ABSTRACT
An industry’s capability to produce high rates of productivity increase depends on its ability to generate innovative production processes and products, and on its ability to learn new processes and methods produced outside the industry. This chapter utilises the Input/Output methodology to provide an empirical measurement of the effects of Knowledge-intensive business services (KIBS) on productivity growth in the Greek economy. It presents quantitative and qualitative analysis based on the calculations of business services inputs. The knowledge transferred through ‘research spill-overs’ is, arguably, primarily ‘generic’ knowledge – consisting of general scientific principles or processes of production which are the outcome of a long accumulation process. KIBS can play an important role in providing firms with access to technological and scientific information; hence, they increase the connectivity of the firms. The Greek market has experienced a rapid increase in the supply of and demand for business services.
