IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i5p1823-d1344034.html
   My bibliography  Save this article

Identifying the Role of Knowledge-Intensive Business Services in the Korean Economy as a Sustainable Innovation Tool Using Input–Output Analysis

Author

Listed:
  • Yong Jae Shin

    (Division of Artificial Intelligence Convergence, Sahmyook University, Seoul 01795, Republic of Korea)

Abstract

This study aimed to determine the role of KIBSs as a tool for sustainable innovation in a country’s economic system. Specifically, the degree and role of their impact on the Korean economy were analyzed and compared for the entire KIBS sector, T-KIBSs (a new technology-based professional service), P-KIBSs (a traditional professional service), and every subsector. For this purpose, the demand inducement model, supply inducement model, and interlinkage effects method were applied using the 2019 input–output table published in 2022. The analysis showed that the indirect production inducement effect of the entire KIBS industry on other industries was KRW 0.800, the indirect added value inducement effect was KRW 0.330, and the supply disruption effect was KRW 1.144. For T-KIBS, the indirect production inducement effect was KRW 0.687, the indirect added value inducement effect was KRW 0.272, and the supply disruption effect was KRW 0.730. For P-KIBSs, the indirect production inducement effect was KRW 1.472, the indirect added value inducement effect was KRW 0.646, and the supply disruption effect was KRW 2.657. Finally, regarding the economic ripple effect of the KIBS subsector, legal and management support services and advertisements corresponding to P-KIBSs showed higher figures than the T-KIBS subsectors in all sectors, including production inducement, the added value inducement effect, and the supply disruption effect. These results revealed that in the South Korean economic system, KIBSs contribute to production and value addition across all industrial sectors. It is apparent that the absence of supply significantly disrupts other industries. Furthermore, production inducement effects are evenly distributed among all the KIBS subsectors in the secondary and tertiary sectors, while the value-added effects have a greater impact on the tertiary sector. In terms of the supply shortage effects, the secondary sector experiences a more significant impact. This underscores the crucial role of KIBSs in sustaining and enhancing overall economic activity in South Korea.

