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FIgURE III.2: EU average annual production growth rate in 1995-2010 (%)
Pharmaceuticals
Computer, electronic and optical products
Motor vehicles
Other manufacturing
Chemicals
Other transport eqpt.
Food
Machinery and equipment n.e.c.
Rubber and plastic products
Electrical equipment
Paper and paper products
Beverages
Fabricated metals
Repair and installation
Basic metals
Wood and wood products
Coke and rened petroleum
Printing and publishing
Non-metallic mineral products
Furniture
Textiles
Tobacco
Clothing
Leather and footwear
Source: own calculations using Eurostat data.
Chapter III — Drivers of Sector Growth and Competitiveness
-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
box III.1: Output measurements: Value added v. production
Value added presents the advantage of being available for all types of activities: ranging from agriculture to
non‑business services while production is only available for manufacturing activities. The Eurostat Manual of
Business Statistics identifies two possible meanings for the concept of ‘production’: 1. activity of manufacturing, i.e.
the transforming of goods; or 2. result of this activity, i.e. the output of manufactured goods in a fixed period. In both
definitions of production, Eurostat excludes the services sectors. The other main difference is that value‑added is
a measure of output that subtracts intermediate consumption made by an individual producer, industry or sector
while production includes intermediate consumption.
Source: European System of Accounts (ESA) 1995, and NACE Rev. 1, Introduction, P. 21, OECD.
The developments in individual sub‑sectors in figure III.1 above
are hidden by the level of aggregation. Studying production
growth rates at the 3‑digit NACE level offers a more refined
picture of the various EU sectors in 1995‑2010. Concerning the
highest growing aggregated sector ‘Computer, electronic and
optical products’ in Figure III.1, the underlying sub‑sectors are
irradiation, electromedical and electrotherapeutic equipment,
installation of industrial machinery and equipment, medical
and dental instruments and supplies, optical instruments
and photographic equipment, instruments and appliances
for measuring, testing and navigation, electricity distribution
and control apparatus. Growth rates in these sectors varied
between 2.2 % and 4.5 %. Similarly, the two sub‑sectors of
motor vehicles, ‘parts and accessories for motor vehicles’
and ‘motor vehicles’, grew on average by 2.4 % in 1995‑2010.
Many sub‑sectors of the machinery and equipment industry
also grew considerably, by between 2 % and 4 % in 1995‑
2009: air and spacecraft and related machinery, agricultural
and forestry machinery, general‑purpose machinery, and
other general‑purpose machinery. On the other side of the
spectrum, most of the declining sub‑sectors are associated
with the textile industry, cf. Figure III.3.
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