Social:Real net output ratio
The Real Net Output Ratio[1] (or Vertical Range of Manufacture[2]) is a term commonly used by German economists[3] and infrequently used in wider Europe, and globally.[4] It is used as a measure of vertical integration, though typically limited to a business, rather than across a group of associated companies or a nation. The term was first popularized outside Germany in Hermann Simon's 1996 publication, Hidden champions: lessons from 500 of the world's best unknown companies. [5]
In a value chain, the Real Net Output Ratio is the fraction of the internal (company specific) production on the total production value of one company. The total production value of a company consists of internal production plus the sum of externally produced goods and services.
A Real Net Output Ratio of 0% relates to a company that does not have its own production and therefore only does trading.
References
- ↑ Gabler Wirtschafts Lexikon. 1984. doi:10.1007/978-3-322-87454-2. https://doi.org/10.1007/978-3-322-87454-2.
- ↑ Shraddha (2023-05-04). "Vertical integration - Leanbyte" (in en). https://wordpressdemo.leanbyte.de/en/lexikon/fertigungstiefe/.
- ↑ "Germany: Industry sectors put to the test" (in en). https://www.prognos.com/en/news/germany-industry-sectors-put-test.
- ↑ "vertical range of manufacture - Fertigungstiefe - Wrong entry in LEO?: English ⇔ German Forums". https://dict.leo.org/forum/viewWrongentry.php?idForum=7&idThread=303766&lp=ende&lang=en.
- ↑ Simon, Hermann; Lorenz, Jürgen Ulrich; Simon, Hermann (1998). Die heimlichen Gewinner: die Erfolgsstrategien unbekannter Weltmarktführer = (Hidden champions) (5. Aufl ed.). Frankfurt/Main: Campus-Verl. ISBN 978-3-593-35460-6.
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