Abstract
This study empirically investigates the impact of productive service agglomeration on manufacturing servitization and the heterogeneity of this impact. We found that (1) the productive service industry's agglomeration facilitates manufacturing servitization with a heterogeneous feature. Furthermore, (2) agglomeration of the private productive service sector is more conducive to promoting manufacturing servitization than the state-owned productive service sector. Finally, (3) the agglomeration of labor- and capital-intensive productive service industries has a more pronounced role in boosting manufacturing servitization. These findings contribute to optimizing industrial upgrade policies and corporate servitization strategies.
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