Factor Competitiveness of the Technological Advanced Services Sector in the European Union Countries: A Typological Analysis

Abstract

Purpose:The article presents a significant and current research problem concerning the competitiveness of the technologically advanced services sector. The research aimed to assess the diversity of this phenomenon in the EU Member States and make a typology of Member States based on partial competitiveness indicators. Design/Methodology/Approach: The study uses a universal model of factor competitivenessthe adopted indicators can also be used to assess other sectors of the economy. Typological classification of EU Member States was made using Ward's cluster analysis. Findings: Several countries shape the level of competitiveness of the high-tech services sector in the EU. The first group comprises France, Germany, Spain, the Netherlands, and Italy -it is characterized by a high level of production potential and factor competitiveness indicators. The second group comprises countries with low production potential but with the highest competitiveness indicators among the EU countries. These are Luxembourg, Cyprus, and Malta. Practical Implications: The typology of EU countries in terms of the production potential and competitiveness of the high-tech services sector is a source of information that can shape regional development policies of this sector in individual EU countries. The increasing importance of knowledge-based services in economic development, which includes the studied sector, is a crucial application value of the study. Originality/Value: The level of competitiveness of the technologically advanced services sector and the factors shaping it is a critical issue both in EU policy and in the development of individual countries. Research on the high-tech sector focuses mainly on manufacturing companies (high-tech industry), and to a much lesser extent, on service companies (high-tech services). The considerations contained in the article fill the research gap in this area.