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Internationalization, Technology and Services

Edited by Marcela Miozzo and Ian Miles

This book examines the way in which the increasing internationalization of services, including the operation of multinationals in this sector, interacts with the process of innovation in services. The book challenges the theoretical traditions that have developed around the analysis of service innovation and internationalization, and argues for a new research agenda. The distinguished contributors address many of the most pertinent issues and adopt a variety of theoretical and empirical approaches to enrich the debates.
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Chapter 3: The Internationalization of European Services: What Can Data on International Services Transactions Tell Us?

Paul Baker, Marcela Miozzo and Ian Miles


Paul Baker, with Marcela Miozzo and Ian Miles INTRODUCTION This chapter examines the trends and patterns in trade and foreign direct investment (FDI) among services in the European Union (EU).1 The continuing liberalization of services, the creation of the EU internal market and, more recently, the introduction of the single currency are adding to the pressures restructuring service sectors. Around the world, the competitive environment for service firms is changing. As barriers to cross-border trade and foreign investment are reduced, firms can compete in wider markets, outside their home location. With growing market size, the possibilities for economies of scale and scope also grow. Combined with the internationalization of client industries, these changes are resulting in growth in services trade and investment on a world scale. These developments in the international environment, together with the important developments in new information and communication technologies, suggest an intensification in the process of internationalization of services. But so far neither the mechanisms by which this is achieved nor the approaches adopted by individual firms have been explored in detail. This chapter examines the available statistical evidence on international services transactions. The first section describes the developments underlining the increasing internationalization of services. The second section classifies the different types of international services transactions and the available data sources. The third section explores the implications of internationalization of services for growth and competitiveness. The fourth section analyses the importance and evidence of trade in services. The fifth 59 60 Technology,...

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