Entrepreneurship, Creativity and Management
Edited by Paul Windrum and Per Koch
Chapter 3: Structure, Size and Reform of the Public Sector in Europe
3. Structure, size and reform of the public sector in Europe Andrés Maroto and Luis Rubalcaba 3.1 INTRODUCTION Dynamic economic growth requires a modern public sector, whose size and performance ﬁt in with the new global boundaries. A competitive economy needs a competitive public sector where both innovation and reform play a major role. This chapter presents data on the main characteristics of public services in Europe and compares these with the USA. The chapter links the types of reform that are ongoing in Europe with the dimensions behind their performance. A particular focus on knowledge-intensive services is provided, within the ongoing direction towards public sector modernization. The ﬁndings highlight the uneven behaviours that result from diﬀerent public sector structures and sizes, and also identify the common needs of modernization. In the era of globalization, competitiveness-related challenges dominate the business and policy worlds. In Europe, objectives that include growth, employment and productivity are essential targets for the development of the Lisbon strategy, announced by the European Commission in 2000 and reformulated in late 2004. Recent European Union (EU) reforms play an important role in innovation policies, as these reforms are predicted to deal with the competitiveness challenges and should help close the gap with the USA, which has enjoyed superior productivity growth over the last ten years. In this context, the role of the public sector is twofold: it continues to represent a major economic sector whose size, structure and activity are fundamental to macroeconomic stability and growth;...
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