What role for knowledge-intensive business services (KIBS) in de-industrialised regions?

This paper seeks to provide insights into the structural role that Knowledge Intensive Business Services (KIBS) SMEs play in de-industrialised regions in the UK. The paper aims to establish what contribution KIBS make to their regional economies in terms of exports to other regions in the UK as well as abroad but also to what extent do they depend on the intermediate demand in their respective regions. The paper draws evidence from a survey of KIBS SMEs in the North East and the West Midlands conducted during the most recent recession. The results exhibit a degree of wider generalizability to other regions, which may be characterised by deindustrialisation. Results from the West Midlands and the North East survey show that although KIBS play an important role in the local economic base of de-industrialised regions they are not as important as their elite, tradable counterparts in global cities such as London. However, KIBS SMEs in the North East and West Midlands provide important support to their regional clients, many of which are in the declining manufacturing and public service sectors. A vast majority are also trading outside their respective regions