The paper provides a review of and presents some empirical evidence on the dynamics of knowledge, structural change and spatial concentration of economic activities, focusing on the case of business services (BS). It explores how the role of knowledge has evolved in relation to the dimensions of: (i) science, technology and structural change; (ii) the long-term processes of tertiarization of the economy – in particular the growth of BS; (iii) the spatial concentration of BS as an outcome of the increasing volume and complexity of knowledge and the need to manage it through spatial proximity. Our arguments are supported by empirical evidence on the spatial concentration of BS in the European regions.