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Knowledge Services in the Innovation System

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  • Leiponen, Aija

Abstract

This study examines the nature and role of knowledge-intensive business services (KIBS) in the innovation system. KIBS have been found to be important users and disseminators of knowledge. This study assesses their role in creating new knowledge. In addition, issues related to management of knowledge in interfirm relationships are investigated. Particularly, governance of intellectual property through contractual mechanisms is studied. The main results of the study are that KIBS firms can be highly innovative. Innovative service firms invest in standardizing services and underlying procedures. Service innovation is thus associated with organizational learning and knowledge, even though individual experts’ skills are very important for competitive service provision. Radical service innovation requires combining diverse internal and external sources of knowledge, while incremental learning in client relationships facilitates less drastic innovation. KIBS firms’ learning and innovation strategies are also reflected in their contractual techniques to protect and govern knowledge. Particularly relevant are the control rights to service output, because they affect the incentives to innovate. Organization form and innovation are thus closely related. Advances in information and communication technologies improve efficiency of service production and delivery, but they cannot be the sole basis for international expansion. Personal interaction with clients and visible market presence continue to be necessary. Nevertheless, codification and standardization of service packages as opposed to providing purely expert skill-based services support the adoption of and benefiting from these new technologies

Suggested Citation

  • Leiponen, Aija, . "Knowledge Services in the Innovation System," ETLA B, The Research Institute of the Finnish Economy, number 185.
    • Handle: RePEc:rif:bbooks:185
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    Citations

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    Cited by:

    1. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Business services and the changing structure of European economic growth," MPRA Paper 3750, University Library of Munich, Germany.
    2. Paija, Laura, 2003. "Distribution of Intellectual Property Rights and the Development of Technology Suppliers," Discussion Papers 844, The Research Institute of the Finnish Economy.
    3. Henk L.M. Kox, 2004. "The Contribution of Business Services to Aggregate Productivity Growth," Contributions to Economic Analysis, in: Fostering Productivity: Patterns, Determinants and Policy Implications, pages 243-264, Emerald Group Publishing Limited.
    4. Calonius, Mathias, 2002. "Findings about Design and the Economy," Discussion Papers 785, The Research Institute of the Finnish Economy.
    5. Nicoletta Corrocher & Lucia Cusmano & Andrea Morrison, 2009. "Modes of innovation in knowledge-intensive business services evidence from Lombardy," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 173-196, April.
    6. Thomas Brenner & Marco Capasso & Matthias Duschl & Koen Frenken & Tania Treibich, 2018. "Causal relations between knowledge-intensive business services and regional employment growth," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 172-183, February.
    7. Villaschi, Arlindo, 2002. "An Analytical Framework for Understanding the Finnish National System of Innovation," Discussion Papers 783, The Research Institute of the Finnish Economy.
    8. Bourke, Jane & Roper, Stephen & Love, James H., 2020. "Innovation in legal services: The practices that influence ideation and codification activities," Journal of Business Research, Elsevier, vol. 109(C), pages 132-147.
    9. Thorsten Bohn, 2003. "Knowledge Intensive Business Services in Regional Systems of Innovation - Initial Results from the Case of Southeast-Finland," ERSA conference papers ersa03p161, European Regional Science Association.
    10. Maria de Lurdes Calisto & Soumodip Sarkar, 2017. "Innovation and corporate entrepreneurship in service businesses," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 581-600, September.

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