XXII. MEZINÁRODNÍ KOLOKVIUM O REGIONÁLNÍCH
VĚDÁCH. SBORNÍK PŘÍSPĚVKŮ
22nd
INTERNATIONAL COLLOQUIUM ON REGIONAL
SCIENCES.CONFERENCE PROCEEDINGS
Place: Velké Bílovice (Czech Republic)
June 12-16, 2019
Publisher: Masarykova univerzita (Masaryk University Press), Brno
Edited by:
Viktorie KLÍMOVÁ
Vladimír ŽÍTEK
(Masarykova univerzita / Masaryk University, Czech Republic)
Vzor citace / Citation example:
AUTOR, A. Název článku. In Klímová, V., Žítek, V. (eds.) XXII. mezinárodní kolokvium o regionálních
vědách. Sborník příspěvků. Brno: Masarykova univerzita, 2019. s. 1–5. ISBN 978-80-210-9268-6.
DOI.
AUTHOR, A. Title of paper. In Klímová, V., Žítek, V. (eds.) 22nd
International Colloquium on Regional
Sciences. Conference Proceedings. Brno: Masaryk University Press, 2019. pp. 1–5. ISBN 978-80-
210-9268-6. DOI.
Publikace neprošla jazykovou úpravou. / Publication is not a subject of language check.
Za správnost obsahu a originalitu výzkumu zodpovídají autoři. / Authors are fully responsible for the content and
originality of the articles.
© 2019 Masarykova univerzita
ISBN 978-80-210-9268-6 (online : pdf)
 
 
 
XXII. mezinárodní kolokvium o regionálních vědách Sborník příspěvků Velké Bílovice 12.–14. 6. 2019
 
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DOI: 10.5817/CZ.MUNI.P210-9268-2019-5
KNOWLEDGE INTENSIVE BUSINESS SERVICES (KIBS)
AND POTENTIAL OF REGIONS IN VISEGRAD GROUP
COUNTRIES
Znalostně náročně obchodní služby (KIBS) a potenciál regionů ve
státech Visegradské skupiny
PETR HLAVÁČEK 1
MAŁGORZATA MARKOWSKA 2
ELŻBIETA SOBCZAK 2
1
Katedra regionálního rozvoje a veřejné správy
Fakulta sociálně ekonomická
Univerzita Jana Evangelisty Purkyně
1
Depart. of Reg. Develop. and Public Administration
Faculty of Social and Economic Studies
Jan Evangelista Purkyně University
 Moskevská 54, 400 96 Ústí nad Labem
E-mail: petr.hlavacek@ujep.cz
2
Katedra regionáln ekononmie
Fakulta ekonomie, managementu a turismu
Ekonomická univerzita ve Vratislavi
2
Department of Regional Economics
Faculty of Economy, Management and Tourism
Wroclaw University of Economicz
 Nowowejska 3, 58-500 Jelenia Góra, Poland
E-mail: malgorzata.markowska@ue.wroc.pl, elzbieta.sobczak@ue.wroc.pl
Annotation
The article examines the knowledge intensive business services (KIBS) branch and the differences in their spatial
distribution in the examples of the regions in Visegrad group countries. The localization of KIBS shows that the
services are more concentrated in metropolitan areas and economically developed regions, from where they can
be used by organizations and companies located on less economically developed regions. From the regional
innovation system theory point of view, the structure of the institutional environment in the region, localization of
universities and R&D institutions interconnected with the organizations in the networks with the support of the
state institutions from public resources, have a positive influence on the development of KIBS in regional
economies. These factors and agglomeration effects are more characteristic for metropolitan and economically
growing regions.
Key words
knowledge intensive business services, region, Visegrad
Anotace
Článek hodnotí rozdíly v prostorovém rozložení znalostně náročných obchodních služeb (KIBS) na příkladu
regionů NUTS II. v zemích Visegrádské skupiny. Lokalizace KIBS ukazuje, že služby jsou více soustředěny v
metropolitních oblastech a v ekonomicky rozvinutých regionech, odkud je mohou čerpat společnosti a podniky,
lokalizovanými v méně ekonomicky rozvinutých regionech. Z pohledu teorie regionálního inovačního systému má
struktura institucionálního prostředí v regionu, lokalizace vysokých škol a institucí VaV propojených s
organizacemi v sítích s podporou státních institucí z veřejných zdrojů pozitivní vliv na rozvoj KIBS v regionálních
ekonomikách. Uvedené faktory a aglomereční efekty jsou právě charakteristické spíše pro metropolitní a
ekonomicky rostoucí regiony.
