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Knowledge-Intensive Business Services and Innovation KIBS are firms that provide knowledge-intensive services for other business firms. Since the mid-1990s, interest in KIBS in particular has grown, as reflected in a growing number of publications dealing with their special characteristics (Schricke et al., 2012). KIBS are service companies that provide knowledge inputs mainly to the business processes of other organisations. Examples of KIBS industries include computer services; research and development (R&D) services; legal, accountancy, and management services; architecture, engineering, and technical services; advertising; and market research (Miles, 2005). KIBS combine knowledge from different sources (Hipp, 1999) and are increasingly considered to be major users, originators, and transfer agents of technological and non-technological innovations. They play a major role in creating, gathering, and diffusing organizational, institutional, and social knowledge in other economic sectors (Iden & Methlie, 2012). The KIBS sector has a role as a knowledge-producing, knowledge-using, and knowledge-transforming industrial sector (Schricke et al., 2012). For this reason, Czarnitzki and Spielkamp (2003) characterize KIBS as bridges for innovation. www.timreview.ca

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For sustainable economy approaches to gain more political support and be more present in forums of public debate, they must be allowed to have their wider economic and social implications subjected to scrutiny. Our focus is on the nexus of intended emission reduction and unintended structural implications on the economy. In order to gain insights into the possible implications, we construct two sustainable economy scenarios for Germany. The scope of these scenarios is based on 30 research projects of the funding measure Sustainable Economy. Our model based analysis shows that the effects of these scenarios on emissions are in the order of magnitude of seven to twelve percent of German annual CO2-emissions. The net effects on employment are moderate, but labor markets face huge challenges in managing the high number of job turnovers.