Publication

This paper presents a sectoral taxonomy that combines manufacturing and service industries within the same general framework. It underlines the increasing importance of vertical linkages and inter-sectoral knowledge exchanges between these interrelated branches of the economy. The empirical relevance of the new taxonomy is illustrated with reference to the innovative activities and economic performance of manufacturing and service industries in Europe. The tests support the relevance of the taxonomy by showing the great variety of sectoral patterns of innovation in European industries.