ABSTRACT

The service sector can be studied from a macro-economic point of view (Fourastié 1949; Clark 1940; Fuchs 1964; Baumol 1967), or through a micro-economic approach focusing on characteristics of the firm. Much micro-economic work has also been carried out on research and development (R&D) intensity and innovation in The Netherlands (Brouwer and Kleinknecht 1994, 1995, 1996). The importance of business services, however, lies primarily in their relationship to, and impacts on, other sectors of the economy. Knowledge-intensive services (KIS) are generally assumed to employ highly qualified labour, to be located in urban areas, to attract other industries (including manufacturing) and to contribute to innovation in other firms. What is the evidence therefore for the impacts of KIS on other sectors in the Dutch economy? This chapter explores this and related aspects of KIS in The Netherlands, on the basis of various quantitative and qualitative sources.