0
Knowledge Intensive Business –  Innovation-intensive and Innovation-enabling? Ian Miles [email_address]
Studies over a decade <ul><li>Original KIBS study 1994/5 </li></ul><ul><li>SI4S included “services in innovation” </li></u...
Growth of Business Service Economy <ul><li>Growth in Services Sectors widely recognised by 1960s </li></ul><ul><li>Early w...
KIBS  (1995)  – Knowledge-Intensive Business Services <ul><li>Rely heavily upon professional/expert knowledge.  </li></ul>...
Sectoral definition of business services  NACE 71-74 (note excludes telecomms, some finance) NACE KIBS Professional KIBS T...
Relative Scale of various   BS in the UK, 2000 Rapid growth, across industrial world 0 10   20   30   40    50    60   70 ...
Technological and Professional Graduate-Intensity   UK CIS3 data analysis by Tether & Swann &quot;professional KIBS&quot; ...
“ Working Conditions”   ambient conditions   ergonomic conditions atypical hours working hours   job demands job control t...
KIBS are often particularly innovative  - CIS2 data Percentage innovating Also – German data (Hipp) shows these are less s...
Hipp - German Survey studied standardisation and innovation <ul><li>Half the innovating service firms thought their innova...
Swedish Survey (Nahlinder) 1000 KIBS firms (Higher for less standardised services) (All higher for more innovative firms)
Knowledge of environments –  internal and external  Competitors Clients, Suppliers Collaborators Regulators Financiers Mar...
Knowledge of environments –  internal and external  What’s the background? What’s the problem? What’s the solution? How to...
Interactive Processes Preliminary Problem Formulation Coproduction and Absorption of Solution Universities  Laboratories  ...
Interactive Innovation External (generic) knowledge resources Firm’s experience of problem KIBS fusing generic and local  ...
Effecting Innovation   1 KIBS Innovation Data production, processing, knowledge generation, generalisation, synthesis meth...
Implications for  Innovation <ul><li>Apart from freeing up resources, and being dispensable… </li></ul><ul><li>KIBS are sp...
Who are the Users? Various  EU  countries, c1995 Intensive users Major markets
Who are the Users? UK 1995 UK - Business Services mainly supporting other services
Who are the Users? UK 1995 France  - Business Services mainly supporting other services, except R&D services
Some issues that arise –   both practical issues and research questions <ul><li>“  Absorption capacity” – what capabilitie...
End of Presentation <ul><li>questions and comments? </li></ul>
Top Ten Users- Computer Services UK  c1995 All services 85% of output goes to top 20
Top Ten Users- R&D Services UK  c1995 85% of output goes to top 20 - 9 are services, many public
Top Ten Users- Other Business Services UK  c1995 84% of output goes to top 20 9 of top 10 are services, plus construction
Upcoming SlideShare
Loading in...5
×

Knowledge Intensive Business Services

1,409

Published on

What are KIBS? why are they so important in growth and innovation?

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,409
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
118
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Knowledge Intensive Business Services"

