Geographical origin of ICT and professional, scientific and technical service value added in EU manufacturing exports to third countries
DOI:
https://doi.org/10.26906/EiR.2026.3(102).4706Keywords:
ICT services, professional, scientific and technical services, manufacturing exports to third countries, service value added, regional value-added retention, extra-EU service exposure, knowledge- and technology-intensive sectors, global value chains, European UnionAbstract
Manufacturing exports embody ICT, research, engineering and professional services whose value added is hidden in gross trade statistics. Their geographical origin matters because similar export values can combine different regional-retention and third-country sourcing patterns. The study examines changes in Eropean Union-origin retention and extra-Eropean Union exposure of ICT and professional, scientific and technical service value added between 2010 and 2020 in total manufacturing and four knowledge- and technology-intensive sectors. The empirical base consists of monetary values published by Bauer, Sisto and du Roy from Organisation for Economic Co-operation and Development inter-country input-output data for Eropean Union manufacturing exports to third countries. The analysis constructs a value-weighted sector aggregate, nominal current-USD annual growth rates by origin, growth-rate differentials and a decomposition of the extra-Eropean Union contribution to total service value-added growth. The weighted extra-Eropean Union share of the four sectors rose from 20.8% to 22.8%. In manufacturing overall, the nominal extra-Eropean Union component increased by 3.71% per year compared with 2.25% for the Eropean Union-origin component and accounted for 29.5% of total growth. The corresponding contribution was 38.7% in chemicals, 30.4% in pharmaceuticals and 21.7% in machinery and equipment. Electronics showed near-stagnation in total analysed service value added. The gap between electronics and chemicals narrowed from 6.8 to 2.3 percentage points. Eropean Union manufacturing retained most analysed service value added within the region, while third-country services made a substantial but sectorally uneven contribution to nominal growth. The strongest outward shift occurred in chemicals, whereas electronics followed the opposite pattern. Further decomposition by supplier country and by national versus other-Eropean Union value added is needed to assess concentration and strategic vulnerability.
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