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The substantial growth in literature on knowledge-intensive business services (KIBSs) has thrown light on their contributions to innovation and innovation systems. This paper is the first of a set that examines major debates and conclusions to have emerged from this growing body of evidence.

This is a review essay, which also presents relevant statistics. It addresses definitional issues and controversies, and sets out basic trends and characteristics of the KIBS industries. The focus is mainly on KIBS firms, though the production of similar services in other types of organisation is also considered.

Many of the conclusions of an earlier (2005) review in this journal remain valid, though difficulties in capturing these activities in official statistics mean that there are many issues that demand closer inspection. Understanding the role and future prospects of KIBS will also require looking beyond the literature that focuses just on KIBS industries.

This study involves literature review and statistical analysis. Future work would benefit from involvement of practitioners and users of KIBS.

More explicit consideration of KIBS in statistical frameworks is still required, and novel approaches to data conceptualisation and production should be explored.

The growing literature on KIBS, and its implications for understanding the roles and future development of the firms and their relationships to innovation systems, requires systematic analysis. Available statistics have been brought together, and this paper also reflects critically on the trajectories of research on these topics.

The literature on knowledge-intensive business services (KIBS) shows them to be major innovators; this is confirmed with recent data, which the authors use to examine the various types of innovation that KIBS undertake. The implications for employment and work in highly innovative industries are important topics for analysis, not least because we are in a period where dramatic claims are being made as to the implications of new technologies for professional occupations. Thus, this paper aims to address major debates and conclusions concerning innovation patterns in KIBS and the evolving structures of professional and other work in these industries.

This essay combines literature review with presentation and discussion of statistics that throw light on the patterns of innovation that characterise KIBS. The authors also consider data that concern trends in the organisation of work in these industries; while the focus is mainly on KIBS firms, they also pay some attention to KIBS-like work in other sectors. Even though KIBS are distinctive industries in modern economies, these analyses can be related to more general studies of, and forecasts about, changes in work organisation.

The authors show that innovation patterns and employment structures vary substantially across different types of KIBS, with the distinction between technological, professional and creative KIBS proving to be useful for capturing these differences. The authors are also able to demonstrate important long- and medium-term trends in the structure and activities of the KIBS industries. In particular, data clearly demonstrate the increasing share of professional as against associate and clerical workers in most KIBS. Evidence also suggests that polarisation trends across the economy are mirrored, and in some cases amplified, in KIBS. The future prospects for employment in KIBS, and for professional work in particular, are seen to involve multiple factors, which together may bring about substantial change.

The study involves literature review and industry-level statistical analysis. Future work would benefit from firm-level analysis and validation and explication of results via consultation with practitioners and users of KIBS. Some puzzling variations across countries and sectors will need to be explored with national and sectoral experts.

Research into KIBS activities, and their future, should make more use of the extensive statistics on employment and other structural features of the industries that have become available in recent years. KIBS firms and practitioners will need to take account of the forces for change that are liable to restructure their activities.

The literature on KIBS has been concentrated on a rather narrow range of issues, while analysis of the current contributions and future development of the industries requires attention to a wider range of topics. This paper suggests how these topics may be investigated and their implications explored and presents results of enquiries along these lines.

This paper aims to study the relationship between the knowledge exchanged during client interactions and innovation in knowledge-intensive business services (KIBS) enterprises. It adapts the concept of absorptive capacity, i.e. the ability of the firm to successfully deal with external knowledge, to the case of client knowledge being absorbed with the support of information and communication technologies and explores whether its three main dimensions (acquisition, assimilation and application of client knowledge) are significant enablers of KIBS’ innovation propensity.

An empirical analysis is based on a dataset of 417 Russian KIBS companies collected in 2019 following the recommendations suggested in the new edition of Oslo Manual. To examine the relationship between the three-client knowledge absorptive capacity dimensions and implementation of different types of innovation by KIBS, the study applies linear ordinary least squares and logistic regression methods.

The results show that acquisition of client knowledge through the wide number of digital channels, assimilation of such knowledge boosted by its codification through a digital customer relationship management (CRM) system and application of client knowledge across different functional areas are positively associated with both product and business process innovations in KIBS.

The paper proposes that KIBS should develop and sustain the strong internal capacity to absorb knowledge through routine day-to-day client interactions as a part of their knowledge management systems. The results also indicate that application of digital communication tools and CRM systems are beneficial for KIBS and increases their propensity to innovate.