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Monitoring of the KIBS sector

Priority areas of development: economics
The project has been carried out as part of the HSE Program of Fundamental Studies.

Research Purpose: Advanced analysis of accumulated empirical data on the KIBS sector in Russia and dissemination of results both in academic and in professional communities.


The KIBS sectors covered in the surveys are advertising, marketing, audit, IT-services, recruitment, engineering, financial advice, legal advice, property development services, and business design. This choice includes most of the industries described as KIBS in the existing literature.

The study involves data derive from specialised surveys that have been undertaken in Russia, covering both producers and consumers of KIBS. The core of the surveys was replicated across this period, but some questions were only asked in particular years, so our reporting uses both time series and fragmentary data from various years according to availability.

Executives of producing and consuming bodies answered questions on their own company and on the more general market developments. Questionnaires for both parts were matching (”mirror”). All surveys are anonymous, some firms (approx.15-20%) may be included in several surveys (not necessarily successive), but it does not alter the generalised results.

Empirical information was treated with statistical, econometrician and Bayesian methods depending on research questions and structures of primary datasets.

Empirical Basis of Research:

The data used here derive from specialised surveys that have been undertaken in Russia, covering about 600 producers of KIBS annually for each year across 2007-13.

We also draw on data about KIBS users.  In 2007, 2011 and in 2013, a survey parallel to that of KIBS suppliers covered over 700 business consumers of one or more of the KIBS services discussed above. Each of the business consumers were asked about their experiences with each of the types of KIBS, so we have about 3000 observations by customers about their experiences.

In 2007 and 2013 we also surveyed KIBS consumers from public sector (210 and 237 respondents respectively). The sample included government/municipal bodies and public sector institutions who answered the same questions as private business consumers of KIBS.

Design and analysis of all sets of surveys were also informed by structured interviews, conducted on an annual basis, with at least 6 experts from each KIBS sector. These are drawn from the top executives of the leading provider companies from each sector; their interviews were used for preliminary discussions of research hypotheses, for the scaling of quantitative answers that are later proposed to the participants of mass surveying, and to inform our interpretations more generally.

Research Results:

а) Theoretical model of asymmetric perception between providers and users of KIBS. Asymmetric perception arises when the parties differ in their valuation of [possibly symmetric] information coming from different sources. Through a comparative statics exercise we are able to explain the sources of asymmetric perception and predict its reduction with an improvement in customers' experience, as well as a reversal of asymmetry in perception when the market shrinks. Asymmetric perception is shown to have negative implications for social welfare; we suggest measures aimed at its reduction.

b) Advanced studies of selected KIBS.

  • Marketing services. We provide quantitative estimations of state and dynamics of this sector, involving broad empirical basis derive from surveys, statistical data and expert assessments. The study includes both general quantitative variables (market turnover, revenues, market structure and employment) and sector-specific ones (co-production with customers and standardisation of services). Empirical analysis proves that crisis developments contracted the market severely and caused deteriorating qualitative shifts. The backside of crisis however is the growing maturity of both providers and customers of marketing services.
  • Advertising services. The study is based on similar empirical background as in the case of marketing services. Empirical analysis reveals decreasing share of advertising both in Russian GDP and at international market for this services. We explain this phenomenon by structural shifts in demand for advertising due to expansion of non-market zones in Russian economy during the crisis. This conclusion is supported by our cross-sectional study of demand for advertising services.
  • Services of financial intermediation. The focus of our study is innovation activities in Russian financial institutions. We provide empirical evidence about their propensity to innovate, which is too low now. We make an attempt to reveal the potential incentives to introduce financial innovations by factor analysis which involves both econometric and Bayesian methods. We try a set of explanatory variables that characterise size, turnover, human capital costs, share of standard services and consumer satisfaction. We conclude that providers of financial services meet demand constraints rather than supply ones.

c) Studies of public procurement of KIBS . We compare efficiencies of both procedures and outcomes of KIBS consumption for private and public customers. We show how legislative constraints may turn public consumers from the most efficient provider. Public bodies are also known to have less efficient management and distorted system of incentives; these features appear in their KIBS consuming behaviour and result in imperfect absorption of services. Nevertheless proper public procurement of KIBS may support the development of this sector both directly (by purchasing services) and indirectly (by demonstrating the benefits of KIBS consumption to the private sector). We provide recommendations about the optimal choice of procurement mechanisms and about the system of incentives in public institutions.

d) Spatial analysis of KIBS sector. We fulfill comparative studies of KIBS inflows and outflows in/from major regions of Russia. Then we classify these regions by intensity of KIBS domestic interchanges. The study results in mapping of supply of and demand for KIBS across Russian territory. We reveal spatial misbalances between supply of services, which is strongly spatially concentrated, and demand for them, which is more spatially neutral.

Implementation and recommendations

Project results are widely used for practical purposes, namely within research and applied projects for the following groups of customers:

  • federal and regional government bodies;
  • public corporations;
  • research institutions of both general and industrial profiles.

Recommendations for further application:

  • corporate innovation strategies, including programmes for business diversification;
  • regional innovation strategies, including cluster initiatives and structural adjustment programmes:
  • legislative and regulatory initiatives, including institutional reforms.


Vinogradov D., Shadrina E. V., Kokareva L. Public Procurement Mechanisms for Public-Private Partnerships // Journal of Public Procurement. 2014. Vol. 14. No. 4. P. 538-566.
Крупкина А. С. Моделирование финансовых инноваций в банковском секторе // Научно-исследовательский финансовый институт. Финансовый журнал. 2014. № 1(19). С. 91-101.
Крупкина А. С. Развитие интеллектуальных услуг в сфере финансового посредничества // Банковское дело. 2014. № 12. С. 42-46.
Marina Doroshenko, Vinogradov D. Value (co)creation in emerging KIBS industries: Absorptive capacity matters. Evidence from Russia, in: Proceedings of XXIV Annual RESER Conference 2014 "Services and New Societal Challenges: Innovation for Sustainable Growth and Welfare". Espoo : , 2014. P. 368-377.
Marina Doroshenko, Ian Miles, Vinogradov D. Knowledge Intensive Business Services: the Russian Experience // Foresight and STI Governance. 2014. Vol. 8. No. 4. P. 24-39. doi