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KIBS for Public Needs

Author

Listed:
  • Dmitri Vinogradov

    () (University of Essex)

  • Elena Shadrina

    () (National Research University Higher School of Economics)

  • Marina Doroshenko

    () (National Research University Higher School of Economics)

Abstract

Knowledge intensive business services (KIBS) are a rapidly developing sector of modern economies. Numerous studies suggest that KIBS facilitate knowledge exchange between providers and consumers, and improve the innovativeness of the latter. However, because KIBS are strongly reliant on service co-production by the customer and provider working in partnership, intensive cooperation between the two parties is essential. Public procurement may offer supporting mechanisms for this sector, both directly (by purchasing services) and indirectly (by demonstrating the benefits of KIBS consumption, which may stimulate a demand for them from the private sector). Yet, legislative constraints on the types of admissible public procurement mechanisms may have an undesirable effect on the provider selection, meaning that services may not be purchased from the most efficient or the most suitable provider. Alongside this, public bodies are known to be managerially less efficient than private firms, partly due to their distorted system of incentives. These key differences between the public and private sectors motivated us to study the efficiency of publicly procuring KIBS. In particular, we find that consumers of KIBS in the public sector report lower satisfaction from KIBS and admit a lower level of co-production than the private sector. Our main recommendations refer to the optimal choice of procurement mechanisms and the system of incentives in public institutions

Suggested Citation

  • Dmitri Vinogradov & Elena Shadrina & Marina Doroshenko, 2015. "KIBS for Public Needs," HSE Working papers WP BRP 27/PA/2015, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:27/pa/2015
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    File URL: http://www.hse.ru/data/2015/06/22/1083893607/27PA2015.pdf
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    References listed on IDEAS

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    1. Marina Doroshenko & Ian Miles & Dmitry Vinogradov, 2014. "Knowledge Intensive Business Services: The Russian Experience," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 8(4), pages 24-39.
      • Marina Doroshenko & Ian Miles & Dmitry Vinogradov, 2014. "Knowledge Intensive business services: the Russian experience," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 8(4 (eng)), pages 24-39.
    2. Anna Balsevich & Svetlana Pivovarova & Elena Podkolzina, 2011. "Information Transparency in Public Procurement: How it Works in Russian Regions," HSE Working papers WP BRP 01/EC/2011, National Research University Higher School of Economics.
    3. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    4. Cristiano Antonelli, 1998. "Localized technological change, new information technology and the knowledge-based economy: The European evidence," Journal of Evolutionary Economics, Springer, vol. 8(2), pages 177-198.
    5. repec:wsi:ijimxx:v:04:y:2000:i:04:n:s136391960000024x is not listed on IDEAS
    6. Marina Doroshenko & Ian Miles & Dmitri Vinogradov, 2013. "Knowledge Intensive Business Services As Generators Of Innovations," HSE Working papers WP BRP 12/STI/2013, National Research University Higher School of Economics.
    7. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems," Research Policy, Elsevier, vol. 30(9), pages 1501-1516, December.
    8. Tether, Bruce S. & Hipp, Christiane & Miles, Ian, 2001. "Standardisation and particularisation in services: evidence from Germany," Research Policy, Elsevier, vol. 30(7), pages 1115-1138, August.
    9. Bruce Tether, 2003. "The sources and aims of innovation in services: Variety between and within sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 481-505.
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    Cited by:

    1. Elena Shadrina & D. Vinogradov, 2013. "PPP Legislation: an economic justification and international experience," Public administration issues, Higher School of Economics, issue 4, pages 166-190.

    More about this item

    Keywords

    knowledge-intensive business services; public procurement;

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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