The Impact of the Coronacrisis on KIBS Sector

Abstract

Knowledge-Intensive Business Services (KIBS) are problem-solvers for other organizations. The coronacrisis affects KIBS directly, but also means that their clients are confronting new problems. How are KIBS addressing these two sets of challenges? This paper draws on material available in the trade and industry press, on official reports and statistics, and the early academic studies addressing these themes. We find that KIBS have been active (alongside other organizations) in providing a substantial range of services aimed at helping their clients (and others) deal with various contingencies thrown up by the crisis. Not least among these is the need to conform to shifting regulatory frameworks, and requirements for longer-term resilience. KIBS themselves have had to adapt their working practices considerably, to reduce face-to-face interaction with clients and within teams collaborating on projects. Adaptation is easier for those whose tasks that are relatively standardized and codified, and it remains to be seen how far a shift to such activities - and away from the traditional office-based venues of activity - is retained as firms recover from the crisis. KIBS are liable to play an important role in this recovery from the crisis, and policymakers can mobilize their services. Some KIBS are liable to be critical for rendering economies more resilient in the face of future pandemics and we argue that these firms are also important for confronting the mounting climate crisis.

Innovation in Micro Firms Builders of Machine Tool? Effects of T-KIBS on technological and non-technological innovations

“…Overall, the findings are consistent with previous work that emphasizes the heterogeneity of KIBS sectors as well as the relevance of taking into consideration these differences to understand how KIBS contribute to innovation in manufacturing firms. Therefore, our study adds arguments to understand the differences in KIBS sector effects (Doloreux & Shearmur, 2012;Miles et al, 2021;Rodríguez et al, 2017), highlighting the importance of T-KIBS (Vaillant et al, 2021).…”

“…In general terms, KIBS are critical components of modern economies since they are problem-solvers for other organizations (Miles, Belousova, Chichkanov, & Krayushkina, 2021). That is, they develop tailored solutions for customers that require tailored solutions to complex and specific problems (Santos & Spring, 2015).…”

“…Thus, their specialization in the knowledge field constitutes the specific mode of production adopted by them (Hertog, 2000) and they can be innovative by themselves (Chichkanov, Miles, & Belousova, 2019;Teixeira & Santos, 2016). Also, they have grown rapidly in modern economies and have become integrated into many supply chains and business strategies (Miles et al, 2021).…”

“…The differences across the KIBS sub-sectors have not been broadly explored; thus, KIBS cannot be analysed as an undifferentiated group of establishments (Rodríguez, Doloreux, & Shearmur, 2017). In this sense, one of the most useful classifications of KIBS is the one proposed by Miles (2012) and which is currently used to understand in detail each industrial sector of KIBS (Miles et al, 2021): 1) traditional professional services (P-KIBS), which are composed of administration and institutional knowledge services, such as legal services (NACE M69.1), accounting services (NACE M69.2), business management (NACE M70.2), etc. ; 2) scientific and technological knowledge services (T-KIBS), which are made up of computer-related services (NACE J63), R&D services (NACE M72), engineering services (NACE M71.12), technical testing services (NACE M71.2), among others; and 3) more creative and cultural knowledge services (C-KIBS), which include design services (NACE M74.1), market research services (NACE M71.11), and advertising services (NACE M73.1), etc.…”

“…On the other hand, in accordance with the literature on KIBS reviewed (Doloreux & Shearmur, 2012;Miles, 2012;Miles et al, 2021), we considered as independent variables the different kinds of KIBS that firms hire to achieve technological innovation outcomes (products and processes), and non-technological innovation outcomes (organizational and marketing). Thus, we grouped them in three categories: 1) traditional professional services (P-KIBS), which we called 'management services'; 2) services with scientific and technological knowledge (T-KIBS), which are made up of computer-related services or 'ICT services', 'R&D services', and 'engineering services'; and 3) services with more creative and cultural knowledge (C-KIBS), which include 'marketing services'.…”