Comparative Analysis of Servitization in European Union Countries Using Hellwig’s Synthetic Measure of Development

The purpose of this paper is to evaluate and compare the degree of servitization of the economies of European Union countries and to assess the importance of servitization for sustainable development. This study used Eurostat data from the years 2000 and 2023. Using Hellwig’s synthetic measure of development, four groups of countries differing in the degree of servitization in each of the years studied were created and then compared in the context of the differences between them, including population density, the share of the service sector in employment and gross value-added creation, and the level of gross value added created by the service sector per capita. The results showed that a high degree of servitization characterizes mainly the rich countries of the EU-15, while a lower one applies mainly to the countries of Central and Eastern Europe. The service sector increased its share in employment, structure, and gross value-added creation during the period under review. High population density was also a factor conducive to the development of services, but its increase did not always coexist with an increase in the degree of servitization of the economy. Servitization drives development and facilitates optimal use of resources. However, high levels of servitization are not always reflected in good values of sustainable development. Servitization processes can be stimulated by adequate economic development policies, but the methods and actions taken in this regard should be adapted to the level of economic development and the specifics of each country.