The November 2013 Paper on 'The Servitization of Germany: An International Comparison' by Andy Neely

This paper presents data on the range and extent of servitization globally, contrasting levels in Germany with France, UK, US, as well as the BRIC countries - Brazil, Russia, India and China. 

Servitization is a global phenomenon. This paper presents data on the range and extent of servitization globally, contrasting levels in Germany with France, UK, US, as well as the BRIC countries - Brazil, Russia, India and China. The analysis is performed using a sample of over 42,000 firms. The paper explores the reasons why firms are servitizing, categorizing these drivers in terms of: (i) strategic; (ii) economic; (iii) technological and (iv) environmental. It presents data on the German economy, illustrating the range and extent of services offered by German firms and looks at the data on the German firms, contrasting them with data from other European countries as well as data on the US economy to enable international comparison. The paper then introduces data from the BRIC countries to illustrate emerging competitive challenges, and finally turns to the question of the future, asking what role services might play in the future of German manufacturing success. The paper will be of interest to those keen to understand more about the latest international developments and the extent of servitization across the world.

[paper]