Proceedings of XXIV Annual RESER Conference 2014 "Services and New Societal Challenges: Innovation for Sustainable Growth and Welfare"
The conference main theme, "Services and New Societal Challenges: Innovation for Sustainable Growth and Welfare", highlights that services are embedded in the development of the present society. Service sectors and activities form an increasing share of today’s economies, and the success of new technologies creates and needs services. Solutions to the biggest societal challenges require systemic innovations, but also these innovations often manifest themselves as new or improved services.
The paper focuses on knowledge-intensive business services (KIBS) to study the determinants of the successful value creation. We argue that value creation is not always efficient: the value of services could be lost due to an inefficient absorptive capacity of service consumers, who must be value adders together with providers due to the nature of services. The origins of inefficiency are elucidated by a thorough study of the interaction between KIBS producers and consumers (co-production). The methodology includes the study of observable patterns in Russian KIBS sector performancein2007-13 obtained from specialised surveys of Russian executives who were asked to answer questions both on their own company and on market developments. We provide both cross-section and generalised analysis of survey data.