Innovation in Knowledge Intensive Business Services in Palestine: A conceptual framework

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عبد الهادي, مي ربيع قاسم
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An-Najah National University
This research aims to introduce a structural analysis for the innovation in the Knowledge Intensive Business Services (KIBS) in Palestine; which is expected to contribute to an improvement in the economic performance and labor productivity. To this end, an assessment of the innovation performance for fourteen KIBS subsectors, considering different factors, including internal capabilities, enabling environment, sources of innovation, limitations, and obstacles, as well as the impact of innovation on the organizational performance. The study is conducted using a cross sectional data for a sample of 305 firms through a quantitative survey approach. Results show that there is a weak innovation performance in KIBS firms in Palestine in general, Also, the analysis of the obstacles of innovation shows that there is a significant association between innovation performance and the obstacles of innovation the firm may face. The cost factor was found to be the greatest factor having negative impact on all types of innovation. However, the knowledge factor was found to have a positive impact. The findings of this study encourage the strategic integration of the innovation within the KIBS, bringing global experiences and learning from others, bringing other actors to the innovation systems, and improving the innovation infrastructure in Palestine.