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Do KIBS make manufacturing more innovative? An empirical investigation for four European countries




The paper aims at estimating the innovation impact of the vertical integration of knowledge intensive business services (KIBS) into manufacturing. Referring to the vertically integrated sectors of an economy allows innovative knowledge, which is transferred directly and indirectly from KIBS to manufacturing in an embodied way, to be measured. Its impact on manufacturing innovation is then estimated. By merging OECD data on sectoral R&D and input-output tables with sectoral patent applications from the Pastat dataset, a panel of 18 manufacturing sectors is built up for the four largest European countries – France, Germany, Italy and the UK – spanning from the mid-90s to the mid-00s. The more innovative sectors are actually those making more intensive and extensive use of R&D embodied into KIBS production flows. In policy terms, strengthening the bridge between KIBS and manufacturing appears to be as crucial as supporting KIBS activities and service innovations.Length: 29 pages

Suggested Citation

  • 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 (Seville site).
  • Handle: RePEc:ipt:wpaper:201304

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    Cited by:

    1. Machado Léo, Ricardo & Tello‐Gamarra, Jorge, 2016. "Inovac¸ão em servic¸os: estado da arte e perspectivas futuras
      [Innovation in services: state of the art and future perspectives]
      ," MPRA Paper 82195, University Library of Munich, Germany, revised 29 Mar 2017.
    2. Stefano Costa & Federico Sallusti, 2016. "Message from an Italian bottleneck: inter-industry relationships and efficiency spillover," Working Papers LuissLab 16128, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    3. Elche,Dioni & Consoli, Davide & Sánchez-Barrioluengo, Mabel, 2017. "From brawn to brains: manufacturing-KIBS interdependency," INGENIO (CSIC-UPV) Working Paper Series 201701, INGENIO (CSIC-UPV).
    4. Alberto Botta, 2014. "Structural asymmetries at the roots of the eurozone crisis: what's new for industrial policy in the EU?," PSL Quarterly Review, Economia civile, vol. 67(269), pages 169-216.

    More about this item


    KIBS; vertically integrated sectors; embodied R&D flows;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P00 - Economic Systems - - General - - - General


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