microsubsector

A microsubsector is a narrowly defined subset of an industry that groups together firms and activities sharing a tightly related set of inputs, processes, or markets. It is smaller than a subsector and typically corresponds to a specific product, service, or stage of the value chain within a broader sector. The concept is used in economic analysis to capture heterogeneity and focus policy or investment attention on tightly interconnected activities.

Definitions of a microsubsector vary, but common criteria include product specificity, shared technology or production methods, geographic clustering, or common distribution channels. Because the boundaries are often dataset-dependent, microsubsectors can be defined differently across studies or countries. They are useful for examining micro-level dynamics that are obscured when looking only at larger industry aggregates.

Examples might include a microsubsector of medical device components within the health care equipment industry, a cluster of artisanal confectionery makers within the food sector, or a group of specialized solar photovoltaic mounting systems within the broader energy equipment sector. In services, a microsubsector could encompass a particular niche such as veterinary telemedicine within health services.

Data and analysis for microsubsectors rely on granular firm- or product-level information, value-added by narrow product categories, or input-output relationships at a fine classification level. This granularity supports targeted policy, supply chain mapping, and competitiveness assessments. Limitations include inconsistent definitions across sources and limited data availability, which can hinder cross-country comparability.