Characterising Innovation in Knowledge-Intensive Business Services

Though KIBS constitute only a small proportion of all services, researchers frequently accord them a significance beyond that indicated by their share in employment or value added (Tether & Hipp, 2002; Gallouj, 2002). For example, KIBS are held to play ‘an increasingly dynamic and pivotal role in ‘new’ knowledge-based economies’ (Howells, 2000, p. 4), as sources of important new technologies, high-quality, high-wage employment and wealth creation (Tether, 2004). Unfortunately, while much of the rhetoric seems intuitively reasonable, one inevitably encounters definitional difficulties in delimiting the specifics of innovation in KIBS, with a variety of, more or less operational, working definitions employed by the academic literature (Wong & He, 2005).