Abstract

ABSTRACTThis paper examines the key antecedents and implications of territorial servitization in Central Europe and the Mediterranean. Territorial servitization is analyzed using 17 Spanish and 38 German NUTS-2 regions during the period 2010–14. The results indicate that, in terms of market size and economic activity, territorial servitization is significantly higher in regions with more knowledge-intensive business services (KIBS) deepening and where air and maritime transport have positive effects on territorial servitization. Interestingly, while the results confirm a positive relationship between patents and territorial servitization, patents show decreasing returns. Important implications for research, firms and policy-makers are discussed.

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