlinkages between sectors as a source of employment change. The main contribution of this paper to the field refers to broadening the analysis of innovation impacts to innovation spillovers from vertically linked sectors on firms' employment and skill change in user industries. The empirical analysis conclusively demonstrates an important role of innovation spillovers in the economy. Firms' employment growth is shown to benefit significantly from spillovers of product innovations in manufacturing and knowledge-intensive services. Similarly, firms that are subject to increased spillovers of product innovations as well as marketing and organisational innovations are more likely to upgrade their skill composition. Conversely, employment growth and skill composition of firms seem to be negatively affected by spillovers of process innovations in vertically linked sectors.     

Unpacking Open Innovation: Absorptive Capacity,Exploratory and Exploitative Openness,and the Growth of Entrepreneurial Biopharmaceutical Firms

In this article, we explore the relationship between two key aspects of open innovation in small firms—absorptive capacity (ACAP) and external relationships—and their effects on growth in the U.S. and European biopharmaceutical sectors. Results from an international sample of 349 biopharmaceutical firms surveyed in the United States, United Kingdom, France, and Germany suggest that realized ACAP plays an important role in determining firms’ growth. In terms of the interaction between firms’ ACAP and external relationships, we find that engagement with exploratory relationships depends strongly on the continuity of R&D, while participation in exploitative relationships is more conditional on firms’ realized ACAP.     

Shopping Motives

Knowledge-intensive business services (KIBS) are a key sector in any knowledge economy, and as such they are subject to multiple policy influences. This article considers the inadvertent impacts of policies on KIBS, using examples drawn from the policy setting in Finland. The key elements of the policy environment are described, with particular attention to innovation policy and small and medium enterprise support policies. The direct and indirect effects of public policies on KIBS are explored with particular attention to effects on innovativeness. The role of research and training organisations as a semi-competitor of KIBS is highlighted. The examples analysed suggest that policy has simultaneously both positive and negative impacts on the innovativeness of KIBS industries.     

Knowledge-exchange strategies between KIBS firms and their clients

Based on a survey of 1124 knowledge-intensive business services (KIBS) firms, this paper explores the extent and determinants of knowledge exchange between KIBS and their clients. An ordered logistic regression was estimated. The results show that the propensity of KIBS firms to rely more on a commoditization strategy and less on a personalization strategy increases with the variety of research sources of information, the number of knowledge employees, the variety of knowledge management practices, the firm's size, the business age, and being a KIBS firm operating in a technology-based industry rather than a traditional professional industry, while it decreases with R&D investments, the variety of advanced technologies, and the strength of ties.     

知识密集型服务企业的知识创新体系

文章指出,基于专业知识储备提供满足客户需求的解决方案,是知识密集型服务企业(KIBS)的一大特征,而知识的储备与恰当运用是KIBS固本强基的两个重要方面。文章提出了一个以KIBS为主角,以客户群组为协作方,以外部知识源为参与方,以联系这三大要素的知识反馈与升华机制为保障的KIBS知识创新体系模型,为知识密集型服务企业做好固本强基工作提供参考。     

Financial projections in innovation selection: The role of scenario presentation,expertise, and risk

Innovation project selection is a decision of major relevance to firms. Errors in this decision may have serious consequences for firms, especially as many firms struggle with optimizing innovation project selection decisions. In their pitches to innovation decision-makers, project teams invariably present financial projections on their innovation projects, which often include best- and worst-case scenario presentation. Despite the potential influence the presentation of such financial projections has on firms’ innovation project selection decisions, this topic has not received sufficient attention in the literature. This study examines the role of scenario presentation on financial projections in innovation project selection by conducting two conjoint experiments among 2,425 managers and 11 follow-up interviews with senior executives. First, the findings of this study suggest that firms should help project teams present small- rather than large-range scenarios. This is important for at least the 57% of firms surveyed in this study where project teams are reported to present ‘too wide’ and ‘too extreme’ scenarios. Second, firms seeking to promote transformational innovation in their innovation pipeline should make the presentation of small-range scenarios required for an innovation proposal to be presented to a project selection committee. This is relevant for 79% of surveyed firms that would like to select more transformational than core innovation projects and especially for the half of which that currently do not require scenario presentation. Third, project teams with less expertise should develop scenarios analytically rather than intuitively and convey the project’s strategic merit to decision-makers to help increase innovation project selection likelihood.