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Index A Accounting services, 69 Air transport cargo, 9, 160-166 Federal Express, 161- 163 regulation, 163-166 foreign access to cabotage, 230 passenger service data base use, 37-38 international competition, 41 American Airlines, 37-38 American Express Company, 202, 208 American Productivity Center, 99-100, 104, 117 AMRIS, 38 Antitrust, 37, 111, 115, 224 ATOM, 221 Automation, 76-78 see also Computer hardware and software Automobile industry, 34-35, 38, 216 B Balance of trade/payments, 38-40 developing countries, 225 Japan, 188 U.S., 116, 169, 173, 217 BanCal Tristate, 201 Banking electronic in Britain, 38 239 international, 173, 176- 177 Japanese international position, 43, 188-189, 200-203, 208 productivity measures, 150- 151 Bank for International Settlements, 225 Bank of California, 201 Bank of China, 202 Bank of Tokyo, 201 Barclays Bank, 203 Barras, R., 23-24 Bell, S., 233 Brady Commission, 224-225 Britain, see United Kingdom Brookings Institution, 112 Budget deficit (U.S.), 112, 209 Bureau of Economic Analysis, 74 Gross product originating, 2 Bureau of Labor Statistics employment trends, 30-31, 48-58, 61 Producer Price Index, 74 productivity measurement, 9, 23, 105, 139-158 (passim) Business services classification for statistics, 93-96 computer use, 132 international, 174 manufacturing industry, interrelationship, 82-91 productivity of, 153

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240 C California First Bank, 201 Canada, 209 Capacity utilization, 107, 108, 109 Capital investment accumulation in services sector, 119-125 computers, 132-133, 196 cost factors, 209-210, 212 government budget for, 114 information technology, general, 118- 119, 121- 125, 196; by services sector, 125-132 intensity in services sector, 21, 25, 32, 129-133 national and international markets, 36 productivity factor, 106, 107, 108 tax incentives, 111-112, 116, 219, 220, 231 Cargo, see Air transport: cargo; Freight transport Case study method, 1, 99- 100, 117, 231 Catalytic converters, 142 Chandler, Alfred, 5 Chips (computer memory), see Semiconductors Citicorp, 38, 221 Classifications business services, captive production, 93-96 diagnostic categories, health care, 153-154 economic data bases, 232-233 financial services, 199 freight, 161 household production and purchases, 96-97 international services trade, 173-175 occupational, 61, 64, 134 services industries defined, 18, 47, 48, 70, 71-72, 74, 76-78, 140-143, 167-168, 173-175 Standard Industrial Classification, 23, 47, 66, 93, 94, 95, 145 Clearing House Automated Payment System (CHAPS), 38 Clearing House of International Payments (CHIPS), 35 Clerical workers, in manufacturing, 62-66, 67-68 Committee on Science, Engineering, and Public Policy, 4-5 INDEX Communications, 32, 160 global trade in services and, 10, 43 information technology and, 129- 131, 133 international trade and, 180 manufacturing industry, interrelationship, 82-92 productivity measures, 147 telephone industry, 147, 221 Compensation, see Salaries and wages Competition, 6, 37 antitrust, 37, 111, 115, 224 dumping (trade), 192, 193, 196- 197, 202-203 global, 11- 12, 35-36, 38-42, 167- 184 Japanese strategy, financial services, 203-210 general, 191-192 information technology, 192- 198 technology and, 26-27, 118- 138, 223 see also Regulation/deregulation Computer hardware and software, 32, 135-137 capital investment by services sector, 132-133 data bases, 37-38, 232-233 economies of scale in information, 69 educational software, 113 Japanese global strategy, 192-198 securities trading via, 27, 224 software copyrights, 223-224 software productivity data, 157-158 Consumer Price Index, 151 Consumers and consumption by services sector, 78-82 tax on, 112 Continental Illinois, 201 Contracts and contracting, unbundling of manufacturing/services, 61, 69 Copyright, see Intellectual property Corporate services, 69 COSMOS II, 221 Credit cards, 202 Current Employment Survey (CES), 74, 143-144 Current Population Survey (CPS), 68, 74, 143, 145 Customs formalities (trade), 165 D Data bases, 37-38, 232-233 Defense industries, 43, 228

