This book contributes to a better understanding of the service economy. By exploring the key dimensions, available empirical evidence and associated policy implications, the author comprehensively investigates the new challenges facing the global economy, including employment, productivity, innovation and competitiveness. The case of the European services is highlighted, particularly in comparison to the US. On the basis of these challenges, the book examines the existing and potential services-related policies at the EU level, incorporating discussions on regulation, competition policy, internal markets and regional policies. The book argues that the orientation of many of these policies is still in its incipient stages and there is much to be done in terms of scope, definition, coordination and shaping to satisfy the needs and varied nature of heterogeneous services. To have a strong and integrated services market in the EU remains as a major policy objective requiring new impetus and political ambition in order to succeed. This is a work combining new evidence on the service economy and a full range of policy implications at the EU level. As such it will be of interest to researchers and policymakers, professionals in service firms, students in international business and those interested in services as a dimension of any economic and business activity.