Klíčová slova
znalostně náročné služby, region, Visegrad
JEL classification: R11, R12, L10
XXII. mezinárodní kolokvium o regionálních vědách Sborník příspěvků Velké Bílovice 12.–14. 6. 2019
 
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1. Introduction
Knowledge Intensive Business Services (KIBS) have recorded significant growth in the last years.They
increasingly contribute to employment and production in post-communist countries because KIBS are important
in these economies for the productivity and competitiveness of production chains and work as a knowledge base
of the economy (Cascaldi, Faber & Kishna 2013; Capik & Drahokoupil, 2011). The importance of Knowledge
Intensive Business Services for transitive economies consists of the fact that KIBS has become innovation
spreaders (Bolisani & Scarso, 2009) because they transfer knowledge to other sectors (Den Hertog, 2000), which
positively contributes to the transformation of the economic structure.
The growing importance of KIBS for the economic growth of Central European countries and post-communist
economies shows in the interest ofresearch the role of these services in the modernisation of economies and
innovation processes (Blažek & Csank, 2015), because they are expected to help integrate the regions of postcommunist
countries into global production networks. The research of KIBS in post-communist economies at the
regional level can thus be considered an interesting topic, bringing about new information on the qualitative
changes in transitive economies. Many works point out the benefit of KIBS for the development of the innovative
environment (Corrocher, Cusmano & Morrison, 2009; Koch & Stahlecker, 2006; Simmie & Strambach, 2006);
the significance of KIBS for the economy also grows as a result of the development of new technologies, which
subsequently open further opportunities for the development of new services and innovations. For transitive
economies in Central Europe, KIBS should thus become one of the tools for the increase inthe competitiveness
and modernisation of economies.
The research of KIBS is focused on the spatial distribution of KIBS and the analyses of KIBS branches in various
territorial units, ranging from the macro-regional (economic groupings and specific states) up to the regional and
local level, as well as spatial specialization on T-KIBS branches. The innovations do not emerge in an isolated
way in the global and knowledge-based society, but rather as a consequence of linearly interconnected activities
from the regional level up to the global level. In the global economy, the developed regional economies are also
often the bearers of regional specialization in the field of KIBS in different paths of internalisation (Toivonen,
Tuominen, Smedlund & Patala, 2009).
At the macro-regional level, the significance of the production of the KIBS sector is documented by the fact, that
the most advanced economies are capable of absorbing the production of the KIBS sector of the economy with a
stronger impact on achieving economic growth. Whereas at the macro-regional level there are many analyses at
the state level, there is inspiring research at the regional and micro-regional level (Ženka, Novotný, Slach & Ivan,
2015), that analyze the local groupings of organizations and institutions from the KIBS area, and the differences
in their spatial distribution. However, limited availability of data is an issue, and data is usually only available
from individual quality research. The research of the spatial distribution of KIBS documents the increased
integration with strong industrial clusters (according to Thomi & Böhn 2003) that may also dampen the negative
impact of the peripheral nature of a specific region in which the cluster is located. Localization of the KIBS
organization also reflects specific factors, such as the attractiveness of the location (Schricke, Zenker, & Stahlecker
2012), regional labour market potential, performance of the regional economy, as well as soft factors, such as the
availability of tacit knowledge (Merino & Rubalcaba, 2013). Gallego, Maroto (2016) emphasise the environment
of face-to-face contacts and thus also the factor of geographic proximity of KIBS firms and production plants. The
sector of T-KIBS firms existing outside production plants also points out the changes in the organisation of
production relationships and the production chain, which leads to the formation of regionally specific structures
from the spatial standpoint. The result is that the regions have differently developed KIBS and the innovation
potential that establishes spatially diversified assumptions for the regional economy growth. The KIBS
concentration level, particularly for IT and technological services, R&D and innovation activities, has therefore
become the key element for the increased competitiveness of the production organizations in the region. It is the
absence or inferior quality of the production services, which are often regarded as one of the grounds for the
economic stagnation of the transition economies or peripheral regions.
