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Convergence of Knowledge-intensive Sectors and the EU's External Competitiveness

Author

Listed:
  • Sabine Biege
  • Martin Borowiecki
  • Bernhard Dachs
  • Joseph F. Francois

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Doris Hanzl-Weiss

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Johan Hauknes
  • Angela Jäger
  • Mark S. Knell
  • Gunter Lay
  • Olga Pindyuk

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Doris Schartinger
  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The share of knowledge-intensive services and products in total output and demand and in the production of advanced, but also less advanced or emerging economies, has steadily increased over time and especially so for the knowledge-intensive services. This ‘quaternization’ of the economies not only points towards the rising shares of services but also stresses the role of knowledge-intensive services and their growing importance as sources of innovation and technology and as inputs into the manufacturing process. First the study documents the important role played by services in the EU as compared to the USA and Japan. Special emphasis is given to the role of knowledge-intensive business services (KIBS). The study then stresses the role of service output of manufacturing firms, a phenomenon also termed ‘convergence process’ which so far has not received much attention in the existing literature. Further it analyses the role of knowledge-intensive business services (KIBS) with respect to their role of embodied knowledge flows and linkages between KIBS and manufacturing sectors, underpinning that services have been playing an increasing role in boosting the productivity of manufacturing sectors. Finally, the study focuses on the importance of trade in knowledge-intensive manufacturing and services (overall and KIBS in particular) regarding the competitiveness of the EU with respect to trade in services in general and trade in knowledge-intensive business services in particular.

Suggested Citation

  • Sabine Biege & Martin Borowiecki & Bernhard Dachs & Joseph F. Francois & Doris Hanzl-Weiss & Johan Hauknes & Angela Jäger & Mark S. Knell & Gunter Lay & Olga Pindyuk & Doris Schartinger & Robert Stehr, 2012. "Convergence of Knowledge-intensive Sectors and the EU's External Competitiveness," wiiw Research Reports 377, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:rpaper:rr:377
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    Citations

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    Cited by:

    1. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2014. "Thinking in a box: A ‘mode 5’ approach to service trade," DG TRADE Chief Economist Notes 2014-1, Directorate General for Trade, European Commission.
    2. Irene Fafaliou & Michael Polemis, 2013. "Competitiveness of the Euro Zone Manufacturing: A Panel Data Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(1), pages 45-61, February.
    3. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
    4. Andrea Elteto & Andrea Szalavetz & Gabor Tury & Aniko Magashazi, 2015. "Upgrading of Hungarian subsidiaries in machinery and automotive global value chains," IWE Working Papers 217, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
    5. repec:kap:iaecre:v:19:y:2013:i:1:p:45-61 is not listed on IDEAS

    More about this item

    Keywords

    knowledge intensive sectors; trade in services; service provision of manufacturing firms; inter-sectoral linkages;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L8 - Industrial Organization - - Industry Studies: Services
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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