Abstract
Knowledge-intensive business service firms (KIBS) have been found to be instrumental for the renaissance of local manufacturing sectors. The value-adding role of KIBS to local manufacturing performance is likely to vary according to the functions they fill within the local hybrid value chain. The research objective of the study presented in this paper is to identify whether the positive effect of KIBS on the contribution of manufacturing businesses to the local economy is stronger in regions with a greater technology-based KIBS sector (T-KIBS), as compared to professional-based KIBS (P-KIBS). To reach this objective, we employ regression models and cluster analysis on a database built from two separate sources (Regional Entrepreneurship and Development Index and Eurostat) that includes information for the years 2012-2014 for 121 European Union (EU) regions from 24 countries. The main findings indicate that the territorial presence of an active hybrid value chain composed of a mixture of manufacturing and T-KIBS businesses is associated with greater average manufacturing productivity, in terms of gross-value added (GVA) per worker. Therefore, the local presence of T-KIBS firms pays-off for manufacturers and the territorial product-service innovation system.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.