320 Copyright © 2015, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 19 DOI: 10.4018/978-1-4666-8348-8.ch019 Knowledge Transfer between Universities and Knowledge Intensive Business Services: An Empirical Study ABSTRACT In this chapter, the authors study the importance of regional entrepreneurship as well as the characteris- tics of location, and show that the basis for creation of new firms is knowledge, thus giving emphasis to broadcasters (spillovers) of knowledge coming from universities and other R&D institutions. Thus, the knowledge generated arises from the collaboration between companies and public research institutions (Audretsch & Lehmann, 2005). Here, the authors specifically address the KIBS to the extent that they are creators, users, and transmitters of intensive knowledge. This shows the importance of the study of cooperation between universities and firms, especially KIBS. In this sense, the empirical results dem- onstrate that cooperation between KIBS and universities occurs independent of their location (rural or urban) and typology (professional or technological). The authors furthermore find that rural KIBS have increased their levels of graduate employment faster than their urban KIBS peers. INTRODUCTION Knowledge is the product of universities that thereby contribute towards fostering productivity and innovation, factors fundamental to boost- ing development and regional competitiveness (Martin, 1998; Muller, 2001; Howells & Tether, 2004; Toivonen, 2004; Koch & Stahlecker, 2006; Tolstoy, 2009). The rising number of studies on the importance of entrepreneurship at the regional João J. Ferreira University of Beira Interior (UBI), Portugal Cristina Fernandes Polytechnic Institute of Castelo Branco, Portugal Mário L. Raposo University of Beira Interior (UBI), Portugal