More competition in business services industry will improve productivity growth

The business services industry has become an important sector in the Dutch economy. This is caused by its size, its dynamics, and its role in improving productivity of its clients.

The business services industry in the Netherlands has grown faster than in other OECD countries. In employment terms, it is almost as big as the Dutch manufacturing industry.

Two issues for concern are the hardly improving labour productivity of the business industry, and the relatively low innovation expenditures of the industry. Remedying both problems can be done, inter alia, by encouraging foreign competition, and by enhancing market transparency.

These findings emerge from the Special CPB Publication Â'Growth challenges for the Dutch business services industry: international comparison and policy issuesÂ', to be released today. The report analyses the growth factors and growth perspectives of the business services industry.

Through international benchmarking, the study assesses strengths and weaknesses of Dutch business services industry. The report concludes with policy options for strengthening the contribution of the business services industry to the Dutch economy as a whole.

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(source: CPB)

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