The role of technology-based knowledge-intensive business services in the innovation performance of manufacturing firms in Mexico

This paper examines the role of Technology-based Knowledge-Intensive Business Services (T-KIBS) as potential suppliers of crucial knowledge for innovation in foreign and domestic manufacturing firms in medium technology sectors. An emphasis is made on the mechanisms in which T-KIBS impact the innovation outputs of firms. The analysis is based on a sample of 3 907 manufacturing firms with 10 or more employees from the period of 2010 to 2013. The results show that product innovation in medium-low-tech (MLT) and medium-high-tech (MHT) manufacturing firms is positively influenced by T-KIBS to different extents depending on their ownership. Our findings suggest that T-KIBS might be linked to greater rates of innovation in manufacturing firms in an emerging economy.