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Über dieses Buch

Empirical and theoretical evidence on the German service sector is inversely related to its growing overall importance for the entire economy. This monograph offers a comprehensive theory-based econometric treatment of three important and severely understudied issues related to services: innovative activity, the effects of innovation on the demand for labour, and the performance of newly founded firms. In addition, the book contains detailed descriptive statistics on innovative activity, skill mix as well as on growth and current economic importance. It offers researchers, policy makers, and practitioners a unique opportunity to gain knowledge on the new German service economy.

Inhaltsverzeichnis

Frontmatter

1. Preliminary remarks

Abstract
There has recently been much talk in the economic policy and the economics profession about the growing German service sector. Economic policy is particularly interested in the service sector since it is hoped that this dynamic part of the economy will help to overcome Germany’s most pressing current economic problem: the persistently high rate of unemployment. Some economists in fact share the optimism of German economic policy and claim that the service sector is “fuel to the job engine” (Institut der deutschen Wirtschaft 1999).
Ulric Kaiser

2. The anatomy of the German service sector

Abstract
While economic policy makers and economists are quite vocal in praising the growth and overall economic importance of the service sector, its innovativeness and its large number of firm foundations, they often fail to provide the audience with actual figures on the service sector. This chapter gathers information from various statistics concerned with the service sector to offer data on some key topics often raised in economic policy.
Ulric Kaiser

3. Research and research organization

Abstract
Section 2.3 in the preceding chapter has shown that services are fairly similar to manufacturing industries in terms of the proportion of innovating firms. Differences arise, however, if innovation intensity or the formation of RJVs are considered instead. It seems likely that knowledge spillovers that arise in a firm’s innovation process might help to explain these differences in innovation intensity between manufacturing and services. Knowledge generated in the innovation process of a service sector firm is often bound to tacit knowledge only since codification of service sector innovation is unfeasible in many cases (Amable and Palombarini 1998), a finding that is reflected by the service sector’s comparatively low propensity to patent innovations. Tacit knowledge is, however, the main source of knowledge spillovers since tacit knowledge is a “capacity that is embodied in the brain” of workers (Nightingale 1998, p. 689) and hence more easily absorbed by competing firms than knowledge that is codified in patents or retrieved by ‘inventing around’. Spillovers therefore might play an even more important role in a service sector firm’s decision to invest in research or to form a research joint venture than in a manufacturing firm’s decision. Empirical evidence on the effects of spillovers on research investment and on the organization of research by service sector firms is still scarce, so this chapter aims at providing empirical evidence on the determinants of research expenditures and RJV formation for the German service sector within a game-theoretical framework for research efforts and joint venture formation.
Ulric Kaiser

4. New technologies, wages and employment

Abstract
What are the consequences of innovative activity on the demand for labor and on wages? While economists have been quite active in theoretically and empirically describing innovative activity, the empirical literature concerned with the differentiated effects of new technologies on the demand for heterogeneous labor and on wages is quite recent. Moreover, just as it was the case for studies on research and research organization, most scholars analyze manufacturing industries and leave out services, although the service sector usually is the most promising part of developed economies in terms of employment gains.
Ulric Kaiser

5. Financial distress of newly founded service sector firms

Abstract
An even more obvious source of unemployment than technological progress is the exit of incumbent firms. According to Schumpeter’s (1943) notion of ‘creative destruction’, the turnover of firms is closely related to technological progress: Newly founded firms enter the market with new and innovative products. They replace incumbent firms and are eventually substituted themselves by innovative entrants.
Ulric Kaiser

6. Summary and conclusions

Abstract
The service sector is probably the most interesting part of the German economy to study. Services have exhibited considerable economic growth and account for large employment gains As a consequence, the service sector receives heightened economic policy and media attention. The public attention is, however, somewhat inversely related to economic evidence on the way labor markets work in the service sector, research and research organization and the determinants of the success of service sector’s firms. This monograph provides insight into these issues.
Ulric Kaiser

Backmatter

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