Drivers for innovation in KIBS: evidence from Russia

Abstract

Knowledge-intensive business services (KIBS) significantly contribute to the economic growth and competitive advantage of emerging markets, including Silk Road countries. KIBS are not only intermediaries that transfer knowledge through the economy but are also innovators themselves. This paper aims to explore how major innovation drivers influence the implementation of innovation in KIBS. Using a sample of 519 KIBS enterprises from Russia, the results show that human capital increases the implementation of technological innovation, while the link between standardisation and technological innovations is non-linear (an inverted U-shaped). In addition, the multiregional branch network promotes the implementation of all types of innovation, while advertising investments enhance the implementation of technological and marketing ones. These results help to provide some practical suggestions for both innovation managers and policy-makers.

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