The heterogeneity of services and the differential effects on business and territorial innovation

Abstract

The innovative results of firms depend upon their specific characteristics and their ability to weave together their competences with the innovative resources in their environment. Different approaches have underlined the importance of location and the context of business innovation. In particular, the existence of knowledge intensive services (KIS) enables firms to create and commercialise new processes, products and services. However, KIS can present substantial differences in their capacity to contribute to innovation. This article examines the relationship between KIS and business innovation and establishes a KIS typology in order to pinpoint its effects on business innovation. The results of the applied analysis show that although there is a positive relationship between the uses of KIS, in terms of innovative business results, the outcomes are not the same for all types of KIS. While the use of KIS of technology centres positively affects the innovative level of the projects of firms, the results for private consultancies are not conclusive.