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The Factory-Free EconomyOutsourcing, Servitization, and the Future of Industry$
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Lionel Fontagné and Ann Harrison

Print publication date: 2017

Print ISBN-13: 9780198779162

Published to Oxford Scholarship Online: April 2017

DOI: 10.1093/acprof:oso/9780198779162.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 17 January 2022

The Servitization of French Manufacturing Firms

The Servitization of French Manufacturing Firms

(p.111) 4 The Servitization of French Manufacturing Firms
The Factory-Free Economy

Matthieu Crozet

Emmanuel Milet

Oxford University Press

In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, increasing returns, new consumption items increasingly affordable to the consumer, many services could compare with industries. And even within manufacturing industry in the usual sense, services represent an increasing share of the value added. This shift towards services within the manufacturing sector is characterized as the `servitization' of the manufacturing sector. Using French business statistics, they describe this servitization of manufacturing firms. They document a moderate, but significant and steady trend of servitization over the period and find that the phenomenon is mainly driven by changes that occur within firms. By the end of their sample period, they document that 83% of manufacturing firms sold some services, 40% sold more services than goods, and 26% did not even produce goods.

Keywords:   Servitization, de-industrialization, manufacturing firms, business statistics, value added

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