Contrasting services with manufacturing - The importance of services
3 important questions on Contrasting services with manufacturing - The importance of services
How do economies mature?
Developing countries are dependent on agriculture and it typically generates in the order of 20% of GDP. As countries develop, they first industrialize, as the demand for food is satisfied and demand for industrialized goods rises. Later, post-industrialization sees a shift, as the demand for tangible products saturates and people start to focus on services, such as healthcare, education and entertainment.
How do services and R&D relate?
In the service sector, it should be noted that the revenues invested in R&D (termed R&D intensity) are not always easy to identify, as formal R&D departments with separate budgets seldom exist in the service sector.
R&D in the service sector is more difficult to manage than in manufacturing because few companies know how to apply technology effectively to services and due to the lack of personnel who understand both technology and business opportunities in the service environment.
Why do manufacturers need services?
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