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INDEX Deindustrialization, 1-5 Demand, see Supply/demand Denison, E. F., 106- 108 Department of Commerce, 2, 74, 164 Department of Health and Human Services, 154 Department of Housing and Urban Development, 151 Department of Justice, 111, 115 Department of Labor, 113, 114 Department of State, 164 Department of Transportation, 164 Deregulation, see Regulation/deregulation Developing countries, 225 Dialog Information Services, 37 Doorley, Thomas L., 12- 13, 211 -234 Dresdner Bank, 202 Duchin, Faye, 6-7, 76-98, 168 Dumping (trade), 192, 193, 196-197, 202-203 E Economies of scale, 26-27, 42, 116, 214 information services, 69 productivity factor, 107, 108, 109 Economies of scope, 26-27 Education and training federal role, 112-113, 116 job educational content, 51-54, 73-74, 116, 145, 168, 220, 227-228, 231, 232 productivity factor, 106- 107, 112 scientific education, 111 Efficiency issues, 168 labor, 113-114 productivity factor, 107 regulation and, 223-225 small-scale operations, 37 see also Productivity and production Employment and unemployment clerical workers, 62-66, 67 educational requirements and content, 51-54, 73-74, 116, 145, 168, 220, 227-228, 231, 232 future trends, 28-30 GNP and, 58-60, 62, 73, 109, 112 growth and, 47-74 managerial occupations, 62-63, 66-67 manufacturing, services employment in, 28-30, 62-68 minorities, 55-56 241 by occupational category, 52, 53, 57, 63, 65 Occupational Employment Statistics (OES), 61, 64, 74 part-time workers, 30 producer services, 6, 57-60, 74 professional and technical workers, 62-63, 65, 66-67 recession effects, 30-32 secondary workers, 226-227 by sector, 4-5, 17, 19, 49-51 technology and, 225-228 women, 55-56 see also Working conditions Europe, deregulation, 36, 209 Organization for Economic Cooperation and Development, 107- 108, 169-181 (passim) European Economic Community, 41, 209, 219 Exports/imports, see International trade Express cargo, see Air transport: cargo F Federal Deposit Insurance Corporation, 151 Federal Express, 161-163, 164, 221, 230 Federal government, 112-- 115, 219-231 productivity of, measurement, 151 - 152 R&D role, 13, 110-111 see also International agreements; Policy issues; Regulation/deregulation; specific government agencies Federal Home Loan Bank Board, 151 Federal Mediation and Conciliation Service, 114 Federal Reserve Board, 151 Federal Trade Commission, 111, 115 Final demand composition, 58-60, 62 Financial markets foreign exchange, 44, 109, 219, 233 interest andinterest rates, 111, 112, 176, 220 international, 35-36, 217-218 savings, 111 securities trading, 27, 36, 188-189, 202, 234 see also Capital investment; Investment Financial services automotive marketing, 38, 216 deregulation, 36-37, 208-209

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242 information technology and, 38, 131, 132-133, 134, 193, 199, 201 international, general, 173, 176-177, 179- 180; by Japan, 42-43, 187- 192, 193, 198-210 manufacturing industry, interrelationship, 82-92 productivity measures, 150- 151 securities trading, 27, 36, 188- 189, 202, 234 see also Banking Foreign exchange, 44, 109, 233 Foreign investment in U.S., 41-42, 173, 197, 201-202, 203-204, 208, 230 Foreign trade, see International trade Fourastie, J., 76 Franchising, 181 Freight transport air cargo, 9, 160- 166 productivity measures, 146 Fuji Bank, 201 Functional cost analysis, 151 G General Accounting Office, 114 General Agreement on Tariffs and Trade (GATT), 10, 39, 213, 230 General Motors, 38, 215 Goldman Sachs, 201, 208 Gonen~c, Rauf, 10-11, 38, 167-186, 230- 231 Government federal, 13, 110-113, 150-152, 219-231, see also specific government agencies state and local, 114, 152, 164 see also Policy issues; Regulation/ deregulation Gross Domestic Product input-output analysis, 100- 104 international trade in services as portion, 41 Gross National Product (GNP) employment and, 58-60, 62, 73, 109, 112 international trade in services as portion, 41 R&D and, 108, 110 sectoral, 17, 19, 100-104 Gross Product Originating series, 2-4 Group of Ten, 219 Guile, Bruce R., 1- 15 INDEX H Health care manufacturing industry, interrelationship, 82-91 productivity of hospitals, 153-154 technology and, 113 Health Systems Management Group, 153-154 Hirfendahl indices, 21-22 Honda, 34-35 Hospitals, productivity measures, 153- 154 Household activities production and purchase of services, 96-97 I Imports/exports, see International trade Inflation, 109, 110 Information technologies, 