8. KIBS are often particularly innovative - UK CIS4 data Manufactured product Service Product (good) (service) UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Product Innovation
9. KIBS are often particularly innovative 2 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Process Innovation
10. KIBS are often particularly innovative 4 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA NOVEL Innovation: new to market or industry
11. KIBS are often particularly innovative 5 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Innovation Expenditure per employee
12. Structure of Innovation Spend in Services UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Innovation Expenditure
13. Business Services UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Innovation Expenditure
14. How important are these services? Eurostat, 2007, European Business 15.5% EU employment; 14.5% VA
15. Relative Scale of various BS in the UK, 2000 Rapid growth, across industrial world 0 10 20 30 40 50 60 70 VALUE ADDED bn euros
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17. Knowledge of internal characteristics and external environments – Competitors Clients, Suppliers Collaborators Regulators Financiers Markets Social & Institutional Env Natural & Physical Env Process Technology Management Organisational Structure/ Design Routines Techniques Human Resources Product Technology & Design Health and Safety
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19. Intermediators Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * Firm’s absorption of knowledge KIBS synthesising and translating generic knowledge Intelligence Diagnosis Prescription (Configuration) Implementation
20. Its an Interactive Process! Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * * including previous service encounters Client’s knowledge and experienced problem KIBS fusing generic and local knowledge – and creating new knowledge through R&D etc Intelligence Diagnosis Prescription (Configuration) Implementation Preliminary Problem Formulation Coproduction and Absorption of Solution
21. Interactive Innovation External (generic) knowledge resources Firm’s experience of problem KIBS fusing generic and local knowledge Preliminary Problem Formulation Coproduction and Absorption of Solution Intelligence Diagnosis Prescription Configuration Implementation Knowledge of environments & technologies; scientific & engineering principles; innovation-relevant market conditions, regulations, laws Better understanding of problem, ways of measuring and monitoring Reduced risk in defining solution; introduction of new types of solution Easier learning and application of experience in combining processes Saving resources that can be applied to core products, processes - & other goals
22. Effecting Innovation 1 KIBS Innovation Data production, processing, knowledge generation, generalisation, synthesis methods; presentation tools; specific technologies and techniques for problem area... Client Innovation Reduced risks, accelerated learning, new ideas, training, freer resources, focus on core problems Coproduction of Innovation Interactive learning about problems and potential solutions; new market opportunities
23. Relations with Clients are Central Client Problem formulation Agreement on shared problem definition Interaction around features of problem Delivery of solution Implementation of solution Reaction to client’s formulation of problem Agreement on shared problem definition Interaction around features of problem Formulation of solution Delivery of solution Ongoing support – “afterservice” Information interchanges Service Firm
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25. Swedish KIBS Survey (N ä hlinder) 1000 KIBS firms (Higher for less standardised services) (All higher for more innovative firms)
27. Hipp - German Survey Services vary in standardisation… some more designed for clients… especially in KIBS Surprisingly low specialisation – may depend on question – cf Nahlinder
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29. But what is the User’s View ? PWC study of consultants’clients, 2006 180 clients, large range of consultancy services
31. Who are the Users? Input Output data Various EU countries, c1995 Intensive users Major markets
32. Survey of Swedish KIBS Services Manufacturing Public Sector Households Ranking of users First Second Third Fourth
33. Who are the Users? UK 1995 UK - Business Services mainly supporting other services Computer R&D Other bus. services services services
34. Who are the Users? France 1995 France - Business Services mainly supporting other services, except R&D services Computer R&D Other bus. services services services
35. Top Ten Users- R&D Services UK c1995 85% of output goes to top 20 - 9 are services, many public