Innovative Behaviour and Performance of Technology-based Knowledge-Intensive Business Service: An empirical study

Abstract

The aim of this paper is to learn more about how technology-based knowledge-intensive business service firms (t-KIBS) innovate. To do so, we examine the range of innovation practices employed by a sample of 50 t-KIBS in Catalonia, Spain and the impact these practices have on innovation and business results. We distinguish between practices widely used among manufacturing and services firms and practices that are more typically used by services. Our results reveal that, on the one hand, practices common to manufacturing and services are significant in explaining improvements in both innovation and financial performance, while on the other hand, innovation patterns and practices that are more often used in services are not significant in explaining either innovative outputs or increases in operational profits and returns. These results are important for refining the design of innovation policies at a regional level in Catalonia, as well as abroad. Further research is needed to establish whether the innovative behaviour of t-KIBS is more akin to that of manufacturing firms than to that of service firms.