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United Nations Statistics Division

ICT, Information and Intellectual Property Products An overview of concepts and how they relate to the CPC Ver. 2. United Nations Statistics Division. Background. ISIC Rev.4 contain an alternative aggregate for an “ICT sector” definition and a “content and media” sector definition.

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United Nations Statistics Division

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  1. ICT, Information and Intellectual Property ProductsAn overview of concepts and how they relate to the CPC Ver. 2 • United Nations Statistics Division

  2. Background • ISIC Rev.4 contain an alternative aggregate for an “ICT sector” definition and a “content and media” sector definition. • Likewise, CPC Ver.2 comes with an alternative aggregate for the “information economy” product definition. • These aggregates originates from the work of an OECD Working Party working in the context of developing indicators on the information society. (WPIIS) • Their first ICT definition came out in 1998. Since then, development in NAICS and later ISIC have been important for driving the development of these sector and product definitions. • In the development of these definitions, a number of concepts were defined and used.

  3. Scope of presentation • In this presentation we will look at: • the concepts and definitions used when talking about the information economy. • what they mean • how they differ from each other • how they interact • How the new Central Product Classification (CPC v2) relates to these concepts. 3

  4. Why this presentation? • The adoption of new ideas relating to the “information economy” in ISIC/CPC, has caused substantial changes in these classifications. • introduction of new subclasses • new concepts used in describing subclasses • changes in structure • Some conceptual problems in CPC v1.1 (the previous version) and a rapid change in the actual products • distinction between original, content and provision services. • emerging products 4

  5. Key concepts The Information Economy ICT Sector Content/Media Sector ICT Products Originals Content Intellectual Property Products 5

  6. Information Economy CONTENT/MEDIA SECTOR ICT SECTOR Activity (ISIC 4) Product (CPC 2)

  7. The ICT sector • ICT sector defined by aggregating complete ISIC classes according to the following general principle: • The production (goods and services) of a candidate industry must primarily be intended to fulfil or enable the function of information processing and communication by electronic means, including transmission and display. • The industries considered were from manufacturing, trade, services and repair. 7

  8. Information Economy CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Activity (ISIC 4) Product (CPC 2)

  9. The content/media sector • It was early recognized that the scope of the “information economy” ought to be extended beyond that of the ICT sector. • Content and media industries are engaged in the production, publishing and/or the electronic distribution of content products. • Guidelines for identifying a content or media product (OECD): “Content corresponds to an organised message intended for human beings published in mass communication media and related media activities. The value of such a product to the consumer does not lie in its tangible qualities but in its information, educational, cultural or entertainment content” • The content/media sector are industries that create and disseminate mass market information and cultural products; the ICT sector provides the means for doing so. • In ISIC 4, all of the content/media sector is contained within ISIC section J: “Information and communication” 9

  10. Information Economy CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) Product (CPC 2)

  11. ISIC Section J • The new section J in ISIC is called “Information and communication” • It covers major parts of the “Information Economy” • All of the content/media sector • The services part of the ICT sector (i.e., not including manufacture, wolesale trade and repair) 11

  12. Information Economy ISIC J (58-63) CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) Product (CPC 2)

  13. Products of the Information Economy • When defining the products of the Information Economy, the guiding principle was that they should be the output of the Information Economy sectors (ICT and content/media). • This approach facilitates consistency between product statistics and industry statistics 13

  14. ICT products • The ICT products (left side of diagram) were identified as those primarily intended to fulfil or enable the function of information processing. • This is generally (but not always) the products from the ICT sector. • The ICT product definition does not have a specific goods/services split. 14

  15. Information Economy ISIC J (58-63) • Electrical capacitors, resistors and their parts • Wholesale trade services • Leasing/rental of ICT equipment CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) ICT PRODUCTS Services: • Business/prod. software • All software originals • IT consultancy • Telecom. services Manufacture: • Computers/periph. • Communication equip. • Consumer electronics • ICT components • Manuf. Services Maintenance/repair • Of computers • Of telecom. equipment Product (CPC 2) • Digital cameras • Other rec. media

  16. “Content/media products” • These products embody an organized message intended for human beings and mass publishing, or related media activities. Its value lies in its information content, not its physical form. • Generally, products coming out of the content/media sector (but also a handful from the ICT sector and from outside) • Major components are: • originals • content • related services 16

  17. Information Economy ISIC J (58-63) • Electrical capacitors, resistors and their parts • Wholesale trade services • Leasing/rental of ICT equipment CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) CONTENT/MEDIA PRODUCTS ICT PRODUCTS Content/serv. Services: • Business/prod. software • All software originals • IT consultancy • Telecom. services Manufacture: • Computers/periph. • Communication equip. • Consumer electronics • ICT components • Manuf. Services Maintenance/repair • Of computers • Of telecom. equipment Originals Product (CPC 2) • Digital cameras • Other rec. media

  18. Originals • The output of a intellectual / creative activity may be considered a service or an original • When the activity is carried out for another party, a service is being provided. • When the output of the creative activity is not carried out for someone else, the output is an original. • Originals services • Originals copies • This distinction is also made in the SNA. 18

