sector level, focusing on their role in innovation processes, little attention has been paid to the knowledge workers within … the micro-level are central to understand how KIBS can drive innovation in regional and national economies by contributing …

firms. Specifically, we explore the impact of vertical R&D cooperation on firms’ process innovation, outputs, market prices … integrated industry. Contribution & Value Added: Firms’ process innovation benefits from the vertical integration of the industry …

, knowledge is formalized, new technology replaces old and patents increase innovation incentives. In the other, knowledge is not … formalized, old technology coexists with new, patents decrease innovation incentives and firms sometimes freely exchange … knowledge. The equilibrium changes as technology improves over a life-cycle, affecting firm strategy, innovation policy …

study shows that these social networks are an essential driver of knowledge integration and innovation. …