Introduction (business meeting) Second Consortium Meeting, 9-11 June 2005, Helsinki

1. Introduction (business meeting) Second Consortium Meeting, 9-11 June 2005, Helsinki Bart van Ark Groningen Growth and Development Centre University of Groningen This project is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".

2. Introduction • Aims of 2nd consortium meeting in light of EU KLEMS project • Progress over past 8 months (since October 2004 meeting in London) • Next steps (up to April 2006) • Administrative issues • Questions

3. Main aspects of EU KLEMS database • EU KLEMS project is 3-year statistical and analytical research project funded by 6th Framework Programme • Purpose is to create a database on productivity by industry for EU member states with a breakdown into contributions from capital (K), labour (L), energy (E), materials (M) and service inputs (S) • Full coverage of “old” EU-15 plus 5 new member states (PL, SK, HU, CZ and SI) • Limited coverage of GR and PT and other 5 new member states (CY, MT, LT, LV and EE) • Also comparisons with U.S. and Japan (and Canada) • Time coverage: 1970-2005, with greatest detail on revision period • 14 research institutes across Europe, led by GGDC and NIESR

4. Main aspects of analytical research • Conduct out a number of analytical research projects in areas of: • analysis of productivity, prices, industry structures, technology and innovation indicators • labour markets and skills • technological progress and innovation • link to productivity research using firm level databases

5. Setup of project: Workpackages

6. Progress November 04 – May 05 (I) • Consortium meeting on 26-27 October • Administrative matters • Methodological papers • Data collection: • Data availability questionnaire in January/February • 2nd Data Co-ordination group meeting on 25 February (Amsterdam) • Decisions about concepts • Identification of problem areas •  follow up requests  today’s agenda • Contacts & meetings with NSI’s • Visited most NSI’s  three status positions • Data delivery schedules • Statistical vs. analytical modules • Data base management • Workshop of Database Management (DM) group on 18 & 19 January • Acquisition and installation of SAS software • Some problem areas (Saturday)

7. Co-operation with NSIs is important for project • Three status positions: • Subcontracting: Statistics Finland, ISTAT, Statistics Netherlands • Participatory status: Statistics Sweden, STATEC (Luxembourg), ONS • Observer status: INSEE, Statistics Denmark, Statistisches Bundesamt, Institute of National Statistics (Belgium), Statistics Austria, Statistics Ireland, INE, Statistical Office Slovakia, Statistical Office Poland, CSO Hungary • Contacts under development: • New member countries covered by project: Czech Republic, Slovenia • Contacts to be developed (through EPROS): Greece, Portugal, Lithuania, Latvia, Estonia, Cyprus, Malta • Also contacts with: • USA (Harvard University, BEA, BLS) • Japan (RIETI, Hitotsubashi) • Canada (Statistics Canada)

8. Statistical vs. analytical modules of database • Statistical module of the database: • Data consistent with those published by NSIs • According to rules and conventions on national accounts, supply and use tables, commodity flow methods, etc. (SNA 1993, ESA 1995) • Data meet statistical standards of NSI's and Eurostat and can eventually be incorporated in their present statistical practices. • Analytical module of the database • Developed parallel to the Statistical module • Produces additional data and fills gaps using alternative techniques (e.g. growth accounting) which presently will go beyond the ESA95 and SNA93 or do not (yet) meet statistical standards • Consider alternative or pioneering assumptions regarding statistical conventions on, for example, the output and price measurement of ICT goods and non-market services, measurement of skill levels, construction of capital stock and capital services, or capitalization of intangible assets.

9. Issues in co-operation with NSI’s requires continuous contacts on bilateral basis • EU KLEMS needs organize working schedules around individual NSI’s programmes, but flexibility on both sides is needed to make it work • Access to unpublished data and sharing between consortium partners requires specific arrangements with NSI’s • Assistance and advice in using greater (unpublished) detail from Supply & Use tables as well as historical (pre-revision) SUTs. • In principle use integrated labour and national accounts for labour quantity data as default, but alternative sources (including micro data, where possible) are also important • Dilemma of not using “not so reliable” data on industry-by-asset tables or using estimation methods • Use of unpublished data for development of analytical module of database needs to be carefully monitored

10. Database management • Use of SAS for central management of international EU KLEMS databases • Advantages of SAS • Relational database • High flexibility • Experience with Productivity Research Data System (PRDS) developed by ESI • Problems of SAS • Not all consortium members have it • Interchange SAS – STATA • Maintenance rights between consortium members • Co-ordination

11. Stylistic view of database structure

12. Which procedures here? Which procedures here?

13. Consortium members EU KLEMS database management

14. WP2 will require much work at country level for data input Consortium members EU KLEMS database management

15. WP3 can be mostly handled at international level for data input Consortium members EU KLEMS database management

16. WP1 depends on detail of information & expertise of consortium partners or inputs from NSOs Consortium members EU KLEMS database management

17. Time line of project (Oct 04 - Oct 05)

18. Time line of project (Oct 05 - Oct 06)

19. Time line of project (Oct 06 - Sep 07)

20. Upcoming activities • Continuation of data collection • Database construction (country level and EU level) • End 2005/early 2006: release of preliminary version EU KLEMS database • Conferences and Workshops • OECD Workshop on Productivity Programmes of NSI’s (October 2005) • Data Co-ordination group meeting on preliminary database (Nov 2005) ? • EU KLEMS Workshop on Eastern Europe, WIIW, Vienna (Dec 2005) • Conference on Technology Indicators (WP9), together with DIME and TEG (late 2005) • Next consortium meeting in April 2006? • Workshops on individual WPs? • Workshops in individual countries?

21. Administrative Issues • Record activities (workshops, visits to NSO’s, etc.)  it all counts for the EU KLEMS output and for your auditor • Provide notes but above all EU KLEMS Working Papers  and publish where possible in refereed journals • Get your auditor involved soon in your accounts: 21 September is drop[deadline • OTHER QUESTIONS?