This book focuses on general developments in the service sector and their consequences for the
competitiveness of EU countries. It aims to identify factors that influence the competitive
advantage of the service sector. The book is an outcome of a research project carried out at
the World Economy Research Institute Warsaw School of Economics. The research results
presented in this book allow concluding that Europe needs to support services and innovation in
the service sector in order to enhance growth and competitiveness across the EU.