WP1: Overview of developments in service industries

WP1: Overview of developments in service industries

Objectives: This work package will consider general trends in provision of services in the EU and provide an overview of the key research issues and policy challenges to be analysed in the core workpackages.

 

Main contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

WP leader: Mary O'Mahony (This email address is being protected from spambots. You need JavaScript enabled to view it. )

 

Full details of the workpackage can be found in the description of work, and outputs can be found below.  For further outputs of the project, please see other workackage descriptions, or browse through our Discussion Papers, Review Papers and Policy Briefs.

 

Task 1. Quantitative Overview

This will consist of a general quantitative analysis of performance of the EU service sector. It will include an examination of the output shares of different service industries and of services compared to manufacturing and the size of the market service sector compared to the public service sector. It will undertake an overview of trends in real output growth, productivity and sources of growth in market service industries in the EU compared to the US and other selected OECD countries. It will investigate relative competitiveness by calculating unit labour costs and will analyse trends in employment and in types of workers employed in service sectors.

 

Task 2. Literature reviews

This will consist of reviews of the literature and policy developments in the following areas:

  • Productivity growth and market environment, Technology and service industries
  • Globalisation of service industries

 

Task 3. The Financial crisis and growth

This task will review the existing literature on the financial crisis, the possible consequences and the likely impacts of policies such as greater regulation of banks. It will examine potential impacts on specific service sectors through an analysis of their use of credit.

 

Outputs from this workpackage

"RP6: Service Sector Performance: An introduction to the SERVICEGAP project", Mary O'Mahony

 

"RP5: Internationalisation of Services, Productivity and Economic Growth: Literature Review", Holger Görg (Kiel), Stefanie Haller (ESRI) and Iulia Siedschlag (ESRI)

 

"RP4: Regulation and Economic Performance: Literature Review",Ana Rincon-Aznar, Nikolaus Graf, Iain Paterson, Wolfgang Schwarzbauer, Richard Sellner, Stan Siebert and Canan Yildirim

 

"RP3: The Role of Information Technology For Service Sector Performance", Irene Bertschek, Benjamin Engelstätter, Krzysztof Szczygielski

 

"RP2: Intangible Capital and Productivity Growth: A Literature Review with a Special Focus on the Service Industry", Felix Roth, Anna Thum and Mary O'Mahony

 

"RP1: Linkages between Services and Manufacturing in EU countries", Martin Falk and Elena Jarocinska

 

"DP5: The Banking Sector and Recovery in the EU Economy", Ray Barrell

 

"DP4: The Impact of Financial Stress on Sectoral Productivity: A panel cointegration analysis", Georgios Efthyvoulou

WP2: Productivity and its drivers in service industries

WP2: Productivity and its drivers in service industries

Objectives:


• To consider the extent to which low levels and growth in productivity in the EU relative to the US in market services is driven by lack of investment in intangible assets.
• To examine the changing industrial structure of the EU through an investigation of linkages between manufacturing and services.
• To analyse impacts on performance of the environment in which service industries operate, including the degrees of competition and regulation.

 

Main contact:This email address is being protected from spambots. You need JavaScript enabled to view it.

 

WP leader: Mary O'Mahony (This email address is being protected from spambots. You need JavaScript enabled to view it.)

 

Full details of the workpackage can be found in the description of work, and outputs can be found below.  For further outputs of the project, please see other workackage descriptions, or browse through our Discussion papers, Review papers and Policy briefs.

 

This workpackage consists of five tasks:

Task 1: Growth accounting and macroeconomic modelling

This task will use growth accounting and macroeconomic modelling to examine the sensitivity of results to measurement error from imprecise output measurement and from non-competitive factor remuneration. In addition it will consider the effect of ICT on productivity at the sector level.

Task 2: Intangible investments

This will examine the impacts of intangible investments on growth. This will investigate the extent of investment in intangible assets such as R&D, firm specific training and brand maintenance in the Eu relative to the US. It will analyse whether there exist spillovers from ICT investments and intangibles and will investigate interactions between ICT and intangible investments.

Task 3: Linkages between services and manufacturing

This will analyse intersectoral linkages via trade in intermediates across industries with a view to identifying possible unexploited potentials of the interrelationship between manufacturing and services for European growth and implications for employment. It will undertake analysis separately for purchases of knowledge intensive business services (KIBS) which includes software, R&D activities and business services and investigate the relationship between the ICT intensity and the share of purchased services.

Task 4: Competition and regulation: general analysis

This task will start by characterising the competitive and regulatory environment using existing and new measures. It will then map the channels, systematically analysing the impact of regulation on service sector performance. This will focus on testing whether the measures of regulation detect significant effects on investment, human capital accumulation, innovation, market structure, entry and exit, MFP growth and employment.

