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KIBS in Peripheral Regions: Major Outlines

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Abstract
Firms, in general, have an absorptive capacity that permits them to recognize the value of new, external information, assimilate it, and apply it to commercial goals. This capacity results from their level of prior related knowledge and they can become creators of innovation in a context of micro and small sized young firms, coming up with innovative outputs. The first goal of this paper is to pursue this discussion in the context of KIBS (Knowledge Intensive Business Services) which are non-material firms, providing intangible and highly personalized services submitted to the general market rules. Also, the geography of KIBS will be emphasized by pointing out the restrictions related to its major role in the peripheral areas of the world. Therefore, this paper presents an analysis of cross country experiences, identifying bottlenecks and common results to demonstrate the major role of KIBS in such environments. The conclusion of the research is twofold: For peripheries, the innovation capacity of KIBS depends on their internal capacity to innovate (as pushing forces), but for KIBS, their main function depends on the readiness of their clients to use their skills to innovate (as pulling forces). This last determinant varies with the readiness of their clients to network and innovate and with their labor force to learn.

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  • Noronha, Teresa, 2013. "KIBS in Peripheral Regions: Major Outlines," Spatial and Organizational Dynamics Discussion Papers 2013-4, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve.
    • Handle: RePEc:ris:cieodp:2013_004
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    More about this item

    Keywords

    KIBS; Business services; Knowledge management; Peripheries;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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