Technical change and incorporated R&D in the service sector

The purpose of this article is to study the pattern of technical change in the service sector using an indicator of total technology intensity which takes account of the R&D incorporated in purchases of intermediates and equipment. The service sector does not appear as homogeneous and some services are major users of technology. An international comparison over eight countries does not show a clear pattern of convergence in total technology intensity except for the communication services. A comparison between France and Germany emphasises the differences between the relative importance of domestic and imported incorporated technology. (C) 1998 Elsevier Science B.V. All rights reserved.