Suggested Citation

  • Yong Jae Shin, 2024. "Identifying the Role of Knowledge-Intensive Business Services in the Korean Economy as a Sustainable Innovation Tool Using Input–Output Analysis," Sustainability, MDPI, vol. 16(5), pages 1-24, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:1823-:d:1344034
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/5/1823/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/5/1823/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Simone Strambach & Frederik Lindner, 2017. "Border-crossing sustainable innovation processes: German knowledge-intensive business services (KIBS) in green construction," Chapters, in: Leïla Kebir & Olivier Crevoisier & Pedro Costa & Véronique Peyrache-Gadeau (ed.), Sustainable Innovation and Regional Development, chapter 3, pages 63-85, Edward Elgar Publishing.
    2. Yipeng Liu & Christoph Lattemann & Yijun Xing & David Dorawa, 2019. "The emergence of collaborative partnerships between knowledge-intensive business service (KIBS) and product companies: the case of Bremen, Germany," Regional Studies, Taylor & Francis Journals, vol. 53(3), pages 376-387, March.
    3. Pina, Katia & Tether, Bruce S., 2016. "Towards understanding variety in knowledge intensive business services by distinguishing their knowledge bases," Research Policy, Elsevier, vol. 45(2), pages 401-413.
    4. Vicent Almenar-Llongo & Javier Muñoz- de-Prat & Mónica Maldonado-Devis, 2023. "Growth of total productivity of the factors, innovation and spillovers from advanced business services," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(2), pages 2172739-217, July.
    5. Frank Moulaert & Faridah Djellal, 1995. "Information Technology Consultancy Firms: Economies of Agglomeration from a Wide-area Perspective," Urban Studies, Urban Studies Journal Limited, vol. 32(1), pages 105-122, February.
    6. Gregor Weber & Ruxandra Maria Mateescu & Steffen Lange & Manfred Rauch, 2016. "Knowledge Intensive Business Services (KIBS) in the Context of Changing Energy Economics in Germany," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(41), pages 1-89, February.
    7. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    8. Lafuente, Esteban & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2017. "Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses," International Journal of Production Economics, Elsevier, vol. 192(C), pages 19-28.
    9. Alicia Rodríguez & María Jesús Nieto & Luis Santamaría, 2018. "International collaboration and innovation in professional and technological knowledge-intensive services," Industry and Innovation, Taylor & Francis Journals, vol. 25(4), pages 408-431, April.
    10. Dirk Czarnitzki & Alfred Spielkamp, 2003. "Business services in Germany: bridges for innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 23(2), pages 1-30, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodriguez, Mercedes & Doloreux, David & Shearmur, Richard, 2017. "Variety in external knowledge sourcing and innovation novelty: Evidence from the KIBS sector in Spain," Technovation, Elsevier, vol. 68(C), pages 35-43.
    2. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    3. Jörn Block & Christian Fisch & Kenta Ikeuchi & Masatoshi Kato, 2022. "Trademarks as an indicator of regional innovation: evidence from Japanese prefectures," Regional Studies, Taylor & Francis Journals, vol. 56(2), pages 190-209, February.
    4. Seungil Yum, 2019. "The interaction between knowledge-intensive business services and urban economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 53-83, August.
    5. Djellal, Faridah & Gallouj, Faïz & Miles, Ian, 2013. "Two decades of research on innovation in services: Which place for public services?," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 98-117.
    6. Jeroen Content & Nicola Cortinovis & Koen Frenken & Jacob Jordaan, 2022. "The roles of KIBS and R&D in the industrial diversification of regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 29-64, February.
    7. Daria Ciriaci & Daniela Palma, 2012. "To what extent are knowledge-intensive business services contributing to manufacturing? A subsystem analysis," JRC Research Reports JRC71097, Joint Research Centre, revised Aug 2012.
    8. Kluck, Christian, 2012. "Zur Beschäftigungsdynamik in der Wissensökonomie: Die Entwicklung von wissensintensiven-unternehmensorientierten Dienstleistungen in Deutschland," Beiträge zur Wirtschaftsgeographie und Regionalentwicklung 2-2012, Universität Bremen, Institut für Geographie.
    9. Sheshadri Chatterjee & Ranjan Chaudhuri & Demetris Vrontis & Adnane Maalaoui, 2023. "Internationalization of family business and its performance: examining the moderating role of digitalization and international networking capability," Review of Managerial Science, Springer, vol. 17(7), pages 2443-2470, October.
    10. Christiane Hipp & Jorge Gallego & Luis Rubalcaba, 2015. "Shaping innovation in European knowledge-intensive business services," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 41-55, March.
    11. Daria Ciriaci & Sandro Montresor & Daniela Palma, 2013. "Do KIBS make manufacturing more innovative? An empirical investigation for four European countries," JRC Working Papers on Corporate R&D and Innovation 2013-04, Joint Research Centre.
    12. Lombardi, Silvia & Santini, Erica & Vecciolini, Claudia, 2022. "Drivers of territorial servitization: An empirical analysis of manufacturing productivity in local value chains," International Journal of Production Economics, Elsevier, vol. 253(C).
    13. Bustinza, Oscar F. & Lafuente, Esteban & Rabetino, Rodrigo & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Make-or-buy configurational approaches in product-service ecosystems and performance," Journal of Business Research, Elsevier, vol. 104(C), pages 393-401.
    14. Daniel Feser, 2023. "Innovation intermediaries revised: a systematic literature review on innovation intermediaries’ role for knowledge sharing," Review of Managerial Science, Springer, vol. 17(5), pages 1827-1862, July.
    15. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    16. Matthias Firgo & Peter Mayerhofer, 2016. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 3: Zur Standortstruktur von wissensintensiven Unternehmensdiensten – Fakten, Bestimmungsgründe, regionalpo," WIFO Studies, WIFO, number 59427, April.
    17. Veronika Belousova & Oxana Bondarenko & Nikolay Chichkanov & Denis Lebedev & Ian Miles, 2022. "Coping with Greenhouse Gas Emissions: Insights from Digital Business Services," Energies, MDPI, vol. 15(8), pages 1-26, April.
    18. Xing, Yijun & Liu, Yipeng, 2023. "Integrating product-service innovation into green supply chain management from a life cycle perspective: A systematic review and future research directions," Technovation, Elsevier, vol. 126(C).
    19. Mariachiara Barzotto & Lisa De Propris, 2021. "The value of firm linkages in the age of industry 4.0: a qualitative comparative analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(2), pages 245-272, October.
    20. Zoltán Bujdosó & János Pénzes & Lóránt Dávid & Szilárd Madaras, 2016. "The Spatial Pattern of KIBS and their Relations with the Territorial Development in Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(41), pages 1-73, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:1823-:d:1344034. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.