The ‘KIBS engine’ of Regional Innovation Systems: empirical evidence from European regions

Knowledge-intensive business services (KIBS) are key players in innovation systems, particularly in advanced regions where manufacturing competitiveness largely depends on knowledge contents provided by highly specialized suppliers. This paper investigates the relationship between KIBS and the structure and performance of regional innovation systems in Europe. It maps the co-evolution between KIBS and manufacturing in European regions, identifying emergent typologies of regional innovation systems. Results show that KIBS are a defining element of innovation-oriented regions, whereas their scarcity and slow growth distinctively characterize poor performing innovation systems. However, the analysis also identifies a set of core manufacturing regions in Europe, which are evolving along a different trajectory into knowledge-oriented service-manufacturing complexes.