The object of the article is to identify the existing differences in KIBS at the regional level, and the differences
among the regions with their potential for development of the regional innovation system. The research objects
will be applied in the analysis of the regions of Visegrad countries and the objects will also respond to the question
of which regions are the most developed in KIBS.
XXII. mezinárodní kolokvium o regionálních vědách Sborník příspěvků Velké Bílovice 12.–14. 6. 2019
 
48
2. The hierarchy of the spatial distribution of KIBS: from global production chains
down to regional innovation systems
Two main tendencies in the spatial arrangement of the economy meet in the KIBS location at the territorial
hierarchy levels. The first tendency is the globalization that facilitates the expansion of the organizations on the
global markets. When the global processes and the role of KIBS are viewed theoretically, the theory of global
production chains may be employed (Coe, Dicken & Hess, 2008), which explains the spatial organization of the
production relationships and their influence on the global and macro-regional markets. The theory points to the
fragmentation of the production processes in the global economy and operates with patterns executed by the
supranational organizations in the optimization of the geographical location of the production (Blažek, 2012),
usually effected by direct foreign investment.
The global production chains remove the spatial barriers when using regionally localized T-KIBS. The chains
create impulses for the differentiation of the offer of services, and offer improved expansion of export to companies
that use regionally specific segments of KIBS, particularly with the innovations in IT and R&D, because KIBS
does not need to be localized in the same place as their customers. Complex and sophisticated production comes
from the cooperation with many organizations from different countries; the production substantially uses the knowhow
of KIBS organizations from the different states involved in the global production chain.
The other tendency is the regionalization process because the conditions for an increased level of regional
specialization of the economies are established under the global economy due to the reduced barriers for export to
foreign markets. Research of regional economies in the Czech Republic shows the different trends of economic
development on the micro-regional level (Ženka, Novotný, Slach & Květoň, 2015). According to Blažek and
Csank (2007), the phase of divergent development has ended; there are no significant changes to the regional
differences because the structure of growth and the stagnating regional economies have stabilized. It could be
stated that KIBS increase the innovation performance of the regions (Lau & Lo, 2015) as well as that developed
regional economies reinforce the development of KIBS, which may be a mutually integrated development process.
2.1 Data and methods
The analysis is based on the research goal and data, which can be divided into two areas – human sources of KIBS
and the economic potential of the regions. The group of indicators, consists folowing data:
 GDPEA(1-n) - represents gross domestic product per capita that provides a representative insight to the
economic potential of the region (in Eur per capita)
 AHRST(1-n) - share in university students (ISCED) in the IT field per work force in %
 AKIBS(1-n) - share of employment in KIBS on employment total (in %)
 RDEX (1-n) - Intramural R&D expenditure (GERD) in Euro per Inhabitant
The analytical part first applies the method of aggregate assessment, which is beneficial in that it summarizes the
assessment of different data for selected territorial units. This article analyzes data at the regional level NUTS II.
in Visegrad countries. It is suitable to use a wide range of indicators to analyse the regional potential; these are
sufficiently representative with longer statistical monitoring. The paper uses a group of selected indicators that
sufficiently describe the main developmental changes in the selected fields in connection with qualitative ranges
in the regions.
The goal for classification of the regions into groups is aimed at defining the categories of the regions by the
developmental level of Knowledge Business Intensive Services enviroment for each region. An aggregate indicator
(IKIBS) was designed for two years (2013 and 2016), both the indices were calculated according to the following
formula:
IKIBS13(1-n)
∗ ∗ ∗ ∗
/4
(1)
IKIBS16(1-n)
∗ ∗ ∗ ∗
/4
(2)
where:
IKIBS13(1-n) - Index of KIBS potential in 2013; IKIKB16(1-n) - Index of KIBS potential in 2016;
1-n - regions in Visegrad countries; Xmax – maximal value of indicator
XXII. mezinárodní kolokvium o regionálních vědách Sborník příspěvků Velké Bílovice 12.–14. 6. 2019
 
49
The second part of analysis was focused on the application of the correlation analysis to the variables mentioned
above. The reason for the use of the correlation analysis was to find out which mutual relationships exist among
the monitored values and how intensively they are influenced in this relationship.
