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Abstract
Several studies have emphasized the role of knowledge-intensive business services (KIBS) in fostering innovation in metropolitan areas and regional innovation systems. Such areas are capable of expressing a strong demand for KIBS and consequently stimulate the rise and growth of KIBS. Despite an abundance of literature on KIBS emphasizing the relevance of spatial proximity to customers, many KIBS develop relationships on a broader national or even international scale. No studies have focused explicitly on this apparent discrepancy as yet. The aim of this paper is therefore to fill this theoretical and empirical gap by explaining the firm-level factors relating to the market extension of KIBS within the framework of regional innovation systems. Our analysis is based on a quantitative study on more than 150 KIBS supplying design or communication services located in the Veneto region (north-eastern Italy), an area that can be described as a regional innovation system. Five variables were considered, that is, size, experience, service standardization, investments in network technologies and relational intensity. Our results confirm that three of these variables, but not service standardization and relational intensity, correlate positively with the market extension of KIBS. Policy implications are also discussed.
Notes
The definition of the KIBS sector is not consistent across different studies, but most of them include the NACE codes 72 (computer and related activities) and 73 (research and experimental development) and a set of sub-sectors from code 74 (other business activities) (Miles, Citation2005; Muller & Doloreux, Citation2009).
Hereafter, we use the acronym KIBS to indicate both the knowledge-intensive services and the organizations providing them.