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Emergence of Manufacturing Related Services and Collaboration between Korea and China Manufacturing Innovation Perspectives

Author Lee SangHyun Date 2019.12.31 Series
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The emergence of manufacturing related services (MRS) coincides with the revaluation of manufacturing We observed that manufacturing-focused countries overcame the financial crisis which broke out in 2007 with less difficulty than their service-focused counterparts. Manufacturing played a crucial role in navigating the economic problems such as unemployment, polarization and stagnant growth and so on. Moreover, this pattern of positive impacts from the manufacturing sector was observed from European countries trying to boost their economy. Germany, a manufacturing-driven economy, showed continuous economic growth, while service-driven economies in Greece and Austria experienced recession. Therefore, the importance of manufacturing was revaluated and commonly shared.
However, the manufacturing sector we are revaluating now is not what it once was. Interestingly, manufacturers do not only manufacture any more.
Instead, their activities increasingly involve services. According to a 2012 report from McKinsey, more than 34 percent of U.S. manufacturing employees are involved in service areas, or service-like activities.
These service-like-activities include research and development, engineering, design, marketing and customer services which are sources of high value added and high quality jobs. In short, these changes allowed manufacturing to overcome financial crises and energize economies with trickle-down job creation, upgrades in the industrial value chain and new demand for professional services.