MIIR Centre for Service Research Knowledge Intensive Service

MIIR Centre for Service Research Knowledge Intensive Service firms, sectors…. systems Ian Miles Professor of Technological Innovation & Social Change Centre for Service Research & MIo. IR Manchester Business School EWOSS - Eindhoven 09/11/09

MIIR Towards understanding KISS Centre for Service Research EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Definitions Service: “doing things” rather than “making things” – creating (largely) intangible products. Things that are of value (an economic or paraeconomic relationship [informal economies] is implied) Service Firm: firms whose main business is directly producing services Service Sector: NACE sections G to O: G. Hotels and Restaurants (HORECA) H. Transport, Storage I. Financial Intermediation (FI. . . J. Real estate, Renting (…RE), Business Activities K. Wholesale & Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal & Household Goods L. Public Administration and Defence; Compulsory Social Security M. Education N. Health and Social Work O. Other Community, Social and Personal Service Activities A service system is “a configuration of people, technologies, and other resources that interact with other service systems to create mutual value. ” (SSMENet). Often firms and intra-firm activities involved. EWOSS - Eindhoven 09/11/09

Firms and Sectors MIIR Centre for Service Research Society (concept of eco-services, informal economy and self-services) Formal Economy (in-house services, plus services delivered to others - sometimes sold by non-service firms) Services Sectors (main activity concept of eco-services) Knowledge-Intensive Services Business-Related Services Business Services Knowledge-Intensive Business Services EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Firms and Sectors Society Formal Economy Services Sectors Knowledge-Intensive Services Business-Related Services Business Services Knowledge-Intensive Business Services EWOSS - Eindhoven 09/11/09

Some KISS? MIIR Centre for Service Research Society Formal Economy Services Sectors Knowledge-Intensive Services Business-Related Services Business Services Knowledge-Intensive Business Services EWOSS - Eindhoven 09/11/09 May include as members of system: consumers, manufacturers, . KIS/KIBS, other services. What level of granularity? What role of coproduction?

MIIR Centre for Service Research What do we mean by Knowledge-Intensive? Variations across sectors, firms, occupations, (possibly activities and processes): Workforce educational credentials implying “embodied” knowledge of different depths Work activities reported experience implying on-the-job knowledge of different depths Organisation knowledge management systems, knowledgedirected business processes Use of Information Technology EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Where is the knowledge? To what extent: • Are agents possessed of considerable knowledge? • Are agents performing roles that require little knowledge to follow evolving knowledgebased instructions? • Are agents performing routine and monotonous roles? Seth Fisher cartoon EWOSS - Eindhoven 09/11/09

Intensive, Extensive… MIIR Centre for Service Research “Knowledge-based economy” discussions – growing role of (some forms of)* knowledge production and use: High reliance on Knowledge-based codified or embodied tech. knowledge A, B, C, D Knowledge-driven A, B (? ) Workforce knowledge: Highly concentrated A B C D Workforce knowledge: Relatively distributed Knowledge-intensive B, D (? ) Are these the right parameters? E. g. other classifications based on standardisation vs specialisation, etc. * Mainly S&T knowledge, codified knowledge EWOSS - Eindhoven 09/11/09 High reliance on codified or embodied soc. knowledge E Low reliance on codified or embodied knowledge

MIIR Centre for Service Research Sectoral Analysis A quick look at basic data on technology use, Then exploring workforce qualificational and other data EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Sectoral data – Input-output tables: what do sectors purchase? UK data 2004 Processing large volumes of Information EWOSS - Eindhoven 09/11/09 Requiring physical presence of People Making or Working with Things

MIIR Sectoral Workforce skills (educational levels) Centre for Service Research HIGH SKILL Data on EU workforce, 2000 Knowledge-intensive services Education Low-skill services Medium-skill services Business Sers. _ Health & Soc. Sers. Other Sers. LOW SKILL Manufacturing Agriculture EWOSS - Eindhoven 09/11/09 FIRE Trade MEDIUM Transport HORECA Pub. Admin. SKILL

“technologybased KIBS” MIIR Centre for Service Research Graduates in Workforce: Focus on Knowledge. Intensive (private) services KIBS UK, CIS 3 EWOSS - Eindhoven 09/11/09 data "professional KIBS"

MIIR Centre for Service Research Work Experience across Sectors European Working Conditions Survey EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Knowledge Development and Use EWOSS - Eindhoven 09/11/09

Knowledge-Intensive Business Service Sectors MIIR KIBS: within Business Service sectors: Most of NACE 72 -74 This misses Education, Social services, several “Creative” industries, Finance, Telecomms… Centre for Service Research NACE Classn 71. 1, 71. 21 -23, 72. 1 - 6 Business Services Leasing & renting Computer 73. 1, 73. 2 R&D 74. 2, 74. 3 Technical 74. 11 -. 12, 74. 14 Professional 74. 13, 74. 4 Marketing 74. 5 Labour recruitment NOT: 74. 6, 74. 7 Operational 74. 81 -84 Other EWOSS - Eindhoven 09/11/09 Most important activities • Renting of transport, construction equipment, office machinery • Hardware consultancy • Software consultancy Data processing • Database activities • Research and experimental development on natural sciences and engineering • …on social sciences and humanities • Architectural activities • Engineering activities Technical testing and analysis • Legal activities • Accounting & tax consultancy Management consulting • Market research • Advertising • Labour recruitment and provision of personnel • Security activities • Industrial cleaning • Secretarial and translation activities Packing activities • Fairs & exhibitions