2.2 Results
The value of the KIBS Index (Table 1) was the highest in the regions such as Prague, Central Hungary, Bratislava
and Masovia, where the capital city is located. Above-average values also include regions with developed
metropolitan areas, such as the Southeast Region or Lower Silesia. Better results are also achieved by regions in
the close to large metropolitan centers, for example the Central Bohemia Region.
Table 1: Index of Knowledge Intensive Business Services ( IKIBS13, IKIBS16 ) and selected normalized indices of
Visegrad regions
Region NUTS II.
GDPEA
13
HRST
13
AKIBS
13
RDE
13
IKIBS
13
GDPEA
16
HRS
T16
AKIBS
16
RDE
16
IKIBS
16
Prague 92.3 35.7 49.4 100.0 69.3 98.9 100.0 50.9 100.0 87.5
Central Bohemia 39.5 21.4 34.0 26.2 30.3 43.8 57.4 33.0 29.0 32.6
Southwest 39.5 19.8 28.5 26.3 28.5 41.9 53.0 28.8 22.9 29.3
Northwest 33.4 15.5 29.1 5.9 21.0 34.3 44.5 29.3 4.4 22.5
Northeast 36.2 18.6 29.8 24.4 27.2 39.3 54.1 30.5 18.1 28.4
Southeast 41.9 21.9 33.2 46.6 35.9 43.9 64.4 32.5 43.6 36.9
Central Moravia 35.8 16.9 29.1 24.1 26.4 38.7 52.5 27.5 17.2 27.2
Moravian-Silesian 36.8 18.4 30.0 18.7 26.0 40.6 54.2 30.3 16.3 28.3
Central Hungary 57.1 26.9 44.1 37.0 41.3 55.5 77.2 48.2 32.4 42.7
Central Transdanubia 31.8 16.7 28.4 11.1 22.0 34.6 45.9 26.7 10.4 23.5
Western Transdanubia 35.8 16.6 26.0 7.7 21.5 40.0 48.2 26.2 7.4 24.4
Southern Transdanubia 24.1 15.4 37.1 7.9 21.1 24.0 44.1 39.7 3.2 22.2
Northern Hungary 21.7 14.0 35.0 4.6 18.8 24.2 40.9 34.9 3.8 20.8
Northern Great Plain 24.5 15.3 36.8 9.2 21.5 26.1 40.5 37.5 8.1 22.4
Southern Great Plain 24.5 15.7 33.5 9.1 20.7 26.1 44.8 32.8 13.7 23.5
Lódź 33.0 22.1 28.5 9.2 23.2 34.6 57.5 29.0 7.3 25.7
Masovia 56.9 26.5 40.1 28.1 37.9 59.0 76.3 39.9 32.5 41.6
Lesser Poland 31.4 19.3 31.0 15.0 24.2 33.7 59.1 31.3 15.9 28.0
Silesia 37.0 21.2 30.3 8.6 24.3 38.5 58.7 29.3 7.4 26.8
Greater Poland 37.9 17.0 25.3 12.0 23.1 40.4 54.0 25.9 9.5 26.0
West Pomerania 29.4 16.0 34.9 4.0 21.1 31.1 54.3 34.2 3.3 24.6
Lubusz 29.4 17.1 31.0 2.1 19.9 31.1 48.0 30.3 2.2 22.3
Lower Silesia 39.7 18.4 34.2 10.2 25.6 41.2 60.8 33.1 11.1 29.2
Opole 28.5 15.1 28.6 2.1 18.5 29.6 50.5 27.5 3.2 22.2
Kuyavia-Pomerania 29.1 15.3 28.2 4.4 19.3 30.4 49.7 29.2 4.4 22.7
Warmia-Masuria 25.3 16.1 32.1 4.5 19.5 26.4 47.7 30.8 2.7 21.5
Pomerania 34.2 19.8 33.5 13.6 25.3 35.9 61.9 33.4 12.7 28.8
Holy Cross Province 25.9 20.6 27.1 2.9 19.1 26.6 52.0 27.7 5.2 22.3
Lublin 25.1 20.0 30.5 9.2 21.2 25.5 52.9 29.0 8.6 23.2
Subcarpathia 25.1 17.0 28.5 9.2 20.0 26.1 52.7 29.7 10.8 23.9
Podlaskie 25.9 17.4 29.8 3.6 19.2 26.3 54.5 28.6 6.4 23.2
Bratislava 100.0 35.4 50.9 66.1 63.1 100.0 94.0 45.8 67.9 61.5
West Slovakia 38.1 16.5 27.1 5.6 21.8 38.9 53.5 28.6 12.3 26.7
Central Slovakia 32.0 18.0 32.5 8.5 22.8 33.3 50.3 34.6 13.9 26.4
East Slovakia 27.7 16.0 32.1 7.6 20.8 29.1 45.7 34.4 7.9 23.4
Source: own research based on EUROSTAT
