A Study of the Impact of Service Sector Innovation and Internationalisation on Growth and Productivity (SERVICEGAP)

Authors: Iulia Siedschlag , Frances Ruane , Stefanie Haller , Gavin Murphy , John McQuinn , Xiaoheng Zhang

Research Areas: Internationalisation and Competitiveness

The performance of service industries has come to the forefront of research and policy debate on Europe?s comparative economic performance. While there is a vast literature on the importance of service industries in understanding aggregate economic growth, to date there still remains a lack of solid empirical evidence to delineate the main channels through which services affect growth and their quantitative importance. This research project will provide a comprehensive empirical analysis of recent trends and developments in service industries and their contribution to economic growth in Europe in comparison to other industrialised countries such as the US. The analysis will focus on three research areas: ? Productivity and its drivers in service industries ? Firm strategies in the knowledge-based economy ? Internationalisation of service industries and growth The results of this research will advance the knowledge base that underpins the formulation and implementation measures fostering growth-enhancing investment in knowledge and human capital in service industries and service functions in other sectors. They will also enhance the understanding of business potentials in the service sector by adopting a comparative perspective across industries and countries and analysing obstacles to innovation and internationalisation, with particular attention paid to knowledge-intensive services. This research project, SERVICEGAP, with a duration of three years started on 1 March 2010 and it is funded under the EU RTD 7th Framework Programme. The ESRI research team is part of an European Research Consortium of leading universities and research institutes. Iulia Siedschlag is joint scientific co-ordinator together with Mary O?Mahony (University of Birmingham) and Irene Bertschek (Centre for European Economic Research, Mannheim) and leads the research on the internationalisation of services and growth. For more information see the SERVICEGAP website.

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