Dynamic Classification of the EU Countries in terms of Employment in High Technology Manufacturing and Knowledge-Intensive Services

Abstract:

The aim of the paper is to identify the groups of European Union countries, similar from the point of view of employment structures in manufacturing sections of high technology and knowledge-intensive services. Dynamic cluster analysis is the methodology applied for this purpose. The number of groups is identified by Ward’s agglomerative procedure while the final partition was obtained by k-means method. Variables (shares) in the following sections are used in the analysis: medium high-technology manufacturing, high-technology manufacturing, medium low-technology manufacturing, low-technology manufacturing, knowledge-intensive high-technology services, knowledge-intensive market services, other knowledge-intensive services, less knowledge-intensive market services. Data has been imported from Eurostat databases. Five clusters were identified, characterized by different levels of employment shares in high technology manufacturing and knowledge-intensive services. Calculated composite indicator allows for summarizing group levels and their membership changes in time.