What are KIBS? why are they so important in growth and innovation?

1. Knowledge Intensive Business – Innovation-intensive and Innovation-enabling? Ian Miles [email_address]

6. Relative Scale of various BS in the UK, 2000 Rapid growth, across industrial world 0 10 20 30 40 50 60 70 VALUE ADDED bn euros

7. Technological and Professional Graduate-Intensity UK CIS3 data analysis by Tether & Swann "professional KIBS" “ technology-based KIBS”

8. “ Working Conditions” ambient conditions ergonomic conditions atypical hours working hours job demands job control task flexibility skilled work social support discrimination  Better than average of other sectors Worse than average of other sectors  Real Estate + Business Services, EU15, 2000 skilled work: incs. meeting standards judging quality solving problems few monotonous tasks more complicated tasks doing new things

9. KIBS are often particularly innovative - CIS2 data Percentage innovating Also – German data (Hipp) shows these are less standardised sectors

11. Swedish Survey (Nahlinder) 1000 KIBS firms (Higher for less standardised services) (All higher for more innovative firms)

12. Knowledge of environments – internal and external Competitors Clients, Suppliers Collaborators Regulators Financiers Markets Social & Institutional Env Natural & Physical Env Process Technology Management Organisational Structure/ Design Routines Techniques Human Resources Product Technology & Design

14. Interactive Processes Preliminary Problem Formulation Coproduction and Absorption of Solution Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * Firm’s experience of problem KIBS fusing generic and local knowledge * including previous service encounters Intelligence Diagnosis Prescription (Configuration) Implementation

15. Interactive Innovation External (generic) knowledge resources Firm’s experience of problem KIBS fusing generic and local knowledge Preliminary Problem Formulation Coproduction and Absorption of Solution Intelligence Diagnosis Prescription Configuration Implementation Knowledge concerning technologies; scientific and engineering principles; innovation-relevant market conditions, regulations, laws More detailed understanding of problem, ways of measuring and monitoring Reduced risk in defining solution; introduction of new types of solution Easier learning and application of experience in combining processes Saving resources that can be applied to core products and processes

16. Effecting Innovation 1 KIBS Innovation Data production, processing, knowledge generation, generalisation, synthesis methods; presentation tools; specific technologies and techniques for problem area... Client Innovation Reduced risks, accelerated learning, new ideas, training, freer resources, focus on core problems Coproduction of Innovation Interactive learning about problems and potential solutions; new market opportunities

18. Who are the Users? Various EU countries, c1995 Intensive users Major markets

19. Who are the Users? UK 1995 UK - Business Services mainly supporting other services

20. Who are the Users? UK 1995 France - Business Services mainly supporting other services, except R&D services

23. Top Ten Users- Computer Services UK c1995 All services 85% of output goes to top 20

24. Top Ten Users- R&D Services UK c1995 85% of output goes to top 20 - 9 are services, many public

25. Top Ten Users- Other Business Services UK c1995 84% of output goes to top 20 9 of top 10 are services, plus construction