Abstract
Researchers have in the last decade highlighted the increasing importance and continuing expansion of knowledge-intensive business services (KIBS) in developed economies. This study investigates the role of KIBS in the evolution of an innovation system. Interactions between KIBS firms and their clients, and the roles of KIBS in these interactions, are analyzed by examining the evolution of local innovation systems in the Hsinchu and Tainan Science-Based Industrial Parks in Taiwan. Analytical results reveal that cumulative interactions have raised demand for and reliance upon KIBS, and have increased the need for specialized support with various functions. Consequently, KIBS firms are becoming increasingly important in the industrial interface by gradually transforming from being primarily knowledge carriers into influential and symbiotic partners of their clients.
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