Servitization across Countries and Sectors: Evidence from World Input-Output Data
WIFO Working Papers, 2021, (637), 41 pages
Commissioned by: European Commission-Framework Programme
Study by: Austrian Institute of Economic Research – Statistics Netherlands – Istituto Nazionale di Statistica – Lunaria Associazione di Promozione Sociale e Impresa Sociale – United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology – Fondation Nationale des Sciences Politiques – Scuola superiore Sant'Anna – Statistics Austria – University College London – University of Bielefeld – University of Ljubljana – University of Tartu – Centre for European Economic Research – Katholieke Universiteit Leuven (Belgium)
We use the supply tables that underlie WIOT data to explore the provision of services by manufacturing sectors. The value-added
shares generated by services differ substantially across countries and sectors, while they remain largely stable over time.
A Bayesian classification assigns broadly defined manufacturing sectors to economy-wide growth models. It differentiates between
service- and manufacturing driven models in catching up and developed economies. Servitization increase with labour productivity.
The service intensities in the sectoral production mix are lower in countries with higher manufacturing shares. This holds
for both catching up and developed economies. However, servitization is largely unrelated to productivity and employment growth.
Hence, we argue that the degree of servitization is contingent on and an attribute of the respective economic model in which
a sector operates.
JEL-Codes:L60, P51, O14
Keywords:Servitiziation, employment, productivity, latent class analysis, WIOD
Research group:Industrial Economics, Innovation and International Competition