MIIR Centre for Service Research Relative Scale of various BS in the UK, 2000 Rapid growth, across industrial world 0 10 20 EWOSS - Eindhoven 09/11/09 30 40 50 VALUE ADDED bn euros 60 70

MIIR Centre for Service Research Sectors Occupations ISCO Occupations matching KIBS activities: 1: legislators, senior officials and managers; 2: professionals (in 1 Physical, mathematical and engineering science; Life science and health; Teaching; and Others); 3: technicians and associate professionals (as in group 2), [4: clericals] EWOSS - Eindhoven 09/11/09

ISCO Occupations and educational MIIR attainments, - shares of EU 25 workforce, 2006 Centre for Service Research EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Three KISA Occupations CEDEFOP data, ISCO categories, EU-25 2006 EWOSS - Eindhoven 09/11/09

MIIRLocation Centre for Service Research of highly qualified workers EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research More detailed KISA occupations – in KIBS and elsewhere EWOSS - Eindhoven 09/11/09 Source: Marja Toivonen

Other training MIIR Fourteen clusters of jobs Centre for Service Research From data in Employment in Europe 2008; Training in formal education Normalised scores; averages for each cluster of occupations EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Beyond basic qualifications Scope for more sophisticated understanding/, measurement of knowledge and skills E. g. O*Net classification and description of occupations, and characterisation in terms of levels of capability in various competence areas. (Davide Consoli currently studying) Again, Scope for looking at knowledge as expressed in activities… EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Features of Work across Different Occupational Groups, Europe 2005 KIS work EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research Features of Work across 4 Occupational Groups Europe 2005 – deviations from overall average for employees Own ideas New Things Complex Monotonous Unforeseen problems KIS work Use Internet Use computers Nonemployees EWOSS - Eindhoven 09/11/09

Other training MIIR Centre for Service Research First job title in each occupational cluster Health associate professionals Architects, engineers & related professionals From data in Employment in Europe 2008; Directors and chief executives Training in formal education Normalised Crop & animal producers scores; averages for each cluster Animal producers of occupations & related workers Agricultural and other mobile plant operators EWOSS - Eindhoven 09/11/09 Artistic, entertainment & sports associate professionals Business services agents & trade brokers Administrative associate professionals Shoe cleaners. . !! Cashiers, tellers & related clerks Manufacturing Fashion and Building labourers. other models !! finishers and related trades Bold > 10%; small font <. 1% workers

MIIR Key Centre for Service Research Clusters 2, 3 and 4 (16. 8%) Health associate professionals (except nursing) Health professionals (except nursing) Legal professionals Life science professionals 2 5. 7% of E Nursing and midwifery associate professionals Nursing and midwifery professionals Physicists, chemists and related professionals Preprimary education teaching associate professionals Architects, engineers and related professionals Business professionals 3 College, university and higher education teaching professionals 4. 6% of E Computing professionals Social science and related professionals Special education teaching associate professionals Writers and creative or performing artists Primary and preprimary education teaching professionals Artistic, entertainment and sports associate professionals Religious professionals Client information clerks Secondary education teaching professionals Other teaching professionals Special education teaching professionals EWOSS - Eindhoven 09/11/09 4 E 5. 5% of Personal care and related workers Social work associate professionals

MIIR Centre for Service Research Key Clusters 5, 7 – and 8 Administrative associate professionals Archivists, librarians and related information professionals Library, mail and related clerks Life science technicians and related associate professional 17. 6% of E Material recording and transport clerks Numerical clerks Optical and electronic equipment operators Other office clerks Physical and engineering science technicians Precision workers in metal and related materials Protective services workers Secretaries and keyboard operating clerks Ship and aircraft controllers and technicians 5 Business services agents and trade brokers Computer associate professionals Finance and sales associate professionals Other teaching associate 5. 3% of E professionals Religious associate professionals Travel attendants and related workers 7 Cashiers, tellers and related clerks Housekeeping and restaurant services workers 16. 5% of E Other personal services workers Shop, stall and market salespersons and demonstrators EWOSS - Eindhoven 09/11/09 Cashiers, tellers and related clerks 8

MIIR Centre for Service Research So K-I firms, sectors, occupations can be assessed in various ways But how can this be used to identify and classify, to understand explore different KISS? At micro-level: KISS involved with a KIBS or KIBS-like service. Interesting question: what sort of knowledge requirements for the client? At macro-level – scope for definitions related to presence of particular shares of KISA workers relative to: overall employment? final cost of service? technology investment? Research agendas at different levels for different service types EWOSS - Eindhoven 09/11/09

MIIR Centre for Service Research End of Presentation EWOSS - Eindhoven 09/11/09