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KIBS for public needs

Dmitri Vinogradov (), Elena Shadrina () and Marina Doroshenko
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Dmitri Vinogradov: University of Glasgow
Elena Shadrina: National Research University Higher School of Economics

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2018, vol. 45, issue 4, 443-473

Abstract: Abstract Knowledge intensive business services (KIBS) are special in that they rely on knowledge exchange between service providers and consumers and thus intensive cooperation between the two parties is essential at all stages. This implies approaches to find the “right” provider may have to differ from those used in the sector of more homogeneous services and goods. Public procurement regulation aims to improve competitiveness, yet does this help achieving the best value for money in the procurement of KIBS? Legislative constraints on the types of admissible public procurement mechanisms may have an undesirable effect on the provider selection, meaning that services may not be purchased from the most efficient or the most suitable provider. As a benchmark, private consumers are unconstrained in their choice of KIBS providers. We exploit this difference to study the efficiency of KIBS purchases by the public sector, as compared to that in the private sector. Using the 2007 and 2011 waves of a unique survey of KIBS consumers in Russia, we find, inter alia, that the public sector reports lower satisfaction from KIBS and admits a lower level of co-production than the private sector. Our main recommendations refer to the optimal choice of public procurement methods.

Keywords: Knowledge-intensive business services; Public procurement (search for similar items in EconPapers)
JEL-codes: H57 L84 (search for similar items in EconPapers)
Date: 2018
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Working Paper: KIBS for Public Needs (2015) Downloads
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