Knowledge Intensive Service firms, sectors….systems

1. Knowledge Intensive Servicefirms, sectors….systems Ian Miles Professor of Technological Innovation & Social Change Centre for Service Research & MIoIR Manchester Business School

2. Towards understanding KISS

3. Definitions • Service: “doing things” rather than “making things” – creating (largely) intangible products. Things that are of value (an economic or para-economic relationship [informal economies] is implied) • Service Firm: firms whose main business is directly producing services • Service Sector: NACE sections G to O: • Hotels and Restaurants (HORECA) • Transport, Storage • Financial Intermediation (FI... • Real estate, Renting (…RE), Business Activities • Wholesale & Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal & Household Goods • Public Administration and Defence; Compulsory Social Security • Education • Health and Social Work • Other Community, Social and Personal Service Activities • A service system is “a configuration of people, technologies, and other resources that interact with other service systems to create mutual value.” (SSMENet). Often firms and intra-firm activities involved.

4. Firms and Sectors • Society (concept of eco-services, informal economy and self-services) • Formal Economy (in-house services, plus services delivered to others - sometimes sold - by non-service firms) • Services Sectors (main activity concept of eco-services) • Knowledge-Intensive Services • Business-Related Services • Business Services • Knowledge-Intensive Business Services

5. Firms and Sectors Society Formal Economy Services Sectors Knowledge-Intensive Services Business-Related Services Business Services Knowledge-Intensive Business Services

6. Some KISS? Society Formal Economy Services Sectors Knowledge-Intensive Services Business-Related Services Business Services Knowledge-Intensive Business Services May include as members of system: consumers, manufacturers, .KIS/KIBS, other services. What level of granularity? What role of coproduction?

7. What do we mean by Knowledge-Intensive? Variations across sectors, firms, occupations, (possibly activities and processes): • Workforce • educational credentials implying “embodied” knowledge of different depths • Work activities • reported experience implying on-the-job knowledge of different depths • Organisation • knowledge management systems, knowledge-directed business processes • Use of Information Technology

8. Where is the knowledge? • To what extent: • Are agents possessed of considerable knowledge? • Are agents performing roles that require little knowledge to follow evolving knowledge-based instructions? • Are agents performing routine and monotonous roles? Seth Fisher cartoon

9. Intensive, Extensive… • “Knowledge-based economy” discussions – growing role of (some forms of)* knowledge production and use: • Knowledge-based • A,B,C,D • Knowledge-driven • A, B (?) • Knowledge-intensive • B, D (?) • Are these the right parameters? • E.g. other classifications based on standardisation vs specialisation, etc. * Mainly S&T knowledge, codified knowledge High reliance on codified or embodied tech. knowledge A B C D E Workforce knowledge: Highly concentrated Workforce knowledge: Relatively distributed High reliance on codified or embodied soc. knowledge Low reliance on codified or embodied knowledge

10. Sectoral Analysis • A quick look at basic data on technology use, • Then exploring workforce qualificational and other data

11. Sectoral data – Input-output tables: what do sectors purchase? UK data 2004 Processing large volumes of Information Making or Working with Things Requiring physical presence of People

12. Sectoral Workforce skills (educational levels) HIGH SKILL Data on EU workforce, 2000 Knowledge-intensive services Education Low-skill services Medium-skill services Business Sers._ Health & Soc. Sers. FIRE Other Sers. Manufacturing Trade Transport MEDIUM SKILL LOW SKILL Agriculture HORECA Pub. Admin.

13. “technology-based KIBS” "professional KIBS" Graduates in Workforce:Focus on Knowledge-Intensive (private) services -KIBS UK, CIS3 data

14. Work Experience across SectorsEuropean Working Conditions Survey

15. Knowledge Development and Use

16. Knowledge-Intensive Business Service Sectors • KIBS: within Business Service sectors: Most of NACE 72-74 • This misses Education, Social services, several “Creative” industries, Finance, Telecomms… NOT:

17. 0 10 20 30 40 50 60 70 VALUE ADDED bn euros Relative Scale of variousBS in the UK, 2000 Rapid growth, across industrial world

18. Sectors  Occupations • ISCO Occupations matching KIBS activities: • 1: legislators, senior officials and managers; • 2: professionals (in 1 Physical, mathematical and engineering science; Life science and health; Teaching; and Others); • 3: technicians and associate professionals (as in group 2), • [4: clericals]

19. ISCO Occupations and educational attainments, - shares of EU25 workforce, 2006

20. Three KISA Occupations CEDEFOP data, ISCO categories, EU-25 2006

21. Location of highly qualified workers

22. More detailed KISA occupations – in KIBS and elsewhere Source: Marja Toivonen

23. Other training Fourteen clusters of jobs From data in Employment in Europe 2008; Normalised scores; averages for each cluster of occupations Training in formal education

24. Beyond basic qualifications • Scope for more sophisticated understanding/,measurement of knowledge and skills • E.g. O*Net classification and description of occupations, and characterisation in terms of levels of capability in various competence areas. (Davide Consoli currently studying) • Again, Scope for looking at knowledge as expressed in activities…

25. Features of Work acrossDifferent Occupational Groups, Europe 2005 KIS work

26. Own ideas New Things Complex Monotonous Unforeseen problems Use Internet Use computers Nonemployees Features of Work across4 Occupational Groups Europe 2005 – deviations from overall average for employees KIS work

27. Other training First job title in each occupational cluster Health associate professionals Architects, engineers & related professionals From data in Employment in Europe 2008; Normalised scores; averages for each cluster of occupations Artistic, entertainment & sports associate professionals Directors and chief executives Business services agents & trade brokers Administrative associate professionals Training in formal education Crop & animal producers Shoe cleaners.. !! Animal producers & related workers Cashiers, tellers & related clerks Manufacturing labourers. Building finishers and related trades workers Fashion and other models !! Agricultural and other mobile plant operators Bold > 10%; small font <.1%

28. Key Clusters 2, 3 and 4 (16.8%) 3 2 5.7% of E 4.6% of E 4 5.5% of E

29. Key Clusters 5,7 – and 8 5 7 17.6% of E 5.3% of E 8 16.5% of E

30. So K-I firms, sectors, occupations can be assessed in various ways • But how can this be used to identify and classify, to understand and explore different KISS? • At micro-level: KISS involved with a KIBS or KIBS-like service. Interesting question: what sort of knowledge requirements for the client? • At macro-level – scope for definitions related to presence of particular shares of KISA workers relative to: overall employment? final cost of service? technology investment? • Research agendas at different levels for different service types

31. End of Presentation