The relative weight of manufacturing and services in Europe: an innovation perspective on structural change ⁄

This paper uses an innovation-based taxonomy of both manufacturing and service industries to assess the role of difierent industries in the process of structural change of the last 25 years in Europe. The empirical analysis exploits the shift-share methodology for a decomposition of aggregate labor productivity growth. A modifled 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 difierent industries play according to the innovation taxonomy.

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