Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2010:3: "Servicification of Manufacturing - Evidence from Swedish Firm and Enterprise Group Level Data"

Magnus Lodefalk ()
Additional contact information
Magnus Lodefalk: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden

Abstract: The manufacturing industry in industrialised countries is often argued to servicify - use and sell more services - but knowledge is poor. We examine the phenomenon using detailed and com-prehensive micro level data at both the firm and enterprise group level for Sweden (1997-2006). We find that manufacturing is servicifying substantially. Services and qualified services are increasingly characterising in-house activity in manufacturing. The results imply that treat-ing services and manufacturing separately - for instance in trade policy negotiations - may be inappropriate in industrialised countries. Finally, the findings illustrate the value of enterprise group level data when studying structural economic changes.

Keywords: servicification; manufacturing; deindustrialisation; enterprise group level data; firm data; outsourcing; offshoring

JEL-codes: F14; L16

35 pages, March 24, 2010

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