The paper aims at estimating the innovation impact of the vertical integration of knowledge intensive business services (KIBS) into manufacturing. By referring to the vertically integrated sectors of an economy, the innovative knowledge, which is transferred directly and indirectly from KIBS to manufacturing in an embodied way, is 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 4 largest European countries – France, Germany, Italy and 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 as crucial as supporting KIBS activities and service innovations as such.

CIRIACI Daria;  PALMA Daniela;  MONTRESOR Sandro; 

2014-01-22

Publications Office of the European Union

JRC86432

978-92-79-34784-9,   

1831-9424,   

EUR 26362,    OP LF-NA-26362-EN-N,   

http://ftp.jrc.es/EURdoc/JRC86432.pdf,    https://publications.jrc.ec.europa.eu/repository/handle/JRC86432,   

10.2791/58386,