Local Product-Service Innovation Systems: T-KIBS Contribute Most to Local Manufacturing Performance

28 Pages Posted: 8 Apr 2019

See all articles by Yancy Vaillant

Yancy Vaillant

Department of Strategy, Entrepreneurship & Innovation

Esteban Lafuente

Universitat Politecnica de Catalunya (UPC Barcelona Tech)

Krisztina Horváth

University of Pécs - Faculty of Business and Economics

Date Written: March 20, 2019

Abstract

Knowledge-intensive business service firms (KIBS) have been found to be instrumental for the renaissance of local manufacturing sectors. The value-adding role of KIBS to local manufacturing performance is likely to vary according to the functions they fill within the local hybrid value chain. The research objective of the study presented in this paper is to identify whether the positive effect of KIBS on the contribution of manufacturing businesses to the local economy is stronger in regions with a greater technology-based KIBS sector (T-KIBS), as compared to professional-based KIBS (P-KIBS). To reach this objective, we employ regression models and cluster analysis on a database built from two separate sources (Regional Entrepreneurship and Development Index and Eurostat) that includes information for the years 2012-2014 for 121 European Union (EU) regions from 24 countries. The main findings indicate that the territorial presence of an active hybrid value chain composed of a mixture of manufacturing and T-KIBS businesses is associated with greater average manufacturing productivity, in terms of gross-value added (GVA) per worker. Therefore, the local presence of T-KIBS firms pays-off for manufacturers and the territorial product-service innovation system.

Keywords: KIBS sector, manufacturing industry, territorial servitization, local hybrid value chain

JEL Classification: L26, O14, R58

Suggested Citation

Vaillant, Yancy and Lafuente, Esteban and Horváth, Krisztina, Local Product-Service Innovation Systems: T-KIBS Contribute Most to Local Manufacturing Performance (March 20, 2019). Available at SSRN: https://ssrn.com/abstract=3356879 or http://dx.doi.org/10.2139/ssrn.3356879

Yancy Vaillant

Department of Strategy, Entrepreneurship & Innovation ( email )

20, bd Lascrosses
BP 7010
Toulouse, 31068
France

Esteban Lafuente (Contact Author)

Universitat Politecnica de Catalunya (UPC Barcelona Tech) ( email )

Barcelona, Barcelona
Spain

Krisztina Horváth

University of Pécs - Faculty of Business and Economics ( email )

Rákóczi út 80
Pécs, 7622
Hungary

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