Antecedents and implications of territorial servitization

This 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.