819 research outputs found

    There is no territorial fatality! (or how innovation interactions between KIBS and SMEs may modify the development patterns of peripheral regions)

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    Observing regions, for instance in Europe, one may easily notice inequalities in the resources they devote to innovation activities and in the results they reach in terms of economic success. In this respect, it may be assumed at first glance that a hierarchy of regional environment could be established. Nevertheless, it is advocated in the paper that this does not obligatorily imply a "territorial fatality". More precisely, the analysis constitutes an attempt to highlight the role of actors who have been insufficiently taken into account by comparison to the ones traditionally examined: large companies, universities and other higher education institutions, technology transfer organisations, regional administrations and other public bodies. The actors on which the paper focuses are: (i) small and medium-sized manufacturing firms (SMEs); and (ii) knowledge-intensive business services (KIBS). In particular the case of SMEs is of interest since SMEs represent the largest proportion of manufacturing firms located in peripheral regions (and in certain peripheral regions, the whole population of manufacturing firms). For similar reasons, it seems relevant to examine also KIBS. The expansion of KIBS reflects the growing importance of their economic activity. Moreover, they are locally available even in regions with no or only little traditional innovation infrastructure. Additionally, the hypothesis is made that potentially the virtuous circle linking the innovation activities of SMEs and KIBS may compensate the impact of less favourable regional environments. The paper contains two main sections. The first section establishes the theoretical framework of the analysis. At first, the nature of the innovation phenomenon is examined, stressing its interactive character. Then, since some regional environments seem to be more favourable to innovation than others, the question of territorial fatality is addressed. In this respect, the concept of a regional hierarchy featuring the inequality between environments in terms of innovation support is introduced. Finally, two models sketching interactions implying KIBS are discussed: the first arguing that the development of KIBS reinforces the domination of core regions, the second showing a possibility for peripheral regions to escape from territorial fatality thanks to the virtuous circle of innovation linking potentially KIBS and SMEs. The second section examines empirical results. With the help of three distinct statistical treatments, the regional innovation hierarchy is contested. In fact, the empirical evidence establishes that the influence of the type of regional environment is negligible compared to other determinants. Considering that SMEs and KIBS mutually benefit from the virtuous circle associating them, the consequences regarding regional evolution patterns are discussed in the concluding section. --

    Determinants of Innovative Activity in Newly Founded Knowledge Intensive Business Service Firms

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    Innovative activity is performed to a considerable extent in the service sector, namely within the socalled knowledge intensive business services (KIBS). Nevertheless, little is known about the determinants of innovative activity in these firms. In the present paper, some of these determinants are examined on the basis of a recently created dataset of 547 newly founded German firms (KIBS Foundation Survey 2003). The results show that the access to knowledge through cooperation and networking is an important factor determining innovative activity in the KIBS sector, whereas, surprisingly, neither managerial characteristics nor spatial proximity have general influence.

    The impact of regional and functional integration on the post-entry performance of knowledge intensive business service firms

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    Knowledge intensive business service firms (KIBS) are an important element of modern economies and thus attracting increasing interest in scientific research. In the existing literature it is argued that due to the important role of knowledge, innovation and user-producer interaction in the KIBS sector, functional and regional integration are particularly decisive for the firms’ post-entry development. Nevertheless, few existing studies are dealing with questions of entrepreneurship in the KIBS sector using micro firm data. This contribution gives an empirical analysis of the determinants of post-entry performance of KIBS in three German metropolitan regions. Due to the lack of suitable firm micro data, telephone interviews with 547 firm founders have been conducted. By applying multivariate estimation methods it can be shown that functional linkages to knowledge providers, customers and co-operation partners indeed matter for the performance of young KIBS. Regarding regional integration, however, especially a high diversification of spatial reach is proved to be crucial. JEL-Classification: D21, J23, L80, O30 Keywords: Employment growth; Entrepreneurship; Entry; Innovation; Knowledge-intensive business services; Post-entry performance

    The Impact of Functional Integration and Spatial Proximity on the Post-entry Performance of Knowledge Intensive Business Service Firms

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    Knowledge intensive business service firms (KIBS) are an important element of modern economies and thus attracting increasing interest in scientific research. In the existing literature it is argued that due to the important role of knowledge, innovation and userproducer interaction in the KIBS sector, functional integration and spatial proximity are particularly decisive for a firm’s development. Nevertheless, due to the absence of suitable micro data there is a lack of studies empirically analysing the impact of functional integration and regional proximity using micro firm data. Based upon newlyconducted firm micro data in three German metropolitan regions, this paper supplements the literature by giving a multivariate empirical analysis of the determinants of post-entry performance of KIBS. The results of the estimation of firm growth equations show that functional linkages to knowledge providers, customers and co-operation partners indeed matter for the performance of young KIBS. Regarding spatial proximity, however, especially a high diversification of geographical reach is proved to be crucial.Employment growth, Entrepreneurship, Entry, Firm growth, Innovation, Knowledge intensive business services, Post-entry performance

    Entering the KIBS' black box: there must be an angel! (or is there something like a knowledge angel?)

