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Enhancing the Performance of the Services Sector

image of Enhancing the Performance of the Services Sector

The services sector now accounts for over 70% of employment and value added in OECD economies. It also accounts for almost all employment growth in the OECD area. But despite its growing weight in OECD economies, productivity growth and employment rates in services remain low in many OECD countries.

This report provides an overview of the role of services in economic performance, and the factors that affect services sector performance. This includes the role of labour and product markets, the impact of barriers to trade in services, the role of innovation in services and the impacts of information and communications technology (ICT) on the services sector. The report also includes a paper presenting case studies of successful services firms, which help illustrate the broader analysis from OECD data.

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ICT Use in Services and the Growth of Digital Content Services

ICT-enabled co-ordination and digital delivery of services are major drivers of service-firm innovation, development and performance. Services’ use of e-business and digital delivery is increasing, and some service sectors are leading in buying and selling over the Internet and in more complex and integrated internal ICT applications that focus on customers and market networks to a greater extent than supply-chain and productionorientated applications common in manufacturing.

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