A Product Approach for ICT Satellite Accounts

1. A Product Approach forICT Satellite Accounts • OECD Working Party on National Accounts • Paris, 2-5 October 2007 presentation: Oda Schmalwasser oda.schmalwasser@destatis.de author: Ulrich Greiner ulrich.greiner@destatis.de

2. I. Satellite Systems and ICT in General What is a Satellite System like in general ? Shape of the Satellite System in question ? What is ICT ? →

3. I. Satellite Accounts and ICT in General • II. ICT by industries, an agreed definition based on ISIC rev.3 Manufacturing 3000 Office, accounting, computing machinery 3130 Insulated wire and cable 3210 Electronic components 3220 Transmitter devices for television, radio, telephone 3230 TV, video and radio devices 3312 Instruments and appliances for measuring … 3312 Industrial process control equipment Services 5150 Wholesale of machinery 7123 Renting of office machinery 6420 Telecommunications 7200 Computer related activities Source: Guide to measuring the Information Society, OECD, Nov. 2005

4. II. ICT by industries • IIIa. Definition of ICT by products 1 • ICT goods: • proposal • OECD • 220 items (HS) • ICT products (CPA) • ICT products • National IOT Classification • by products • 120 items • (most detailed) 220 • ICT services • by industries: • recommendation • OECD • 4 items 2 (NACE to CPA)

5. IIIa. Definition of ICT by products 1IIIb. Definition of ICT by products 2List of ICT products by division: • 22 Print and record media (small parts of) • 24 Chemicals (small parts of) • 25 Rubber and plastic (small parts of) • 30 Office machinery and computers (parts of) • 31 Electrical machinery (parts of) • 32 Telecommunication equipment (parts of) • 33 Precision instruments (parts of) • 35 Other transport equipment (small parts of) • 64 Post and telecommunication services (part of) • 72 Computer and related services (total) „typical“ ICT goods

6. III. Definition of ICT by products IV. Supply and Use Table of the Input-Output System: Framework for an ICT Satellite System Supply Table Use Table Output Imports Transition items ICT definition by products Intermediate Consumption Final Use Products Products Value Added

7. IV. Framework of ICT: Supply and Use TablesVa. Some findings: Output of ICT

8. Va. Some findings: Output of ICTVb. Some findings: Final Use of ICT

9. V. Some findingsVI. To Do List for ICT in Input-Output • SupplyTable: • Output • Imports • Use Table: • Final Consumption • FCF • Exports (all with and without imports) ? Transition to purchasers prices - Changes of Inventories ? Value Added ? Intermediate Consumption

10. VI. To Do List for ICTVII. Value Added of ICT Method 1 employing: a) Ratio of ICT Output to total Output by industry b) Total Value Added by industry Pro: Easy to perform Con: Does not correspond to Final Use of ICT Method 2 employing: a) Final Use of ICT less direct Imports, share by product groups b) Input-Output Table, Input-Output Analysis Pro: Corresponds to Final Use of ICT in principle Con: No special ICT-Input-Output table available yet

11. VII. Value Added of ICTVIII. What is left Transition from domestic supply to supply at purchasers prices Intermediate Consumption of ICT products Intermediate Consumption of ICT production feasible feasible challenging

12. VIII. What is leftIX. Summary • - ICT by products definition is operational for a satellite system • - ICT by industry definition and ICT by product definition • are differing considerably • - An ICT satellite system based on input-output can give • current overviews of ICT in the economy • - The satellite system is open to supplements which could • for example answer questions of productivity • To extend the framework of regular IOT • to a specific IOT of ICT is a challenging task