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    The undeniable importance of knowledge and innovation in modern economies justifies the increasing interest that scholars are taking in studying knowledge-intensive busi-ness services (KIBS). Since the mid 1990s, there has been a significant increase in the attention paid to KIBS and their role and functions in innovation systems (den Hertog 2000; Illeris 1991; Miles et al. 1995; Muller/Zenker 2001; Strambach 2001; Tether 2005; Wood 2002). In general terms, the activity of KIBS can be mainly described as the provision of knowledge-intensive inputs to the business process of other organiza-tions, private as well as public sector clients. [...] To sum up, this paper focuses on creative individuals in KIBS, i.e. those persons sus-pected of playing a pertinent role with respect to the innovativeness of their company. We call these specific actors knowledge angels by analogy with business angels. In the same way that business angels can play a decisive role in the development of innova-tive firms through financial support, we assume here that specifically gifted persons can be the knowledge 'catalysts' within KIBS (and in relationship with their clients). The paper contains three sections: the first one formulates the assumption of the exis-tence of knowledge angels and attempts to elaborate a working definition of this spe-cific kind of actor. The second section displays the results of an empirical research pro-ject conducted in France and Germany, whereas the third section synthesizes the find-ings. --

    On the significance of economic structure and regional innovation systems for the foundation of knowledge-intensive business services

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    The shift to new forms of knowledge creation reflects a remarkable increase in the number of knowledge-intensive business service firms (KIBS). KIBS are believed to be one of the main drivers of technological change and economic progress and can be described as users, carriers and sources of innovation (Miles et al. 1995). In addi-tion to macroeconomic implications, newly founded KIBS are considered to play an important role within regional production and innovation systems. As firm founders in early stages of their firms development mostly draw on regional resources and as KIBS acquire knowledge in the course of the interactive process that takes place when the service is provided, an intense interdependency between the regional economic, technological and institutional set-up and newly founded KIBS can be supposed. Within these processes of inter-relationship, proximity between the different actors of the particular innovation and production system clearly matters.However, as entrepreneurship research has hardly ever investigated KIBS and re-search into the role of KIBS in processes of regional change has just begun, this con-tribution analyses the inter-relationships between KIBS foundations and actors within the respective innovation and production system. In a qualitative and conceptual way, in-depth studies of three German metropolitan regions with regard to the foundation of KIBS will be outlined. The results indicate that the necessity to adapt regional structures goes hand in hand with an exploitation of regional knowledge and the crea-tion of bridging institutions in the shape of KIBS foundations. --

    KIBS and industrial development of cities.Labour mobility, innovation and client interaction

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    The paper departs from a seemingly disagreement between theoretical propositions stressing the importance of the KIBS sector as an innovation agent, and empirical results from quantitative innovation surveys. KIBS are increasingly seen to have a strategic role in stimulating innovation processes, particularly in large cities. However, the alleged importance of KIBS does not show up in empirical surveys. The surveys generally regard KIBS (or consultancy firms) to be of less importance as information sources and innovation partners. The paper somewhat supports the conclusions from the empirical surveys, pointing to the fact that parts of the literature attach larger importance to the role of KIBS in innovation processes than can be confirmed by empirical results. However, the low importance attached to KIBS in quantitative surveys may rely on the fact that surveys only seize some of the roles played by KIBS in innovation processes. Surveys do not map, for example, knowledge spillovers occurring through the mobility of workers. The paper demonstrates that many workers left the KIBS sector in Norway to start working in other sectors during parts of the 1990s, signifying a flow of knowledge following the workers out of the KIBS sector. However, the paper also demonstrates that the flow of knowledge via labour mobility first of all benefits the most central parts of Norway. Less knowledge is seen to flow from the KIBS sector in Oslo and the other large cities to other industries and other parts of the country.

    Knowledge-intensive business services as an element of learning regions - the case of Baden-Wurttemberg

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    In the globalizing process, the production of knowledge and the management of information gain increasing strategic importance for the competitiveness of regions. Theoretical conceptions of the learning economy and the learning region emphasise that the capability to learn is crucial for the economic success of firms, regions and national economies. Given this background, the proposal will focus on the significance of knowledge?intensive business services for innovation and learning. So far, knowledge about innovative activities of service firms and their significance in the technological change is existent only to a low extent. For a long time, research concerning technological change as well as innovations focussed on the manufacturing industry and the development and transfer of technological knowledge. The dynamic growth of business?related services has now been documented in numerous studies not only in Germany, but also in other European countries. Their role in innovativeness and competitiveness in the current situation of structural change has, however, received little attention. A major reason is that it is very difficult to establish the quantitative contribution these services make to innovation at both the macro and micro levels. The present state of the statistics for services and innovation make it impossible to determine what the contribution is. From a qualitative point of view, however, this service segment is an important element in the innovation system. The contribution of knowledge?intensive business service firms to innovation is not just the result of their own innovative activities. It also results from the indirect and positive feedback effects which originate on the demand side as a result of the use of the services by client firms. The speech will focus on specific development trends of knowledge?intensive business services in the regional innovation system of Baden?Wuerttemberg, and the role of these services in the present regional restructuring process will be examined.
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