Keywords: knowledge environment, knowledge intensive business service, national systems of innovation, Japan, India, software industry, regional systems of innovation, sectoral systems of innovation, tacit knowledge, explicit knowledge, technical knowledge
Interactive relationship between KIBS and knowledge environment
Increased research attention has been paid to how the Knowledge Intensive Business Service (KIBS) helps to improve the innovation system. However, until recently few studies have been carried out on how the external environment influences the growth of KIBS. This article develops a concept framework of how knowledge environment established by innovation systems influences KIBS. It also points out that the National Systems of Innovation, Regional Systems of Innovation and Sectoral Systems of Innovation will co-create the knowledge environment of KIBS, which will affect the growth of KIBS. The article also notes that knowledge from multinational corporations is a critically important external resource for KIBS in the catch-up countries. The evidences from Japanese industry and the Indian software industry are used to show illustrations.