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Knowledge Intensive Business Services and Urban Industrial Development1. The KIBS sector is here delimited in accordance with OECD [2001 OECD.2001. OECD Science, Technology and Industry Scoreboard 2001 – Towards aKnowledge Based Economy, Paris: OECD. [Google Scholar]] as NACE codes 71, 72,73 and 74. The urban regions are regarded as labour market regions [see Fossand Selstad, 1997 Foss, O. and Selstad, T. 1997. “Bosettinger og næringer”. InRegional arbeidsdeling, Edited by: Foss, O. and Selstad, T. Oslo: TanoAschehoug. [Google Scholar]]. Source: Register data from Statistics Norway.2. The software industry is delimited to NACE code 722 Consultancy servicesconnected to system- and software, while organisational consultancies aredelimited to NACE code 7414, Business consultancy.3. The telephone survey is directed at a somewhat wider sample of businessesthan is the case for the interviews. The survey included NACE 72 Dataprocessing industry, NACE 7414 Business advisory industry, 74201 Architecturalservices, 74202 Building and construction consultancy and 74209 Othertechnical consultancy services. A wider sample was selected in order to obtainresponses from a total of 600 software firms (here NACE 72) and organisationalconsultants (here NACE 7414, 74201, 74202 and 74209).4. Storper and Scott [1990 Storper, M. and Scott, A. J. 1990. Workorganisation and local labour markets in an era of flexible production.International Labour Review, 120(5): 573–91. [Google Scholar]: 573] defined‘financial and producer services, especially those directed to the corporatesector’ as one of the flexible sectors. The other two are traditional craftand design intensive industries and high-tech industry.5. Source: Registered data from Statistics Norway. The rapid growth alsoreflects a low point of departure in 1991, with barely 6,000 employees in thesoftware industry and 13,000 organisational consultants.6. The demand may be further stimulated by the fact that KIBS firms in bigcities are located at prestigious addresses. To be situated in (parts of) abig city may be an indication of quality and safety in a changing and complexmarket [Keeble and Nachum, 2002 Keeble, D. and Nachum, L. 2002. Why dobusiness service firms cluster? Small consultancies, clustering anddecentralization in London and southern England. Trans Inst Br Geogr, 27:67–90. NS[Crossref], [Web of Science ®] , [Google Scholar]: 85].7. The group ‘consultants’ includes mainly software companies andorganisational consultants.