The increasing service intensity of European manufacturing

Martin Falk · Fei Peng

60 citations0/0 files storedService Industries Journal

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Global trade and economics Labor market dynamics and wage inequality Service and Product Innovation

Abstract

In this study, using fixed-effects models based on the manufacturing sector for 18 European Union countries for the period 1995–2008, we find that the employment share of service occupations is significantly and positively related to the output share of producer services in manufacturing. In particular, the increase in the output share of services accounts for an average of 13% of the increase in the share of service occupations. When service occupations are disaggregated by different categories, we find that the output share of services is significantly and positively related to the share of managers, professionals, and technicians. In contrast, the remaining service occupations do not benefit from the increase in service revenues. Finally, professionals and technicians are complementary to purchased services (from either domestic or foreign suppliers).

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References

1991Firm Resources and Sustained Competitive Advantage 1998Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data 1988Servitization of business: Adding value by adding services 2009The servitization of manufacturing 2008Exploring the financial consequences of the servitization of manufacturing 2008Effect of Service Transition Strategies on Firm Value 2009Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database 2005Knowledge intensive business services: prospects and policies

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