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Knowledge Intensive Services' Suppliers and Clients

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11<br />

1 Introduction: KIBS in Context<br />

1.1 The role of KIBS<br />

<strong>Knowledge</strong> <strong>Intensive</strong> Business Services (KIBS) are among the fastest growing <strong>and</strong><br />

dynamic sectors of the economy (c.f. Table 1). They contain many innovative users<br />

of new technologies, especially Its; <strong>and</strong> they provide considerable potential for<br />

future employment growth. They play a role in improving the competitiveness of<br />

enterprises (<strong>and</strong> the quality of public services) throughout the economy. They form<br />

important intermediaries <strong>and</strong> nodes in innovation systems. Through innovation<br />

support <strong>and</strong> outsourcing of services, they can improve quality <strong>and</strong> help adapt<br />

production structures to the challenges of the knowledge-based economy.<br />

But while policy attention is beginning to be focused on KIBS, the statistical<br />

picture remains very underdeveloped, <strong>and</strong> there is very little comparative appraisal<br />

of policy measures aimed at the sector <strong>and</strong> its use. The interrelationships between<br />

KIBS <strong>and</strong> other economic activities remain very poorly understood. The available<br />

literature is very scattered. For example, management research has examined the<br />

role of business services in outsourcing enabling enterprises to concentrate on their<br />

core competencies. Innovation researchers <strong>and</strong> regional geographers have<br />

examined the role of business services in innovation networks <strong>and</strong> in the diffusion<br />

of knowledge. Studies of knowledge management <strong>and</strong> intellectual property<br />

systems have examined how business services tackle these issues. Economic<br />

analyses have related the growth of KIBS to structural change in the economy, <strong>and</strong><br />

sought to estimate the performance impacts of KIBS use. This paper seeks to bring<br />

together elements of this scattered literature. 1<br />

So what are KIBS, <strong>and</strong> how do they relate to <strong>Knowledge</strong> <strong>Intensive</strong> Services <strong>and</strong><br />

Service Activities more generally?<br />

1 A number of projects under the framework of the EC's TSER programme have undertaken relevant<br />

activities <strong>and</strong> reviews. These include the projects KISINN, RISE, SI4S, <strong>and</strong> TIPIK, details of which<br />

can be found on the cordis.lu website.

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