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Innovation modes and strategies in knowledge intensive business services

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Abstract

This study identifies differences in research and development and innovation activities, expenditures, modes and strategies in knowledge intensive business services (KIBS), finance, and manufacturing. By applying descriptive and exploratory statistical methods on firm-level data, it succeeds in constructing distinctive innovation profiles for the sectors. The results indicate differences in the role of international markets for innovation production and in the existence of innovator vs. modifier by sectors. Moreover, the role of KIBS is central in emerging research and innovation systems as they act as knowledge transmitters between markets and science.

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Notes

  1. Knowledge intensive business services include computer and related activities (NACE K72), Research and development (NACE K73), Architectural and engineering activities and consultancy (NACE K74.2) and Technical testing and analysis (NACE K74.3). The codes refer to NACE Rev. 1.1.

  2. The definition contains: wholesale, trade (NACE 50–52); transport, post, telecoms (NACE 60–64); financial services, insurances (NACE 65–67); computer, R&D, legal and accounting services (NACE 72–74).

  3. More exactly, services account for 49 % and manufacturing 51 % of full-time equivalent researchers. Share of R&D personnel of total employment in the business enterprise sector is 2.15 %, which is the highest in the EU. The share of full-time equivalent R&D personnel in 2008 is in manufacturing 46 % and in services 54 %. (Eurostat Database 2010).

  4. For more information on the importance of manufacturing R&D in Luxembourg, see for example: www.innovation.public.lu/html/publication/publication_detail.jsp?idUrl=3066 www.innovation.public.lu/html/publication/publication_detail.jsp?idUrl=2682 www.innovation.public.lu/html/publication/publication_detail.jsp?idUrl=2411.

  5. In Estonia, Cyprus, Latvia and Slovakia the share of R&D personnel in services was almost 60 %. (European Commission 2004).

  6. The firm-level microdata coming from the community innovation survey and used in this work was accessed with the permission of DG Eurostat, European Commission, at the Microdata Safe Center in Luxembourg. The author bears solely the responsibility for the results, their interpretation and conclusions.

  7. The CIS covers the following activities: mining and quarrying (NACE 10–14); manufacturing (NACE 15–37); electricity, gas and water supply (NACE 40–41); wholesale trade (NACE 51); transport, storage and communication (NACE 60–64); financial intermediation (NACE 65–67); computer and related activities (NACE 72); research and development (NACE 73); architectural and engineering activities (NACE 74.2); technical testing and analysis (NACE 74.3). Countries may include additional economic activities into the sample if they are deemed central in the national innovation system. In Luxembourg, the CIS excludes mining and quarrying (NACE 10–14) due to non-existence of firms in this category, but it includes research and development (NACE 73) without public research Centers.

  8. R&D expenditures include intra- and extra-mural R&D expenditures, investment in acquisition of machinery and other external knowledge.

  9. Summing up the shares of new-to-market innovator and modifier whose main markets are foreign (domestic) market.

  10. Figure relates to the situation in April 2008. www.anna-web.com.

  11. Tetrachoric correlation is applied when the variables are dichotomous.

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Authors and Affiliations

  1. Economics of Innovation and Service Valuation Unit, Service Science and Innovation Department, Public Research Centre Henri Tudor, 29, Avenue John F. Kennedy, 1855, Luxembourg, Luxembourg

    Anna-Leena Asikainen

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  1. Anna-Leena Asikainen
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Correspondence to Anna-Leena Asikainen.

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Asikainen, AL. Innovation modes and strategies in knowledge intensive business services. Serv Bus 9, 77–95 (2015). https://doi.org/10.1007/s11628-013-0219-5

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