Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation

The paper presents a new sectoral taxonomy that combines manufacturing and service industries within the same general framework. This exercise is relevant because it seeks to achieve a greater integration between the study of sectoral patterns of innovation in manufacturing and services, and to point out 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. This empirical evidence, which presents fresh results from the Fourth Community Innovation Survey, supports the relevance of the taxonomy by showing the great variety of sectoral patterns of innovation in European industries.