However, the weaker potential for Knowledge Intensive Business Services delivery may have a higher degree of
urbanization but with larger structural problems, such as the Northwest and Lodz regions, which are still
undergoing the economic transformation typical for the old industrial regions. The under-average potential in the
XXII. mezinárodní kolokvium o regionálních vědách Sborník příspěvků Velké Bílovice 12.–14. 6. 2019
 
50
KIBS segmatics consists of non-metropolitan regions, with little industrial and peripheral regions within individual
states, as is evident from the Polish regions (Warmia-Masovia, Lubusz) or Hungarian (Northern Hungary).
The results of the correlation analysis show (Table 2.) a statistically significant dependency between the Index
of Knowledge Business Intensive Sservices and R&D expenditure and the level of GDP per capita. On the other
hand, the dependency between the share in university students in the IT field concentration of Knowledge Business
Intensive Sservices was not found. The reason may be the fact that the regions with a higher share of students
attract graduates from other regions because it offers a higher number of jobs and a well developed IT sector
environment and R&D
.
On the other hand, the comparison of the correlation between KIBS and the other indicators did not show a higher
dependence of the values. Statistically the dependence was shown to be stronger among the other monitored
indicators ether than in their relation to the KIBS concentration.
Table 2: Correlation dependency of regional indicators in the Czech Republic
GDP
EA13
HRST1
3
AKIBS
13
RDEX
13
IKIBS1
3
GDPEA1
6
HRST
16
AKIBS
16
RDEX
16
IKIBS
16
GDPEA13 1.000 .684**
.109 .682**
.854**
.988**
.759**
.087 .700**
.880**
HRST13 .684**
1.000 .202 .676**
.740**
.670**
.843**
.162 .660**
.763**
AKIBS13 .109 .202 1.000 .341*
.342*
.106 .237 .932**
.291 .280
RDE13 .682**
.676**
.341*
1.000 .920**
.713**
.614**
.313 .907**
.853**
IKIBS13 .854**
.740**
.342*
.920**
1.000 .861**
.720**
.308 .856**
.932**
GDPEA16 .988**
.670**
.106 .713**
.861**
1.000 .732**
.083 .717**
.879**
HRST16 .759**
.843**
.237 .614**
.720**
.732**
1.000 .170 .623**
.832**
AKIBS16 .087 .162 .932**
.313 .308 .083 .170 1.000 .296 .272
RDEX16 .700**
.660**
.291 .907**
.856**
.717**
.623**
.296 1.000 .894**
IKIBS16 .880**
.763**
.280 .853**
.932**
.879**
.832**
.272 .894**
1.000
**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).
Source: own research based on EUROSTAT
The negative correlation was associated with the unemployment rate with respect to the other variables. The higher
dependency was also found between the macro-economic indicator segment (GDP per capita) in years 2013 and
2016 and with the share of students in the IT field (the correlation is significant at 0.01 level). In most cases, the
regions with a higher Index of KIBS shows a higher GDP level per capita and higher R&D expenditure.
