Are Knowledge-Intensive Services Highly Concentrated?: Evidence from European Regions

Abstract

Knowledge-intensive services (KIS) are important activities for regional growth and considered to be located at the top of urban and regional hierarchies. However, the widespread use of information and communication technologies (ICT) may lead to a higher degree of decentralization. This paper presents a detailed analysis of the geographical distribution of KIS across European regions, highlighting some important patterns. Our results confirm that the location of KIS remains linked to regions with a high international profile but, contrary to what some previous studies have suggested, the relative concentration of KIS is rather low. However, important differences exist depending on the type of KIS, the country analyzed and the comparative statistical level. Recent trends also present uneven results, but show a higher concentration of business services-related KIS. The importance of tacit knowledge may play a role in explaining this result.

Keywords: knowledge-intensive services, geographical concentration, Europe

JEL Classification: R32, L84