Structural Change in German Manufacturing: Hybrid Products and Production Processes Are Changing Industrial Business Models

Key Messages

• Growing discrepancy between output from national accounts and industrial production in German manufacturing.
• Share in non-industrial activities of industrial enterprises is increasing.
• Industrial products are becoming more hybrid as more goods are bundled with product-related services.
• Production processes in German manufacturing are also becoming more hybrid.
• Manufacturing firms outsource goods production and concentrate domestic activities on product development and commercialization.