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STRUCTURAL CHANGES AND GROWTH IN EUROPE: ARE KNOWLEDGE-INTENSIVE SERVICES CHANGING PARADIGM OF EXPANSION OF SERVICES AS A LONG-TERM GROWTH-DIMINISHING FACTOR?

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Bacovic M., Andrijasevic Z., Cerovic Smolovic J.
Ekonomický časopis (Journal of Economics)
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2022
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vol. 70
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issue 2
124 – 143
EN
We explored the patterns of structural changes in Europe and found growing relevance of the service sector, particularly knowledge-intensive services. The study shows that labour productivity and TFP growth were lower in the service sector than in the goods sector but were higher in knowledge-intensive services than in other services. GDP per capita growth is positively related to the output’s share of knowledge-intensive services as well as GDP growth and TFP growth in high-income countries, but not in medium-income economies. This might be explained by the rapid growth in the earlier stages of development in less-developed countries and its subsequent slowdown. Although knowledge-intensive services are the fastest growing sector in all countries, industry is still the most relevant sector for long-term growth, with the highest TFP and labour productivity growth. The growing knowledge-intensive services sector, with its higher TFP growth than other services, partially overcomes the negative effects of expansion of the service sector on long-term output growth. This study shows that R&D investment growth leads to significantly higher output growth in knowledge-intensive services than in other sectors, which may be used as a relevant policy tool.
2

CHARAKTER A INTENZITA INOVAČNEJ AKTIVITY V SLUŽBÁCH V SLOVENSKEJ REPUBLIKE A JEJ EKONOMICKÝ VÝZNAM

100%
Kubičková V., Benešová D.
Ekonomický časopis (Journal of Economics)
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2011
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vol. 59
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issue 4
412 – 427
EN
Abstract: Many analysis and studies confirm that there are differences subsequently disappear between technology and non-technology innovation character, by ICT introducing are the products innovated, processes and organization structure of the service enterprises. Many factors effect on the character and innovation activity intensity in the services. Initial platform is the implementation of the innovation on the macro-level supported by the state policy. Slovak republic in European context queues into the countries with the non-adequate pursued innovation policy in practice. Service sector heterogeneity included knowledge-intensive services as well as less sophisticated services targeted on the knowledge is the next factor that influences on the innovation activity of the services. Therefore it is important to identify the key areas of innovation implementation according to individual section production character of the services, in conformity with the business strategy and with the acceptation of the specific service properties.
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