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Knowledge Intensive Services' Suppliers and Clients

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arrangements for clients. New S&T-related KIBS may emerge from professional<br />

services: for example, it is common to find firms emerging to supply software <strong>and</strong><br />

other products to clients <strong>and</strong>/or other firms in their sector.) The staff profile of<br />

KIBS includes many people with higher education <strong>and</strong> professional qualifications.<br />

This is one indicator that we are dealing with a specialised KIBS, rather than a<br />

service concerned with routine solutions to common problems – such as transport<br />

<strong>and</strong> logistics, mass entertainment, postal <strong>and</strong> telecommunications infrastructure<br />

services (much of what such services do is not routine – but a large share of the<br />

effort of their workforce is being expended in routine ways). 2<br />

Evidence as to the knowledge-intensity of different economic activities can be<br />

gleaned from various sources, <strong>and</strong> Figure 1, below, uses the results from the most<br />

recent UK Community Innovation Survey (CIS-3). This allows us to examine the<br />

share of graduates of two kinds – Science, Engineering <strong>and</strong> Technology graduates,<br />

<strong>and</strong> other graduates – in the workforce of firms responding to the survey. The data<br />

have been processed by Bruce Tether, of CRIC. They confirm that KIBS are more<br />

knowledge-intensive than other sectors (by this indicator) <strong>and</strong> suggest that there are<br />

clusters of KIBS relying (a) mainly on “other graduates” <strong>and</strong> (b) also on S&T<br />

graduates. This corresponds to a familiar distinction in the KIBS literature, between<br />

technology-oriented <strong>and</strong> more professional <strong>and</strong> administrative KIBS.<br />

2 A potentially interesting line of enquiry is to examine the hare of R&D or other innovation-related<br />

staff among the senior echelons of such companies, rather than as a proportion of the total workforce.<br />

This might help us distinguish those companies that are innovative <strong>and</strong> deploying new knowledge in<br />

strategic ways, as opposed to those that are simply big.

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