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Growth challenges for the business services industry - international comparison and policy issues

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  • Henk L.M. Kox

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This report summarises the findings of a study on the growth factors and growth prospects of the business services (BS)industry, applying an internationally comparative perspective. The report untangles factors behind the extraordinary growth of the BS industry during last decade,comparing it with other market industries.It analyses how the growth pattern is affected by product differentiation and the structure of competition.The study analyses the role of business services in inter-industry relations and in national innovation systems. The study also analyses the factors behind this industry's poor productivity growth. A scenario analysis is applied to sketch future growth patterns of business services industry up to 2010. The report finally identifies future-oriented policy issues,after identifying the dominant market failure problems with regard to the BS industry.

Suggested Citation

  • Henk L.M. Kox, 2003. "Growth challenges for the business services industry - international comparison and policy issues," Industrial Organization 0309003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0309003
    Note: Type of Document - adobe PDF; pages: 178 ; figures: included
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    References listed on IDEAS

    as
    1. Henry van der Wiel, 2001. "Does ICT boost Dutch productivity growth?," CPB Document 16, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Windrum, Paul & Tomlinson, Mark, 1999. "Knowledge-intensive services and international competitiveness: a four country comparison," Research Memorandum 023, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    4. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    business services; productivity growth; innovation; market structure; policy;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L8 - Industrial Organization - - Industry Studies: Services
    • D2 - Microeconomics - - Production and Organizations
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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