Demand-side issues of the service economy

This paper examines the relevance of the demand-side approach to the development of a service economy. Its starts by addressing some concerns about the possibility of creating a growth regime based on services. Discussion has mainly focused on the increasing share of services in consumer spending; but equally important is the fact that most products--goods and services alike--integrate a significant service-to-the-client dimension. The paper considers the costs incurred by strategies that aim to create value for the client and that require the existence of a purchasing power likely to validate them.