This paper reviews and analyses the rationale for an innovation policy in services. It focuses on the relevance of the various categories of market and system failures, on the basis of economic arguments and some empirical evidence at EU level. Results show that market and system failures affect...

Manufacturing firms increasingly produce and provide services along with or instead of their traditional physical products. The goal of this paper is to provide new evidence for this servitisation of European manufacturing and test previous findings based on case studies with a large, firm-level...

The rise of the service economy has been the predominant pattern of structural change in the twentieth century. This article investigates the driving forces behind the recent stages of this development. Focusing on international input—output data from the early 1970s to the 1990s, a...