Higher dependency with significance at 0.05 level was also expressed between the concentration of the share in
university students in the IT field and level of GDP per capita or R&D expenditure per inhabitant, than between
KIBS. On the other hand, the comparison of the correlation between KIBS and the other indicators did not show
a higher dependence of the values, statistically the dependence was shown to be stronger among the other
monitored indicators rather than in their relation to the KIBS concentration.
3. Discussion and Conclusion
The KIBS sector is experiencing dynamic development in these recent years in the Visegrad countries,
concentrated especially in the fields of IT services. However, it still falls short in transitive economies, behind the
developed economies of Western Europe. The object of the article is to identify the existing differences between
regional labour markets of T-KIBS at the regional level and the differences among the regions in their potential
for development of the regional innovation system by using KIBS. The article contributes the research of the
services with a direct influence on the support of innovation development and the growth of competitiveness. This
was achieved by analysing the environment of regional economies and the relationship between their economic
potential and the sector of technological KIBS. The benefit of the article consists in the discerning of the
differences and regularity in the distribution of KIBS in the territory and their connection to further regional socioeconomic
indicators and the specific types of regional economies.
The development of the regional differences was analysed with the use of a data file aimed at the main
macroeconomic indicators, and the indicators representing the regional labour markets in the field of information
technologies. The localisation of T-KIBS shows that these services have a tendency to concentrate in regions with
metropolitan areas or in their close vicinity and less in peripheral or non-metropolitan regions in Visegrad
countries.
XXII. mezinárodní kolokvium o regionálních vědách Sborník příspěvků Velké Bílovice 12.–14. 6. 2019
 
51
Specific positions have regions such as Moravian-Silesian Region, Nordwest and Lodz regions, these regions are
old industrial regions with the most negative impact in the course of economic transformation. This is because
both regions have had to significantly re-structuralize their industries and re-orientate them from smokestack
industries to new ones, such as automotive, electric engineering (Novák & Drdová, 2013), and particular services,
including KIBS, which absorbed a high number of employees dismissed from the industry.
The regional differences in KIBS development are higher than in the economic potential of the regions. The
summary assessment of the potential of the regional economies points to the relative interconnection with the
regional labour market and KIBS. A region with a long developed economy and higher gross domestic product
has created better conditions for the development of KIBS, even through the innovation activity. Further causes of
regional differences in the concentration of technological KIBS are related to the restructuring and modernisation
of regions, which have been accelerated by the regionally differentiated influx of direct foreign investment, marked
by higher performance of the IT services sector, where this investment was aimed more at metropolitan areas. The
result of the correlation analysis reveals a statistically significant dependency between KIBS development and the
economic potential of the regions. It could be stated that KIBS may be regarded as an indicator of regional
development. According to Gallego, Maroto (2016), the quick spreading of information and communication
technologies and services decreases the requirement for the geographical proximity of companies.
However, due to the externalities and agglomeration effects, such as spillover effects and educational profiles,
the authors consider the spatial closeness of company co-localisation an important factor of the development of
the KIBS sector and regional specialisation. It is possible to state that the regional differences are in the
technological concentration. KIBS development support should aim at, in addition to the infrastructure support for
R&D, the support of human and social potential, and at establishing the conditions to develop the local labour
markets in the field of KIBS.
From the practical standpoint, the results of the research of spatial differentiations in the potential of KIBS may
help public administration in forming regional tools of innovative policies. These are for supporting the growth of
innovation performance, because the level of concentration of KIBS is frequently linked to the level of regional
innovative potential and other indicators, which have a direct influence on the development of the economic
potential of the regions.
The research results have certain limits consisting of the selection of indicators, which were limited by the
availability of relevant data from the area of technological company performance. The data for the sector of
technological companies is published in a limited scope. In addition, the connectivity between the potential of the
regional labour market and the development of the KIBS sectors addreses the problem of different capacities and
university specialisation. Here, students must complete education in the area of technologies and information
technology in main metropolitan areas, because the relevant study programmes at regional universities are less
developed for technological KIBS. A theme for further research may be the implementation of different data,
which will represents other components of advanced business services or regional economic indices.
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Research was supported by GACR grant No. 18-11299S - The development of trajectories of traditional
industries in the old industrial region