The Empirical Study on the Relationship between the Knowledge Intensive Business Service (KIBS) and Economic Development in Shanghai

The Knowledge Intensive Business Service (KIBS) emerges and becomes the main innovative sub industry in the Service Industry. This paper firstly sets up the index system which is utilized to make a relevant analysis with regional innovation performance of Shanghai; its result proves that KIBS has a close interaction with regional innovation system. Based on the elasticity model, this paper demonstrates KIBS played an important role in accelerating Shanghai economy, and it helped to expand knowledge, innovated industry, however, the pushing from KIBS innovation to economy was still limited in Shanghai. Calculate the inductance coefficient and influence coefficient to prove the KIBS's inductance degree and influence degree are greater than the average level of all the other industries. Finally, several policy suggestions to effectively develop KIBS in Shanghai are put forward.