  1. 1. Knowledge Intensive Business – Innovation-intensive and Innovation-enabling? Ian Miles [email_address]
  2. 2. Studies over a decade <ul><li>Original KIBS study 1994/5 </li></ul><ul><li>SI4S included “services in innovation” </li></ul><ul><li>Environmental services sector </li></ul><ul><li>IPR in KIBS </li></ul><ul><li>CRIC work on business services with ECORYS for EC </li></ul><ul><li>CRIC analysis of KIBS in innovation surveys </li></ul><ul><li>R&D in services (and role of R&D services) </li></ul>Pulling together in KIBS and KISA books including…
  3. 3. Growth of Business Service Economy <ul><li>Growth in Services Sectors widely recognised by 1960s </li></ul><ul><li>Early work paid little attention to business services (producer, intermediate services) - attention focused on consumer and public services– though Greenfield was a pioneering exception </li></ul><ul><li>Rapid business service growth mainly seen as just routine increase of the division of labour </li></ul>Harry I. Greenfield, Manpower and the Growth of Producer Services (New York, Columbia University Press, 1966)
  4. 4. KIBS (1995) – Knowledge-Intensive Business Services <ul><li>Rely heavily upon professional/expert knowledge. </li></ul><ul><li>High employment of scientists, engineers, experts of all types. Often small firms (we now know 95%<10emp). </li></ul><ul><li>Tend to be leading users of Information Technology. </li></ul><ul><li>Help define and solve problems in business processes of users in private and public sectors. </li></ul><ul><li>Products may be primarily information and knowledge resources; or intermediate inputs to clients’ knowledge generating and information processing activities. </li></ul><ul><li>Service often coproduced with client, highly customised or specialised – a fusion of generic and local knowledge. </li></ul>
  5. 5. Sectoral definition of business services NACE 71-74 (note excludes telecomms, some finance) NACE KIBS Professional KIBS Tech-based KIBS <ul><li>Architectural activities • Engineering activities </li></ul><ul><li>Technical testing and analysis </li></ul>Technical 74.2, 74.3 <ul><li>Secretarial and translation activities </li></ul><ul><li>Packing activities • Fairs & exhibitions </li></ul>Other 74.81-84 <ul><li>Security activities • Industrial cleaning </li></ul>Operational 74.6, 74.7 <ul><li>Labour recruitment and provision of personnel </li></ul>Labour recruitment 74.5 <ul><li>Market research • Advertising </li></ul>Marketing 74.13, 74.4 <ul><li>Legal activities • Accounting & tax consultancy </li></ul><ul><li>Management consulting </li></ul>Professional 74.11- .12, 74.14 <ul><li>Research and experimental development on natural sciences and engineering </li></ul><ul><li>… on social sciences and humanities </li></ul>R&D 73.1, 73.2 <ul><li>Hardware consultancy • Software consultancy </li></ul><ul><li>Data processing • Database activities </li></ul>Computer 72.1 - 6 <ul><li>Renting of transport and construction equipment </li></ul><ul><li>Renting of office machinery incl. computers </li></ul>Leasing & renting 71.1, 71.21-23, Most important activities Sectors NACE Classn
  6. 6. Relative Scale of various BS in the UK, 2000 Rapid growth, across industrial world 0 10 20 30 40 50 60 70 VALUE ADDED bn euros
  7. 7. Technological and Professional Graduate-Intensity UK CIS3 data analysis by Tether & Swann &quot;professional KIBS&quot; “ technology-based KIBS”
  8. 8. “ Working Conditions” ambient conditions ergonomic conditions atypical hours working hours job demands job control task flexibility skilled work social support discrimination  Better than average of other sectors Worse than average of other sectors  Real Estate + Business Services, EU15, 2000 skilled work: incs. meeting standards judging quality solving problems few monotonous tasks more complicated tasks doing new things
  9. 9. KIBS are often particularly innovative - CIS2 data Percentage innovating Also – German data (Hipp) shows these are less standardised sectors
  10. 10. Hipp - German Survey studied standardisation and innovation <ul><li>Half the innovating service firms thought their innovations positively impacted client performance/productivity – 16% “very important” productivity, 13% performance - (but only 1/3 of the firms supplying standardised solutions) </li></ul><ul><li>4/5 of software firms thought this (and only 2/5 financial firms, for instance) </li></ul><ul><li>Service innovation>organisational innovation (but this can have an impact too) </li></ul>Services vary in standardisation… some more designed for client
  11. 11. Swedish Survey (Nahlinder) 1000 KIBS firms (Higher for less standardised services) (All higher for more innovative firms)
  12. 12. Knowledge of environments – internal and external Competitors Clients, Suppliers Collaborators Regulators Financiers Markets Social & Institutional Env Natural & Physical Env Process Technology Management Organisational Structure/ Design Routines Techniques Human Resources Product Technology & Design
  13. 13. Knowledge of environments – internal and external What’s the background? What’s the problem? What’s the solution? How to do it? Putting it into practice <ul><li>Knowledge applied to Problem solving: </li></ul><ul><li>Support for self-diagnosis </li></ul><ul><li>Diagnosis </li></ul><ul><li>Prescription </li></ul><ul><li>Configuration </li></ul><ul><li>Implementation of Solutions </li></ul>
  14. 14. Interactive Processes Preliminary Problem Formulation Coproduction and Absorption of Solution Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * Firm’s experience of problem KIBS fusing generic and local knowledge * including previous service encounters Intelligence Diagnosis Prescription (Configuration) Implementation
  15. 15. Interactive Innovation External (generic) knowledge resources Firm’s experience of problem KIBS fusing generic and local knowledge Preliminary Problem Formulation Coproduction and Absorption of Solution Intelligence Diagnosis Prescription Configuration Implementation Knowledge concerning technologies; scientific and engineering principles; innovation-relevant market conditions, regulations, laws More detailed understanding of problem, ways of measuring and monitoring Reduced risk in defining solution; introduction of new types of solution Easier learning and application of experience in combining processes Saving resources that can be applied to core products and processes
  16. 16. Effecting Innovation 1 KIBS Innovation Data production, processing, knowledge generation, generalisation, synthesis methods; presentation tools; specific technologies and techniques for problem area... Client Innovation Reduced risks, accelerated learning, new ideas, training, freer resources, focus on core problems Coproduction of Innovation Interactive learning about problems and potential solutions; new market opportunities
  17. 17. Implications for Innovation <ul><li>Apart from freeing up resources, and being dispensable… </li></ul><ul><li>KIBS are specialists - in acquiring, possessing and communicating knowledge. Alternative to labour mobility . </li></ul><ul><li>Able to draw on generalised knowledge from other firms and sectors. FUSION – and some creation </li></ul><ul><li>Less wedded to heritage, organisational rigidities, factions </li></ul><ul><li>But… how far do they really help clients move in new directions? </li></ul>
  18. 18. Who are the Users? Various EU countries, c1995 Intensive users Major markets
  19. 19. Who are the Users? UK 1995 UK - Business Services mainly supporting other services
  20. 20. Who are the Users? UK 1995 France - Business Services mainly supporting other services, except R&D services
  21. 21. Some issues that arise – both practical issues and research questions <ul><li>“ Absorption capacity” – what capabilities and practices do clients need to make effective selection of KIBS, definitions of problems, use of solutions? </li></ul><ul><li>“ Organisational amnesia” – how can they cope with loss of memory when activities outsourced? </li></ul><ul><li>Knowledge management (a) capture of new learning; (b) across organisational boundaries; (c) across professions? </li></ul><ul><li>Standard solutions vs. sensitivity to organisational culture, national circumstances, etc. </li></ul><ul><li>Professionalism: avoidance of “capture”, of collusion with clients and/or suppliers, of conflicts of interest </li></ul><ul><li>Methods for maintaining and demonstrating quality control, addressing information asymmetries </li></ul><ul><li>Retention and motivation of experts </li></ul>Client side KIBS side
  22. 22. End of Presentation <ul><li>questions and comments? </li></ul>
  23. 23. Top Ten Users- Computer Services UK c1995 All services 85% of output goes to top 20
  24. 24. Top Ten Users- R&D Services UK c1995 85% of output goes to top 20 - 9 are services, many public
  25. 25. Top Ten Users- Other Business Services UK c1995 84% of output goes to top 20 9 of top 10 are services, plus construction
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×