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EU KLEMS Project

EU KLEMS Working Paper Series

No. 35

Carolina Castaldi (2008) The relative weight of manufacturing and services in Europe: an innovation perspective, (January 14, 2008)


This paper uses an innovation-based taxonomy of both manufacturing and service industries to assess the role of the process of structural change of the last 25 years on the rate of growth in Europe, US and Japan. The empirical analysis exploits the shift-share methodology for a decomposition of aggregate labor productivity growth. A modified version is applied, that allows to interpret whether employment has shifted to higher or lower productivity sectors. The results are discussed in light of the role that the different industries play according to an innovation-based taxonomy.

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This project is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".

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Last changed on: September 12 2008