  19. Originals(continued)‏ • Examples of intellectual / creative activities • writing of manuscripts and other texts • audiovisual productions • music composition • music performance • research activities • product design activities • geological surveys 19

  20. Information Economy ISIC J (58-63) • Electrical capacitors, resistors and their parts • Wholesale trade services • Leasing/rental of ICT equipment • Original works of authors, composers, etc. CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) CONTENT/MEDIA PRODUCTS ICT PRODUCTS Content/serv. Services: • Business/prod. software • All software originals • IT consultancy • Telecom. services Manufacture: • Computers/periph. • Communication equip. • Consumer electronics • ICT components • Manuf. Services Maintenance/repair • Of computers • Of telecom. equipment Originals Product (CPC 2) • sound recordings • motion pictures • radio/TV prog. • product design • Digital cameras • Other rec. media

  21. Content • The reproduction, in some form, of an original, regardless of physical media • In general, most of the value is in the information content, not the device. • A copy of content is a product. • The System of National Accounts uses the concept of “copies” 21

  22. Information Economy ISIC J (58-63) • Electrical capacitors, resistors and their parts • Wholesale trade services • Leasing/rental of ICT equipment • Original works of authors, composers, etc. CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) CONTENT/MEDIA PRODUCTS ICT PRODUCTS Content/serv. Services: • Business/prod. software • All software originals • Licensing of software • IT consultancy • Telecom. Services Manufacture: • Computers/periph. • Communication equip. • Consumer electronics • ICT components • Manuf. Services Maintenance/repair • Of computers • Of telecom. equipment Originals Product (CPC 2) • printed/text-based c/s. • M. picture, video, radio c/s. • Music c/s. • game software • On-line c/s. • sound recordings • motion pictures • radio/TV prog. • product design • Digital cameras • Other rec. media

  23. Intellectual Property (IP) products • According to the System of National Accounts:“Intellectual property products are the result of research, development, investigation or innovation leading to knowledge that the developer can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection.” • Specific forms mentioned are products from: • Research and development • Mineral exploration and evaluation • Computer software and databases • Entertainment, literary or artistic originals • Uses the notion of “originals” and “copies” 23

  24. Information Economy ISIC J (58-63) • Electrical capacitors, resistors and their parts • Wholesale trade services • Leasing/rental of ICT equipment • Original works of authors, composers, etc. CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) CONTENT/MEDIA PRODUCTS ICT PRODUCTS Content/serv. Services: • Business/prod. software • All software originals • Licensing of software • IT consultancy • Telecom. Services Manufacture: • Computers/periph. • Communication equip. • Consumer electronics • ICT components • Manuf. Services Maintenance/repair • Of computers • Of telecom. equipment Originals IP products Product (CPC 2) • printed/text-based c/s. • M. picture, video, radio c/s. • Music c/s. • game software • On-line c/s. • sound recordings • motion pictures • radio/TV prog. • product design • Digital cameras • Other rec. media • Other originals not covered under content/ media sector

  25. Content/media products in the CPC? • Some of them are neither goods nor services, but “IP products and similar products” • Sections 0-4 limited to transportable goods classified in the HS. • These intangible goods have therefore been classified in section 5-9, close to the services that are outputs of the same ISIC industries as the intangible goods. 25

  26. Content/media products in the CPC? (continued) • Originals • Close to the related services, found in part 5-9 • Content • Content on physical media: in the related products found in part 0-4. • Content not on physical media (downloadable) - 843 group: “On-line content” 26

  27. Pre-existing products • New detail added for information products • Books • software • audio/video tapes • CPC v2 sometimes goes beyond HS in detail. 27

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  29. Information Economy ISIC J (58-63) • Electrical capacitors, resistors and their parts • Wholesale trade services • Leasing/rental of ICT equipment • Original works of authors, composers, etc. CONTENT/MEDIA SECTOR ICT SECTOR Manufacture of: • Electronic components • Computers/peripherals • Communication equip. • Consumer electronics • Magnetic/optical media Wholesale trade: • Computers/peripherals • Electronic and telecom. equipment Services: • Telecommunications • Comp. programming • Comp. consultancy • Data processing and hosting • Web portals • Software publishing Repair • Computers • Communication eq. Publishing of: • Books • Directories and mailing lists • Newspapers and journals Motion picture, video and TV progr. • Production and post-production • Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services • News agency activities, etc. Activity (ISIC 4) CONTENT/MEDIA PRODUCTS ICT PRODUCTS Content/serv. Services: • Business/prod. software • All software originals • Licensing of software • IT consultancy • Telecom. Services Manufacture: • Computers/periph. • Communication equip. • Consumer electronics • ICT components • Manuf. Services Maintenance/repair • Of computers • Of telecom. equipment Originals IP products Product (CPC 2) • printed/text-based c/s. • M. picture, video, radio c/s. • Music c/s. • game software • On-line c/s. • sound recordings • motion pictures • radio/TV prog. • product design • Digital cameras • Other rec. media • Other originals not covered under content/ media sector

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