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KIBS in Peripheral Regions: Major Outlines

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  • Noronha, Teresa

    ()
    (University of Algarve)

Abstract

Firms, in general, have an absorptive capacity that permits them to recognize the value of new, external information, assimilate it, and apply it to commercial goals. This capacity results from their level of prior related knowledge and they can become creators of innovation in a context of micro and small sized young firms, coming up with innovative outputs. The first goal of this paper is to pursue this discussion in the context of KIBS (Knowledge Intensive Business Services) which are non-material firms, providing intangible and highly personalized services submitted to the general market rules. Also, the geography of KIBS will be emphasized by pointing out the restrictions related to its major role in the peripheral areas of the world. Therefore, this paper presents an analysis of cross country experiences, identifying bottlenecks and common results to demonstrate the major role of KIBS in such environments. The conclusion of the research is twofold: For peripheries, the innovation capacity of KIBS depends on their internal capacity to innovate (as pushing forces), but for KIBS, their main function depends on the readiness of their clients to use their skills to innovate (as pulling forces). This last determinant varies with the readiness of their clients to network and innovate and with their labor force to learn.

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Paper provided by CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve in its series Spatial and Organizational Dynamics Discussion Papers with number 2013-4.

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Length: 18 pages
Date of creation: 13 Feb 2013
Date of revision:
Handle: RePEc:ris:cieodp:2013_004

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Postal: University of Algarve, Faculty of Economics, Campus de Gambelas, 8005-139 Faro, Portugal, email of President of the Centre: mtvaz@ualg.pt
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Keywords: KIBS; Business services; Knowledge management; Peripheries;

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  1. José A. Camacho & Mercedes Rodríguez, 2005. "How innovative are services? an empirical analysis for Spain," The Service Industries Journal, Taylor & Francis Journals, vol. 25(2), pages 253-271, March.
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  8. Faridah Djellal & Faïz Gallouj, 2012. "L'innovation dans les services publics," Post-Print hal-00758079, HAL.
  9. Morris, Timothy & Empson, Laura, 1998. "Organisation and expertise: An exploration of knowledge bases and the management of accounting and consulting firms," Accounting, Organizations and Society, Elsevier, vol. 23(5-6), pages 609-624.
  10. Gallouj, Faiz & Weinstein, Olivier, 1997. "Innovation in services," Research Policy, Elsevier, vol. 26(4-5), pages 537-556, December.
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  12. Elena Huergo & Jordi Jaumandreu, 2004. "How Does Probability of Innovation Change with Firm Age?," Small Business Economics, Springer, vol. 22(3_4), pages 193-207, 04.
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