Knowledge Creation vs Knowledge Co-Production: Knowledge Intensive Business Servises and Innovative Activity in EU Regions
Regional economies are continuously evolving shifting from more traditional manufacturing toward more service-oriented production systems. Despite the increasing relevance of services, however, the analysis of innovation at the regional aggregate level has mainly focused on manufacturing, gathering the attention on the role of R&D expenditure as input in the production process and, in some cases, accounting for research-based knowledge externalities. In this paper the role of Knowledge Intensive Business Services is studied and their contribution to the regional aggregate innovation is evaluated. The aim is twofold. First is to provide insights on the role covered by KIBS as a second knowledge infrastructure. Second is to examine the extent to which KIBS operate as bridges between the general purpose analytical knowledge produced by scientific universities and more specific requirement of innovative firms. A role commonly acknowledged to KIBS is in fact that of knowledge transferors. If on the one side it is however clear to whom they transfer knowledge, their client firms, on the other it is not as clear from whom the knowledge is originally transferred. For this reason a major attention in this work is dedicated to scientific universities considered as a primary source of knowledge. Being this knowledge analytical and highly codified, it probably can be more easily accessed by nearby located firms having higher opportunities of research collaboration and less easily by firms located in different regions. It is argued that KIBS, in transferring knowledge from universities to firms, are therefore specially important in the latter case. To test hese hypothesis a knowledge production function is estimated for a sample of 200 EU NUTS II regions including also information of university research and KIBS concentration. Parameters are estimated using the heteroschedasticity-consistent G2SLS estimator for spatial models and the evidence suggests that the contribution of KIBS to regional innovation is considerable. In fact accounting for the knowledge embedded in business services can considerably contribute to explain the cross-regional variation in innovative activities. Furthermore it is find that the KIBS contribution is more sizeable in regions in which there are not scientific universities. The highlighted results have important policy implications asking to rethink to how much effective an R&D-centered innovation strategy could be, at least in some regions.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Pahre, 2009. "Introduction," International Interactions, Taylor & Francis Journals, vol. 35(4), pages 418-419, November.
- Roderik Ponds & Frank van Oort & Koen Frenken, 2010.
"Innovation, spillovers and university--industry collaboration: an extended knowledge production function approach,"
Journal of Economic Geography,
Oxford University Press, vol. 10(2), pages 231-255, March.
- Roderik Ponds & Frank van Oort & Koen Frenken, 2009. "Innovation, spillovers, and university-industry collaboration: An extended knowledge production function approach," Papers in Evolutionary Economic Geography (PEEG) 0903, Utrecht University, Section of Economic Geography, revised Feb 2009.
- Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
- Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring.
- Simone Strambach, 2010. "Knowledge-Intensive Business Services (KIBS)," Chapters,in: Platforms of Innovation, chapter 7 Edward Elgar Publishing.
- Irani Arraiz & David M. Drukker & Harry H. Kelejian & Ingmar R. Prucha, 2010. "A Spatial Cliff-Ord-Type Model With Heteroskedastic Innovations: Small And Large Sample Results," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 592-614.
- Irani Arraiz & David M. Drukker & Harry H. Kelejian & Ingmar R. Prucha, 2008. "A Spatial Cliff-Ord-type Model with Heteroskedastic Innovations: Small and Large Sample Results," CESifo Working Paper Series 2485, CESifo Group Munich.
- Manfred M. Fischer & Attila Varga, 2003. "Spatial knowledge spillovers and university research: Evidence from Austria," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(2), pages 303-322, 05.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2004. "The impact of innovation on economic performance in services," The Service Industries Journal, Taylor & Francis Journals, vol. 24(1), pages 116-130, January.
- Maria Savona & Giulio Cainelli & Rinaldo Evangelista, 2004. "The Impact of Innovation on Economic Performance in Services," Post-Print halshs-00231734, HAL.
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- Nicholas Bardsley & Robin Cubitt & Graham Loomes & Peter Moffatt & Chris Starmer & Robert Sugden, 2009. "Introduction," Introductory Chapters,in: Experimental Economics: Rethinking the Rules Princeton University Press.
- 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.
- Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
- Piras, Gianfranco, 2010. "sphet: Spatial Models with Heteroskedastic Innovations in R," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 35(i01).
- J. Barkley Rosser, 2009. "Introduction," Chapters,in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
- Roderik Ponds & Frank van Oort & Koen Frenken, 2007. "The geographical and institutional proximity of research collaboration," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 423-443, 08.
- Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p424. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.