Task 5: Competition and regulation: Sector-specific analyses

This task proposes to examine the effects of regulation and the effectiveness of competition in a selected key sector, professional services. In addition this task will include a case study of the impacts of regulation on financial services provided by international banks in east European member states and Turkey.

end faq



Outputs of Workpackage 2

DP1: Workforce Training, Intangible Investments and Productivity in Europe: Evidence from EU KLEMS and the EU LFS

Mary O'Mahony and Fei Peng, University of BIrmingham

 

DP7:The Increasing Service Intensity of European Manufacturing

Martin Falk and Fei Peng

 

DP8:Export performance and increased services content in EU manufacturing

Yvonne Wolfmayr

 

DP9: The impact of service regulation on economic performance in Europe: An industry analysis

Ana Rincón-Aznar and Catherine Robinson

WP3: Firm strategies in the knowledge-based economy

WP3: Firm strategies in the knowledge-based economy

Objectives:
• To investigate external sources of knowledge creation.
• To analyse innovation in the service sector.

 

Main contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

WP leader: Irene Bertschek (This email address is being protected from spambots. You need JavaScript enabled to view it. )

 

Full details of the workpackage can be found in the description of work, and outputs can be found below.  For further outputs of the project, please see other workackage descriptions, or browse through our Discussion Papers, Review Papers and Policy Briefs.

 

This workpackage consists of two tasks:


Task 1: ICT and outsourcing
Task 2: Innovation and productivity in service industries

 

Task 1: ICT and outsourcing
This task will focus on the use of external knowledge by contracting out business service functions and its role for growth and competitiveness of the European economy. It will analyse the role of ICT use as an important determinant of firms' outsourcing decisions. The research will differentiate between manufacturing and services sectors as "users" of outsourcing and thus analyse and compare linkages between manufacturing and services and linkages within service industries. Outsourcing decisions will be related to other firm strategies. In particular, information about firm structures such as human capital, organisational capital, intensity of ICT use will be considered in order to analyse the impacts of outsourcing on productivity, innovation activity and growth

 

Task 2: Innovation and productivity in service industries
This task will provide a detailed analysis of productivity and employment effects of innovation activities in different services industries and countries. The research proposes to identify the main drivers of innovation in services by relating the probability of innovation in services to firm characteristics, and drivers identified in the innovation literature such as human capital, R&D expenditure, ICT investment, linkages with suppliers, customers, universities and public support. Furthermore the research will model the effect of obstacles to innovation such as access to finance, market access and lack of knowledge. Spillover effects from innovation in manufacturing on productivity and growth in services will also be investigated.

WP4: Internationalisation of services and growth

WP4: Internationalisation of services and growth

Objectives:
• To analyse the extent of international trade in services and its effects on productivity and employment.
• To examine the effects of international investment in services on productivity and employment.
• To investigate international outsourcing of services.

 

Main contact:This email address is being protected from spambots. You need JavaScript enabled to view it.

 

WP leader: Iulia Siedschlag (This email address is being protected from spambots. You need JavaScript enabled to view it. )

 

Full details of the workpackage can be found in the description of work, and outputs can be found below.  For further outputs of the project, please see other workackage descriptions, or browse through our Discussion Papers, Review Papers and Policy Briefs.

 

This workpackage consists of four tasks:


Task 1: International trade in services.
Task 2: International investment.
Task 3: International outsourcing of manufacturing and services.
Task 4: Case study on the global value chains.

 

Task 1: International trade in services and its effects on productivity and employment

This research will analyse the extent to which firms in services engage in import and export markets and the effects of international trade on firm productivity and employment in EU countries. It will investigate whether these firms are mostly domestic firms, domestic firms with subsidiaries abroad or largely subsidiaries of foreign-owned multinationals. It will also analyse the extent to which firms with a similar degree of engagement in international trade and international production differ in terms of employment, productivity and labour cost.

 

Task 2: International investment and its effects on productivity and employment
This research will analyse determinants of foreign mergers and acquisitions in services and its effects on firm productivity and employment in EU countries. It will provide empirical evidence on the characteristics of firms in services acquired or merged with foreign owned firms and will examine if whether foreign investors acquire better performing firms. The core of the research will be concerned with whether foreign investment per se has a causal effect on firm productivity and employment growth.

 

Task 3: International outsourcing of manufacturing and services and its effects on productivity, employment and innovation
This research will provide a comprehensive analysis of determinants of international outsourcing of services and its effects on firm productivity, employment and innovation in EU countries. It will provide empirical evidence on the following the characteristics of firms that engage in international outsourcing before trying to establish causal links between outsourcing and performance.


Task 4: Case study on the global value chains
This case study will analyse the impact of UK retailers on suppliers from abroad, in particular from transition and developing countries. In particular, it will examine the impact retailers have on the quality of products and the influence of consumers' demands on this, e.g. the increased demand by consumers for traceability in food retailing. This task will first review the literature on global value chains and will then undertake semi-structured interviews with UK retailers on their relationships with foreign suppliers.

Additional information