Keywords: The Subsystem Approach; Deindustrialization; KIBS; Italy; Euro Area.
This paper aims to investigate the structural change in Italy and in the countries of the Euro Area. In particular, the analysis shows new evidence about the main features of the deindustrialisation process. Following the subsystem approach to the input-output model, the analysis provides an analytical representation of the economic structure that allows to identify the activities that are directly and indirectly necessary to satisfy the manufacturing final demand. The results show that disparities are growing in the composition of productive structure and they are even more pronounced when we consider intersectoral dynamics, manufacturing subsystem technological intensity and the role of knowledge intensive business services – i.e., KIBS.