160 capital investment, general, 118- 119, 121-125; by services sector, 125-132 data bases, 37-38, 232-233 economies of scale in information, 69 financial services and, 38, 131, 132- 133, 134, 193, 199, 201 Japan's international strategy, 192- 198 manufacturing and, 215, 219 productivity and, 133- 137 unfair competition via, 224 value added, 209 see also Computer hardware and software Infrastructure, 12, 174, 219, 222, 224, 231 Japanese global strategy, 192, 193, 196, 201, 202 Innovation and technology, 6, 16-44, 76-78, 168, 213, 214 air express cargo, 162, 166 catalytic converters, 142 communications, 129- 130 competitive structures and, 26-27, 35-36, 118-137 computers, 132- 133 information industry, 118- 119, 122- 129 intensity measures, 129- 133 policy and, 110- 116 productivity, value added, and, 30, 105-108, 133-137 regulations and, 114- 115, 182, 220, 223-225, 231-232 resistance to, 69-70

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INDEX time factors, 220-221 see also Research and development Input-output analysis, 6-7, 8, 57-61, 74, 78-98, 100-108, 232-233 definitional issues, 70, 71-73, 93-96, 141-145 measurement issues, general, 139- 145, 155-158; by sector, 145-155 technology as factor, 99 Institute for Economic Analysis, 98 Insurance manufacturing industry, interrelationship, 82-92 Nippon Life Insurance Company, 202, 208 United Kingdom, 38 Intellectual property, l l, 43, 110, 223-224 Interest and interest rates, ill, 112, 176, 220 International agreements Air transport treaties, 164- 166 General Agreement on Tariffs and Trade, 10, 39, 213, 230 with Japanese, semiconductor dumping, 197; financial services, 203 International Balance of Payments Annual, 169 International Classification of Diseases, 153 International Monetary Fund, 38-39, 169 International organizations Bank for International Settlements, 225 European Economic Community, 41, 209, 219 Group of Ten, 219 International Monetary Fund, 38-39, 169 Organization for Economic Cooperation and Development, 107- 108, 169- 181 (passim) Society for World Interbank Financial Telecommunications, 38 International trade, 9- 12, 38-44, 116, 167- 184, 228-230, 232 agreements, 10, 39, 164-166, 197, 203, 213 air transport, 164- 166 balance of trade/payments, 38-40, 116, 169, 173, 188, 217, 225 capital market, 36 classification of services, 173- 175 competitive structures, 35-36 computer hardware, Japanese strategy, 192-198, 220 243 dumping, 192, 193, 196- 197, 202-203 financial and banking services, general, 173, 176-177, 179-180; by infrastructure and, general, 12, 174, 219, 222, 224, 231; by Japan, 192, 193, 196, 201, 202 Japan, 42-43, 187- 192, 193, 196, 201, 202, 198-210, 230-231 manufacturing services, 216-217 policy of U.S., 109 producer services industries growth, 69 protectionism, 192, 197, 205, 209, 230 social services and utilities, 181- 182 statistical overview, 169- 173 telecommunications and, 180 utilities, 181 - 182 Interstate Commerce Commission, 146- 147 Inventory, just-in-time, 34, 61, 160- 161, 162, 230 Investment foreign by U.S., 39-42 foreign in U.S., 41-42, 173, 197, 201-202, 203-204, 208, 230 in infrastructure, 12 services, 23 tax incentives, 111-112, 116, 219, 220, 231 trade deficit and, 116, 173 see also Capital investment J Japan banking and communications, 42-43 financial services, 42-43, 187- 192, 193, 198-210 Honda manufacturing/services interface, 34-35 information technology, 192- 198 international trade position, 11-12, 187-210, 220-221, 230-231 Job training, see Education and training Job Training Partnership Act, 113, 116 Just-in-time inventory, 34, 61, 160- 161, 162, 230 K Kendrick, John W., 7-8, 9, 23, 99-117, 223 Kettell, B., 233 Kutscher, Ronald E., 6, 7, 30, 47-75, 168

