Yancy Vaillant (p), Krisztina Horváth , Esteban Lafuente

Esteban Lafuente

Rather than local industrial specialization, the local hybrid value chains composed of a diverse set of complementary product and service providers are increasingly perceived to be more adequate for developing local product-service innovation systems (Lafuente et al., 2018). In such an innovation ecosystem, the role of indigenous knowledge-intensive service provision is key where knowledge-intensive business service firms (KIBS) have been found to be crucial for the renaissance of local industry (Horváth & Rabetino, 2018). Consequently, value-adding industrial innovation is likely to vary according to the functions of the value chain that are readily accessible locally.

Service provision is crucially important for the innovation capabilities of local industry in the most knowledge-intensive stages of the value chain. KIBS have been categorized into two main groups, technology-based KIBS (T-KIBS) and professional-based KIBS (P-KIBS) (Doloreux and Shearmur, 2010). T-KIBS tend to used complex technologies, bare higher innovation investments and depend to a great extent of the creation, absorption and distribution of knowledge. P-KIBS, on the other hand, are based on professional services and support activities that depend more on expertise. The exclusivity of such expertise is often the source of a P-KIBS’s competitiveness, and therefore these firms tend to be less prone to transfer their knowledge to other local firms.

The research objective of the study presented in this paper is therefore to identify whether the positive effect of KIBS on the contribution of manufacturing firms to the local economy is stronger among T-KIBS, as compared to P-KIBS.

To reach this objective, Spatial Durbin Models based on spatial diagnostic tests are applied to data from two separate sources. Data coming from the Regional Entrepreneurship and Development Index (REDI) for the years 2012-2014 is complemented by secondary Eurostat data on the regional economic and industrial performance across Europe.

The results of the study suggest that territorial servitization processes are taking place in many EU regions (Lafuente et al., 2017). The territorial presence of an active hybrid value chain composed of a mixture of industrial and KIBS firms is associated with greater average manufacturing GVA. Therefore, the local presence of KIBS firms pays-off for manufacturers and the territorial product-service innovation system. However, when separating t-KIBS and p-KIBS, regional benefits are only found for t-KIBS businesses.

Eduardo Sisti , Arantza Zubiaurre (p)

Esteban Lafuente

Adopting the approach of territorial servitization heterogeneity and, aiming to address the explanation of mechanisms that facilitate network interactions between manufactures and KIBS, the paper asks to what extent the entry rates of KIBS sector can be explained by regional techno-economic structure evolution and whether/how the innovation intensity of the RIS places KIBS in the center of knowledge-based learning. More specifically we address the following research questions: i) Is it equally significant the positive relationship between urbanization and KIBS entry for all different KIBS categories?. ii) To what extent a higher manufacturing base is positively related to TKIBS creation?. iii) Does a bigger RIS affect the entry rates of TKIBS?.
The data used in this study comes from two sources. First, KIBS entry rates have been obtained from SABI, a data base with information on companies in Spain. Second, SABI has been also the source to classify KIBS firms into KIBS categories according NACE code and following Böhn & Thomi (2003) distinguishing among: i)TKIBS (resesech and development and other technical services); ii) CKIBS (computer and related services) and iii) PKIBS (legal services, consultancy and market services) . Thrid, data on population density and RIS ecosystem have been collected from INE, the Sapnish Statistical Office. In this study the unit of analysis is the Spanish regional disaggregation at level NUTS2. The period of analysis extends between 2000 and 2016. From a methodological perspective we use multidimensional panel data analysis.
Even when more in depth analysis is needed, it seems that innovative manufactures certainly stimulate TKIBS, which means that mean territorial servitization statement is corroborated in some degree. The preliminary results corroborate that population density and agglomeration economies matter in KIBS creation rate (Muller &Doloreux, 2007; Shearmur& Doloreux, 2008; Sthalecker, 2014) but it is worth underlining that an exception has been found in TKIBS, the empirical evidence underlines that new TKBIS are located in manufacturing regions and they are more influenced by the environment for innovation than others.
This research aims at contributing towards the scarce empirical literature in the field and contributes a distinct view on supply side, differentiating among TKIBS, CKIBS and PKIBS, and also, a distinct view on demand side relating to the regional innovative system strength. A deeper understanding on how territories materialize servitization intensity can help to shed light on the design of appropriately target industrial and innovation policy at subnational level.

Jean Pierre Seclen Luna (p)

Esteban Lafuente

Previous analysis of the relationship between KIBS and innovation outcomes have shown how KIBS contribute to economic development in industrialized countries, where the competitiveness of manufacturing industries depends more and more on the specific knowledge provided by highly specialized suppliers. In this way, KIBS has been gradually perceived as a strategic sector in the context of the knowledge-based economy. According to territorial servitization postulates KIBS are also fundamental for the development of the manufacturing fabric. In this vein, the purpose of this research is analyzing the relationship between innovativeness and location decisions in manufacturing decisions, in order to understand whether the presence of KIBS can be seen as a magnet for manufacturing development.
Drawing on the World Bank Enterprise Survey 2017 for Latin-American countries, authors analyze 3,029 manufacturing firms. Findings indicate that manufacturing firms’ location decision based on KIBS proximity is a critical determinant of innovativeness. Preliminary results indicate that manufacturing firms’ location decision based on KIBS proximity is a critical determinant of innovativeness. This relationship is considerably stronger in Central American countries, where according to our data there is KIBS scarcity. Whilst this result requires further discussion, we postulate that the decision of KIBS co-location become more important when the technological and service knowledge is more scarce and hence valuable.

Marco Opazo (p), Lorea Narvaiza, Tontxu Campos

Esteban Lafuente

Servitization strategy is increasingly recognized as a key source of value with important competitive and economic potential across the globe. Over the years, it has been proven to contribute to territorial performance through the provision of services to manufacturing businesses. Such contribution, however, has been to a large extent consequential to the configuration of local industrial structures, and most importantly, by interconnectedness between manufacturing firms and knowledge intensive business services sector (KIBS). Hence, the process of territorial servitization is highly conditioned to the association between manufacturing businesses and KIBS firms. To date, territorial servitization literature mostly describes the implications of KIBS for service deployment and service innovation in manufacturing, considering knowledge and technological capabilities as a key variable for its success. Nevertheless, the literature is silent on how geographical distance between KIBS and manufacturing companies may infer in servitization success. Therefore, this research attempts to disclose the importance of geographical distance between KIBS and manufacturers. In doing so, we analyse two manufacturing companies located in the Basque country collaborating with KIBS “within” and “outside” the Basque region. Consequently, through a qualitative study based on in-deph interviews preliminary results suggests that partner proximity plays a key role on the KIBS-Manufacturer relationship, and require to be considered as an important aspect for successful territorial servitization.

Marco Bellandi (p), Erica Santini

Esteban Lafuente

Manufacturing systems are entering trajectories of territorial servitization and rerouting towards product-service systems. A strong cooperation between traditional manufacturers and service providers may indeed open to renewed models of value creation and redistribution. However, in these systems, the traditional key actors are in some cases replaced by new economic actors, and related conflicts arise. Furthermore, the dis-alignment of interests between manufacturing and service firms increases the risks of high transaction costs. Therefore, an appropriate strategic leadership would play an important role and open to territorial servitization trajectories. This paper aims at assessing how different types of place leadership could help but also hinder an effective rerouting. An open place leadership would support strong territorial servitization opportunities and coordinated solutions among conflictual views and interests. If instead place leadership is weak or based on a closed club of private interests, weak or unstable trajectories amid lock-ins and impending decline become more probable.