WP3: Firm strategies in the knowledge-based economy

Objectives:
• To investigate external sources of knowledge creation.
• To analyse innovation in the service sector.

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WP leader: Irene Bertschek (This email address is being protected from spambots. You need JavaScript enabled to view it. )

Full details of the workpackage can be found in the description of work, and outputs can be found below.  For further outputs of the project, please see other workackage descriptions, or browse through our Discussion Papers, Review Papers and Policy Briefs.

This workpackage consists of two tasks:

Task 1: ICT and outsourcing
Task 2: Innovation and productivity in service industries

Task 1: ICT and outsourcing
This task will focus on the use of external knowledge by contracting out business service functions and its role for growth and competitiveness of the European economy. It will analyse the role of ICT use as an important determinant of firms' outsourcing decisions. The research will differentiate between manufacturing and services sectors as "users" of outsourcing and thus analyse and compare linkages between manufacturing and services and linkages within service industries. Outsourcing decisions will be related to other firm strategies. In particular, information about firm structures such as human capital, organisational capital, intensity of ICT use will be considered in order to analyse the impacts of outsourcing on productivity, innovation activity and growth

Task 2: Innovation and productivity in service industries
This task will provide a detailed analysis of productivity and employment effects of innovation activities in different services industries and countries. The research proposes to identify the main drivers of innovation in services by relating the probability of innovation in services to firm characteristics, and drivers identified in the innovation literature such as human capital, R&D expenditure, ICT investment, linkages with suppliers, customers, universities and public support. Furthermore the research will model the effect of obstacles to innovation such as access to finance, market access and lack of knowledge. Spillover effects from innovation in manufacturing on productivity and growth in services will also be investigated.