Research on the Functioning Mechanism of Knowledge Intensive Business Service

With the development of the knowledge economy, knowledge-intensive business service (KIBS) becomes the important part of the knowledge infrastructure of the society. It has not only represented the multi-functions as fundamental knowledge production and reallocation, but also has a significant stimulated power for the other industries in the national economy. KIBS plays an important role in the national innovation system and economic development through the driving mechanism constructed by following aspects as knowledge share and transmission mechanism, interaction with customer enterprises mechanism, economic growth facilitating mechanism, etc. This paper aims to illustrate the principle and mechanism of innovation enhancement driven by KIBS in the national innovation system based on above three aspects. The three types of mechanisms also interact with each other to compose an integrated and complicated large system, under which KIBS is able to play a key important role in regional innovation and economic development.