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244 L Labor costs and efficiency, 113-114 measurement, 134-135, 143-145 Laws, see Legal services; Statutes Leasing services, 202 Legal services, 37, 69 LEXIS, 37 Loans, 150-151 international, by Japan, 189, 200 Local government, 114, 152 Lockheed, 37 London Stock Exchange, 193 M Macroeconomics, 220-222, 231 services role in U.S. economy, 76-97 Management occupations in manufacturing, 62-63, 66-67 participatory, 113-114 Managing Innovation: Cases from the Services Industries, 1, 213 Manpower international movement of skilled professionals, 11 Occupational Employment Statistics (OES), 61, 64, 74 productivity and, 134 see also Education and training; Employment and unemployment Manufacturing costs, 216 Manufacturing industries clerical workers, 62-66, 67 deindustrialization, 1-5 employment trends, 28-30, 62-64 growth, 16 interdependence with services industries, 6-7, 19-20, 32-35, 60-68, 76-77, 82-98, 167, 211-212, 214-219, 220 macroeconomic and tax supports, 220-222 managerial occupations, 62-63, 66-67 professional and technical workers, 62-63, 65, 66-67 staffing patterns, 66-67 unbundling of manufacturing/services, 60-68, 73 Mark, Jerome A., 7, 8-9, 23, 139-159 Marketing, 24 Mead Data Central, 37 Measurement issues INDEX government productivity, 151- 152 international trade, 39, 44, 177, 228-229 labor input, 143- 145 productivity, general, 6-7, 8-9, 22-23, 105, 134, 135, 139-143, 155-158, 213; by sector, 145-155 technology intensity measures (TIMs), 129-133 see also Bureau of Labor Statistics; Classifications; Statistics Military, see Defense industries Minorities, 54-56 Mitsubishi Bank, 201 N National Academy of Engineering, 113 National Center for Health Statistics, 154 National Cooperative Research Act of 1984, 111 National Institutes of Education, 113 National Science Foundation, 110, 113, 116, 228 National Study on Trade in Services, 41 Newspapers, 37 New York Stock Exchange, 188, 192 NEXIS, 37 Nippon Life Insurance Company, 202, 208 Noruma Securities Company, 202 o Occupational Employment Statistics (OES), 61, 64, 74 Office of Management and Budget, 114 Office of Technology Assessment, 39, 173 Oil crises, 108 Organizational frameworks and structures 37-38 infrastructure development, 12, 174, 192, 193, 196, 201, 202 Japanese global strategy, 191 -210 manufacturing/services interdependence, 6-7, 19-20, 32-35, 60-68, 76-77, 82-98, 167, 211-212, 214-219, 220 unbundling of manufacturing/services, 6, 60-68, 73 Organization for Economic Cooperation and Development (OECD), 107- 108, 169-181 (passim)

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INDEX p Parts, see Repair and parts services Part-time employment, 30 Passenger transport, airlines, 37-38, 41 Patents, see Intellectual property Pauli, Gunter A., 11 - 12, 187-210, 229 Personal services, productivity, 153- 154 Policy issues, 1-14, 211-233 financial services, 208-210 human resources, 225-228 productivity and technological advance, 108-116 research, 12- 14 Postal services electronic banking in Britain and, 38 manufacturing industry, interrelationship, 88-92 Poverty, 113 Presidential Task Force on Market Mechanisms, 224-225 President's Commission on Industrial Competitiveness, 112- 113, 228 President's Competitiveness Initiative, 111, 113 Prices, 60, 74, 142-143 dumping (trade), 192, 193, 196- 197, 202-203 in Japanese global strategy, 192, 193, 195, 196-197, 202-203, 205 Privatization, 38 Producer Price Index, 74 Producer services, employment, 6, 57-60, 67-69, 74 Productivity and production business services, captive production, 93-96 by economic sector/industry group, 2-3, 18, 24, 25 Gross Domestic Product, 41, 100-104 Gross National Product, 17, 19, 41, 58- 60, 62, 73, 100-104, 108-110, 112 Gross Product Originating series, 2-4 growth in services, 7-9, 23 household production and purchases of services, 96-97 input-output analysis, 6-7, 8, 57-61, 74, 78-98, 99-108 measurement of, general, 6-7, 8-9, 22-23, 105, 134, 135, 139-143, 155-158, 213; by sector, 145-155 personal services, 153- 154 245 policies to promote, 108-116, 212-213 real gross product, 100 services, factors in, 99-117 technology and, 30, 105- 108, 133- 137 total factor productivity, 100- 104 Professional and technical workers government regulation and, 69 in manufacturing, 62-63, 65, 66-67 Profit Impact of Market Strategy (PIMS), 20, 22 Protectionism, 192, 197, 205, 209, 230 Public services recession effects, 32 Public utilities, see Utilities Q Quality of services, 142 disintermediation and, 37 Quinn, James Brian, 6-7, 12- 13, 16-46, 211-234 R Reagan administration, 111, 112- 113, 197, 224-225, 228 Real gross product, 100-104 Recession, services sector effects, 120 on employment, 30-32 Regression analysis, 105- 108 Regulation/deregulation air cargo, 163- 166 antitrust, 37, 111, 115, 224 catalytic converters, 142 Europe, 36, 41, 209, 219 financial services, 36-37, 208-209 innovation and, 36-38 intellectual property, 11, 43, 110, 223-224 international, 10, 11, 39, 43, 163-166, 197, 200, 203, 213, 225 legal services, 69 as productivity factor, 107, 108, 114- 115 services associated with proliferation of, 69 small businesses, 116 technological change and, 114-115, 182, 220, 223-225, 231-232 transportation, 163-166, 219 Repair and parts services, 153 Research and development, 232 academic, 111, 116

