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What do firms like IBM, Accenture, McKinsey, and EDS have in common? They are all knowledge-intensive business service firms whose clients play a critical role in helping them to cocreate or “co-produce” the knowledge-based service solution. Knowledge-intensive business-to-business services such as these will account for an increasingly larger share of innovation and value creation. The growing economic significance of knowledge-intensive business services is evidenced by consideration of value-added statistics from ISIC 8 (finance, insurance, real estate, and business services) of the International Standard Industrial Classification. These statistics reveal that ISIC 8, of which knowledge-intensive business services are a key part, contribute over 30% of the total value added from services in the United States and the UK. 1 However, because the knowledge-based output of these firms is created for a …