This article aims at developing an analytical framework in order to highlight the significance of the markets for knowledge. The empirical evidence provides the basis for analysing diverse governance mechanisms in high tech sectors. Increasing specialisation of knowledge production is pointed out from biotechnology and semiconductor industry. Next, the running of the markets for knowledge leads to appreciate the role of KIBSF in traditional services and new-technology based services. Finally, the behaviours of knowledge producers is linked to various tradeoffs they encounter.