Utilization of Knowledge Intensive Services for the Innovation of Manufacturers in Korea

This study aims to explore and understand the role of knowledge intensive service activities in the industrial innovation of Korea. It analyzes public and private service inputs to the innovation of manufacturers. The contribution of KISs to the innovation of both service suppliers and manufacturers was analyzed by using survey questionnaire. The results of the analysis revealed that the contribution of KISs to the innovation capability of manufacturers is significant. Large manufacturers that hold internal capability to supply KISs are also active in using external KISs. The manufacturing firms that utilized KISs intensively proved to be more innovative than those did not. Heavy KISs users also entertained benefits of capability enhancement as they improved monitoring and achieved efficient application of knowledge asset into product and process innovation. The role of public KISs in the innovation of manufacturers appeared to be indirect and done mainly through education and public R&D activities. Direct input, such as public software service, was not utilized as much in service suppliers themselves. The major reason is that public KISs may not be relevant to their actual needs. Manufacturers have implemented both tighter integration of familiar KISs and loosely coupled unfamiliar KISs.