ICT sector statistics Measurement issues, Indicators and Policy relevance WSIS Forum 2011 Geneva, 17 May 2011 Pierre Montagnier, OECD 1 Outline Q Conceptual framework and historical background Q Definition and evolution Q Indicators Q Policy relevance 2 1 A conceptual framework ICT supply (producers and production) Which industries? Constitute the ICT sector Which entities? Produce ICT goods and services About them? Industry, size, other characteristics About their products? Type of, and revenue from, ICT goods and services produced How much? Expenditure, wages & salaries, income, profit, value added, capital expenditure g Business demographics, How long? g p , established vs new entities Employment? How many persons are employed, their occupations, qualifications, gender; demand for skills Where? Location of operations, customers, suppliers Innovation Innovative activities of producers (patenting, R&D) What impacts? On the entity, economy, society ICT demand (users and uses) ICT infrastructure Investment and services on which the Information Society relies ICT products Definitions and classifications Imports and exports Price and quality Which entities? Use ICT G&S About them? Industry, size, socio-demographic and labour force characteristics etc. Which activities? Use of the Internet, e-business, e-commerce How? Technologies used, means of Internet access, changes in technology, IT security measures How much? E-commerce income and expenditure, ICT expenditure and investment When? Most recent use, when started using, frequency, time use patterns Employment? Use of ICT by those employed, ICT specialists and generalists, demand for skills, nature of work affected by ICT Where? Location of users, customers, suppliers Why? Why not? Motivations and barriers Information and electronic content Definitions and classifications Producers and products Users and uses ICT in a wider context........ Social and economic factors affecting ICT use and development Effect of domestic policy and regulatory environment on ICT use and development Influences of ICT on society, the economy and the natural environment Global factors and relationships 3 Historical background Sectoral definitions First ICT sector Definition Revised ICT sector Definition Second ICT sector Definition (based on ISIC rev.3) (based on ISIC rev.3.1) (based on a late draft of ISIC rev.4) First Content and media sector Definition (based on a late draft of ISIC rev.4) 1998 2002 2003 2007 First ICT Goods classification First ICT Services classification First Content and Media Product classif. (based on an early draft of CPC ver.2) (based on an late draft of CPC ver.2) (based on HS 1996/2002) 2008 2010 Revision to 2007 ICT services (based on an late draft of CPC ver.2) Second ICT goods classification ICT product Information Economy product (based on an late draft of CPC ver.2) Product definitions 4 2 ICT sector definition and evolution Q An operational definition 2 stage approach to develop an industry based definition with i/ a focus on industries and ii/ a product-based definition which will in turn be used to refine the industry definition Q A set of principles for ICT industries: ¾For manufacturing industries, the products of a candidate industry must: be intended to fulfil the function of information processing and communication, including transmission and display; or use electronic processing to detect, measure and/or record physical phenomena, or to control a physical process. Components primarily intended for use in such products are also included. ¾For service industries, the products of a candidate industry must be intended to enable the function of information processing and communication by electronic means. Deleted with the 2007 revision Q In a decade decade, less manufacturing and more services 1998 2002 2007 manufacturing 7 7 5 services 9 11 14 5 ICT sector selected Indicators 6 3 Share of ICT value added in business sector value added, selected OECD countries, 1995-2008 % 1995 2008 14 12 10 8 6 4 2 0 (*) OECD aggregate based on estimates for 28 countries. ** 6420 (Telecommunications) not included. 7 Source: OECD, 2010 Growth of ICT sector and total employment in the OECD area Index 1995=100, compound annual growth rate (%) 150 ICT services 2.7% 140 130 Services 1.6% 120 Total ICT 1.3% Total business sector 0.9% 110 100 Manufacturing -1.0% ICT manufact. - 1.3% 90 80 70 60 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: OECD, 2010 8 4 Labour productivity growth in ICT and total industries in selected OECD countries, 1995-2008 Total industries labour productivity growth ICT labour productivity growth Annual average growth rate (%) 12 10 8 6 4 2 0 Source: OECD, STAN database. 9 ICT related Patents, 2006-2008 % of national PCT filings 60 50 40 30 20 10 7 EU 2 ce Fr an m do Kin g ite d Un St at ite d Un OE CD es n de Sw e da na Ca an Ja p ea Ko r ina Ch d lan Fin Si ng ap or e 0 Source: OECD, Patent Database, 2011. 10 5 ICT sector measurement is of high policy relevance Q The economy of a country benefits from ICT in 2 ways: ¾As ICT producer. ¾A d ICT sector t itself it lf generates t growth, th productivity and innovation ¾ As ICT user. ICT use increases the efficiency of production processes Q Pillar for many indicators and key to better understand effects on: ¾Productivity ¾ Innovation ¾ Competitiveness ¾ Growth 11 Thank You for your attention Pierre Montagnier Economic Analysis and Statistics Division pierre.montagnier@oecd.org 12 6