An Empirical Study on the Relationship of Regional Entrepreneurial Activities and Utilization of Digital Technology in Knowledge-Intensive Business Services (KIBS)

Nobuo Kobayashi () and Takeshi Mori
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Nobuo Kobayashi: School of Economics, Kwansei Gakuin University
Takeshi Mori: Nomura Research Institute

No 234, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper presents an analysis of factors that promote and suppress the regional start-up activities of knowledge-intensive business services (KIBS) in Japan, based on the Digital Capability Index (DCI). The results showed that rapid progress in the digitization of public services and local residents f high ICT skills were factors that promoted KIBS start-ups. In addition, the results revealed that the establishment of a high-speed information and communication environment in the region has promoted T-KIBS startups, which utilize the Internet. Regarding factors not included in the DCI, the results showed a positive effect of the concentration of human resources and business establishments in metropolitan areas, which was in line with the findings of previous studies. In contrast, the start-up rates of T-KIBS were high in areas where the ratios of day and night populations were low. This finding suggests that although the main customers of T-KIBS are companies in metropolitan areas, such as Tokyo and Osaka, they locate their offices in the suburbs, where commercial rents are lower than in urban areas.

Keywords: Knowledge Intensive Business Services (KIBS); Digital Capability Index (DCI); start-up activity (search for similar items in EconPapers)
JEL-codes: L26 L84 L86 R30 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2022-01
New Economics Papers: this item is included in nep-cse, nep-ent, nep-geo, nep-ict, nep-knm, nep-sbm and nep-ure
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