Work productivity in the sector of knowledge intensive services in relation to work productivity in the manufacturing industry

The manufacturing industry represents the most important part of gross output in the Czech Republic. In the long run, it is necessary for the Czech industry to be competitive. At the same time, it can be assumed that foreign pressure on the Czech manufacturing industry will at least partially transform into pressure on professional and scientific activities. Science and research thus play a key role. The aim of the article is to analyse the impact of work efficiency in the branch of professional, scientific, technical, administrative and support service activities (i.e. sections M and N of the CZ NACE classification of economic activities) on the manufacturing industry (section C). Productivity is measured as gross value added to the labor. The quarterly data of the Czech Statistical Office for the period 1995-2020 are used for the analysis. Time series are processed using a Census X12 filter; all variables are tested using the ADF test in two variants for the presence of a unit root. The testing of the long-term relationship is conducted by means of the Johansen test. The results show that both productivity delays in sector C and sectors M and N have a statistically significant impact on productivity in sector C. However, a positive productivity shock in sector C has a negative impact on current productivity and, conversely, a positive shock in productivity in branch M + N in t-1 is positively reflected in branch C at time t.