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Knowledge-intensive business services (KIBS) can be defined as activities in which knowledge is both the input and the main output. The aim of this paper is twofold. Firstly, it seeks to describe a normal service transaction in terms of the various basic modes of knowledge processing and production used by KIBS firms. Secondly, it seeks to establish the links and boundaries between a normal transaction of this kind and innovation, whether produced within or through the use of KIBS.

Knowledge-intensive Business Services: Processing Knowledge and Producing Innovation