ABSTRACT
This chapter describes the regional innovation system which forms the theoretical basis for the analysis and reviews the characteristics and role of Knowledge Intensive Business Services (KIBS) in the economy. It discusses the regional knowledge production function, data and results. Regional differences in economic performance, innovation inputs and outputs, and labour force qualification levels are significant and lead to disparities in competitiveness. The objective of this study is to assess the relationship between a subsector of KIBS, namely high-tech knowledge intensive services (HKIS) and regional competitiveness. Regional competitiveness is composed of, and bases its evaluation on, the same elements as national competitiveness. Public and private knowledge infrastructures as part of regional innovation systems construct the backbone of the region's competitiveness, and when these are aggregated, national competitiveness also depends on them. Competitiveness sets requirements for the quantity and quality of regional resources, institutions and infrastructure, the level of economic dynamism and the interaction across sectors of the economy.
