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Knowledge Intensive Business Services As Generators Of Innovations

  • Marina Doroshenko

    ()

    (National Research University Higher School of Economics Institute for Statistical Studies and Economics of Knowledge, Head of Analytical Department)

  • Ian Miles

    ()

    (National Research University Higher School of Economics Institute for Statistical Studies and Economics of Knowledge, Head, Laboratory of Economics of Innovation)

  • Dmitri Vinogradov

    ()

    (United Kingdom, Colchester, Wivenhoe Park, CO4 3SQ Essex Business School, University of Essex Lecturer in Finance)

Knowledge Intensive Business Services (KIBS) are widely argued to be important actors in innovation systems. They are active both innovating themselves, and by providing their clients with important knowledge and learning opportunities. This study uses survey data to investigate the mechanisms of knowledge transfer and innovativeness improvement through the provision of KIBS. The empirical core of the paper is a set of Russian surveys of KIBS and their clients: KIBS are a fairly new phenomenon in Russia, so this provides an opportunity to contrast KIBS supplier-client relationships featuring more and less experienced customers. Many of the KIBS firms’ services are highly tailored to customer specificities, and we consider how far this is minor customisation and how far novel products (and thus potentially product innovations) are involved. These services typically involve KIBS consumers into a coproduction process, where both the formal supplier and the formal user of the service are engaged together in service production. Knowledge transfers through learning-by-doing in such cases affect customers' propensity to innovate and improve their absorptive capacity. The paper concludes that the generation of innovations through KIBS may well be a self-sustaining process. In this process, service providers are incentivised to engage in service innovations by more innovative customers’ demand for highly individualised services. In turn, the process stimulates the innovativeness of customers, as they engage in learning-by-doing through coproduction

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Paper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 12/STI/2013.

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Length: 41 pages
Date of creation: 2013
Date of revision:
Publication status: Published in WP BRP Series: Science, Technology and Innovation / STI, June 2013, pages 1-41
Handle: RePEc:hig:wpaper:wpbrp12sti2013
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  1. Vinogradov, Dmitri, 2012. "Destructive effects of constructive ambiguity in risky times," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1459-1481.
  2. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
  3. 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.
  4. 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.
  5. Tether, Bruce S. & Tajar, Abdelouahid, 2008. "Beyond industry-university links: Sourcing knowledge for innovation from consultants, private research organisations and the public science-base," Research Policy, Elsevier, vol. 37(6-7), pages 1079-1095, July.
  6. 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.
  7. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
  8. Davies, Andrew & Brady, Tim, 2000. "Organisational capabilities and learning in complex product systems: towards repeatable solutions," Research Policy, Elsevier, vol. 29(7-8), pages 931-953, August.
  9. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
  10. Réjean Landry & Nabil Amara & David Doloreux, 2010. "Knowledge-exchange strategies between KIBS firms and their clients," The Service Industries Journal, Taylor & Francis Journals, vol. 32(2), pages 291-320, August.
  11. Love, James H. & Roper, Stephen & Bryson, John R., 2011. "Openness, knowledge, innovation and growth in UK business services," Research Policy, Elsevier, vol. 40(10), pages 1438-1452.
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