Do KIBS make manufacturing more innovative? An empirical investigation for four European countries

Daria Ciriaci, Sandro Montresor () and Daniela Palma ()
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Daniela Palma: Italian National Agency for New Technologies, Energy and Sustainable Economic Development

No 2013-04, JRC Working Papers on Corporate R&D and Innovation from Joint Research Centre

Abstract: The paper aims at estimating the innovation impact of the vertical integration of knowledge intensive business services (KIBS) into manufacturing. Referring to the vertically integrated sectors of an economy allows innovative knowledge, which is transferred directly and indirectly from KIBS to manufacturing in an embodied way, to be measured. Its impact on manufacturing innovation is then estimated. By merging OECD data on sectoral R&D and input-output tables with sectoral patent applications from the Pastat dataset, a panel of 18 manufacturing sectors is built up for the four largest European countries France, Germany, Italy and the UK spanning from the mid-90s to the mid-00s. The more innovative sectors are actually those making more intensive and extensive use of R&D embodied into KIBS production flows. In policy terms, strengthening the bridge between KIBS and manufacturing appears to be as crucial as supporting KIBS activities and service innovations.Length: 29 pages

Keywords: KIBS; vertically integrated sectors; embodied R&D flows (search for similar items in EconPapers)
JEL-codes: L60 L84 O32 O33 P00 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ipt:wpaper:201304

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