Structural change and blurred sectoral boundaries: assessing the extent to which knowledge-intensive business services satisfy manufacturing final demand in Western countries

Daria Ciriaci and Daniela Palma

Economic Systems Research, 2016, vol. 28, issue 1, 55-77

Abstract: This paper focuses on the vertical integration of knowledge-intensive business services (KIBS) into manufacturing sectors, using a subsystem approach to input--output analysis. It aims at correctly assessing the process of structural change that has occurred in the four main European countries (France, Germany, Italy and the UK) over time (1995--2005). It does not focus on KIBS sectors per se, but on their function as carriers and sources of knowledge which influences the performance of sectors, value chains and clusters across industries and within countries. The analysis shows that KIBS’ contribution to satisfying the final demand of manufacturing is in general largely underestimated; that KIBS vertical integration into manufacturing has increased over time in all the countries investigated except the UK; and that the extent to which manufacturing sectors outsource to KIBS is significantly affected by their technological intensity.

Date: 2016
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DOI: 10.1080/09535314.2015.1101370

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