Service Sector Performance and its contributions to the Europe 2020 strategy: Results and policy implications arising from the SERVICEGAP and INDICSER projects

This workshop was held at CEPS, Brussels, on 29 and 30 January 2013

Descriptions of the presentations, with links to the slides, can be found below.  The full programme can be downloaded here

Session I - Research Summaries and Policy Implications

‘Determinants and Impacts of Innovation: Difference between Services and Manufacturing Firms’, Irene Bertschek (ZEW)

This summarises the project research on innovation strategies by firms, including outsourcing of ICT and presents differences between manufacturing and services firms. It highlights the implications for the Europe 2020 strategy on smart and inclusive growth, especially as regards innovation policy.

Internationalisation of Services and Enterprise Performance: Key Empirical Evidence and Policy Implications for Europe 2020, Iulia Siedschlag (ESRI)

This paper summarises the project’s key findings on the effects of internationalisation of services on enterprise productivity and employment. Further, it highlights similarities and differences with manufacturing. Finally, it discusses policy implications in the context of the EU’s Strategy for Smart, Inclusive and Sustainable Growth

Session IIa - Research Papers on Innovation and links between manufacturing and services

‘The Influence of Technological and Non-Technological Innovation on Employment Growth in European Service Firms’ Bettina Peters (ZEW), Rebecca Riley (NIESR) and Iulia Siedschlag (ESRI)

This paper investigates the employment impacts of innovation, distinguishing product and process innovations and organisational changes. The results demonstrate that product innovation is conducive to employment growth in European service firms suggesting a role for policy in creating an innovation-friendly environment for service firms as well as for manufacturing.

‘Linkages between services and manufacturing in EU countries’ Martin Falk (WIFO).

This research focuses on both the use of services as inputs in manufacturing and the services content of manufacturing output. It highlights the fact that the distinction between manufacturing and services has become more blurred over time and the implications of this for services sector policy frameworks such as the single market.

Session IIb - Research papers on International trade and International investment in Services

‘A portrait of trading firms in the services sectors: Comparable evidence from four EU countries’, Stefanie Haller (ESRI)

This paper sets outs some stylised facts on service sector firms engaged in trade - both exporting and importing. It documents in detail the characteristics of the firms that trade, how important foreign markets are for these firms and what service sector firms trade. The paper further compares the patterns of trade by service sector firms to those of manufacturing firms. Finally, it discusses implications for trade policy.

‘Offshoring, domestic outsourcing and productivity: evidence for a number of European countries’, Tillman Schwörer (IfW)

This study provides novel empirical evidence on offshoring patterns in Europe comparing services and manufacturing. It draws out implications for long run productivity gains which have the potential to raise employment through enhancing global competitiveness.

Session IIIa - Research Output

‘The research output of European Universities, 1996-2010’, Jose Manuel Pastor, Lorenzo Serrano and Irene Zaera (IVIE)

This paper examines the scientific output of universities in the EU, using both quantity measures and adjusting for the quality of output based on citations, and how this has changed through time. This shows significant diversity across countries but with some convergence through time.

‘Outsourcing and offshoring R&D in the pharmaceutical industry: Implications for firms and countries’, Paulina Ramirez, University of Birmingham

Using case study interviews this research highlights the recent offshoring of R&D labs from European countries to emerging countries such as India and draws implications for policies related to scientific research

Session IIIb - Regulation of Services

‘Providing Service Across Borders: Tracing, understanding and measuring market access barriers’ Jacques Pelkmans and Federica Mustilli The aim of the paper is to provide a detailed overview of the barriers to services market access, their restrictiveness, economic meaning and progress through time. It draws out the need to distinguish the GATS environment from the intra-EU services regime.

‘Professional and Business Services in the EU: Linkages and Regulation’. Iain Paterson and Richard Sellner (IHS)

This research produces new measures of linkages between business services and other sectors and regulation of professional services. It suggests some modest decrease in anti-competitive regulation in professional services, mainly with respect to market conduct behaviour: more openness to new forms of businesses, price setting, fees and advertising.

Session IV - Overview of Research Results

‘Productivity and its Drivers in Service Industries’, Mary O’Mahony (University of Birmingham)

This presents an overview of the research results from both INDICSER and SERVICEGAP focusing especially on the varying use of intangible investments in services relative to manufacturing. It highlights areas of relevance of the research to the Europe 2020 strategy, in particular relating to education and training and their impact on smart growth.

‘The INDICSER database: Overview of variables, country and time coverage and compatibility with EU KLEMS’. Mary O’Mahony (University of Birmingham)

This will go through the data series on innovation, intangible investments, market environment and regulation at industry level generated by the INDICSER project and the series for particular sectors, financial services, education and health.


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