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246 case study method, 1, 99- 100, 117, 213 federal role, 13, 110-111, 113, 116 international competition and, 43 on policy, 12- 14, 108- 109 private investment in, 22, 111- 112, 116 productivity and, 105- 106, 108, 110- 111 regression analysis, 105- 108 Retail trade, 34, 37, 131 financial services, 179 productivity measures, 148- 149 Roach, Stephen S., 8, 9, 21, 118-138 S Salaries and wages, 232 future trends, 29-30, R&D and, 110 by sector, 4-5 see also Labor costs and efficiency Sanwa Bank, 201, 202 Savings, 111 Securities trading, 27, 224 global, 36 Japanese, 188- 189, 202 taxes, 221 Semiconductors, 195- 198, 199, 209 Services industries definitional issues, 18, 47, 48, 70, 71-72, 74, 77-78, 93-96, 140-143, 167-168, 173-175 development and role of in U.S., 5-6, 16, 76-98 goods economy vs services economy, 70-73, 76-77 interdependence with manufacturing, 6-7, 19-20, 32-35, 60-68, 76-77, 82-98, 167, 211-212, 214-219, 220 macroeconomics, 5-6, 16, 76-98, 220-222, 231 organizational frameworks and structures, 12, 37-38, 174, 192, 193, 196, 201, 202 policy issues, 1 - 14, 108- 116, 211 -233 unbundling of manufacturing/services, 6, 60-68, 73 see also specific industries Shearson Lehman Brothers, 202, 208 Singapore, 38 Small Business Administration, 116 Small-scale operations, 21, 37 Smith, Frederick W., 9, 160-166, 230 Social services INDEX internationalization, 182 privatization, 38 Society for World Interbank Financial Telecommunications, 38 Standard Industrial Classification (SIC), 23, 47, 66, 93, 94, 95, 145 State government, 114, 152 deregulation, 164 Statistics business services, captive production, 93-96 household production and purchases. 96-97 international trade, 169- 173, 177 national data collection efforts, 8 Occupational Employment Statistics (OES), 61, 64, 74 output definitions, 70, 71-73, 93-96, 141 regression analysis, 105- 108 Standard Industrial Classification (SIC). Statutes 23, 47, 66, 93, 94, 95, 145 see also Bureau of Labor Statistics; Classifications; Measurement issues Job Training Partnership Act, 113, 116 National Cooperative Research Act of 1984, 111 Tax Act of 1986, 112 see also Regulation/deregulation Sumitomo Bank, 201, 208 Supply/demand, 34 GNP, employment growth, and, 58-60, 62, 73 for international services, 174- 176, 177-180 T Tax Act of 1986, 112 Taxes investment and other credits, 111- 112, 116, 219, 220, 231 R&D credits, 110 tuition credits, 113 Taxonomies, see Classifications Technology, see Innovation and technology; Research and development Technology intensity measures, 129-133 Telecommunications, see Communications Telephone industry, 147, 221 Tokyo Stock Exchange, 188 Total factor productivity, 100- 104

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INDEX Trade, see International trade Training, see Education and training Transportation industries deregulation, 37 manufacturing industry, interrelationship, 82-91 productivity measures, 146- 147 see also Air transport; Freight transport U Unbundling of manufacturing/services, 6, 60-68, 73 Unemployment, see Employment and unemployment United Kingdom, 23-24, 32, 38, 224 Universities, 111, 115- 116, 228 Utilities internationalization, 181- 182 manufacturing industry, interrelationship, 88-91 privatization, 38 productivity measures, 148 V Value added information technology, 209 247 international trade and, 231 Japanese global strategy, 192, 193, 197-198 manufacturing vs services, 18-20, 25, 33-34, 216 tax on, 112 technology and, 30 W Wages, see Salaries and wages Walter E. Heller, 201 Washington Business Group on Health, 233 Wasserstein Perella, 202 Wholesale trade, 37 information technology dependence, 131, 132 manufacturing industry, interrelationship, 88-91 productivity measures, 149-150 Women, 30 Working conditions, 32 Wright, Richard W., 11 - 12, 187-210, 229 y Yale University, 153