CSO Enterprise Statistics Liaison Group Jonathan Healy Senior Economist 23/11/11 Forfás Surveys: Background ►Forfás has dedicated Surveys Unit (4.5 staff) ►Collects enterprise data on Agency clients as per Forfás remit in Industrial Development Act (1993) ►Collects R&D data to fulfil national and international data obligations Institutional Arrangements for Enterprise Policy Government Departments (Department of Jobs, Enterprise and Innovation in particular) Forfás Policy Advisory Board for Enterprise, Trade, Science Technology and Innovation Science IDA Ireland Enterprise Ireland Shannon Development Udaras na Gaeltachta Main agency responsible for direct foreign investment Main agency responsible for Irish industry Responsible for economic development in Shannon area Promotion of economic development in the Gaeltacht Base of 3,000 core clients Base of 100 firms > 10 employees Base of 250 firms > 10 employees Base of 750 firms >10 employees Overview of Forfás Surveys ►Enterprise • Annual Business Survey of Economic Impact • Annual Employment Survey ►S&T • Science Budget (GovERD / GBAORD) • Higher Education R&D (HERD) • Business Expenditure on R&D (BERD) with CSO • Community Innovation Survey (CIS) with CSO 1.Annual Business Survey of Economic Impact ABSEI ► Tracks performance of Agency-assisted firms ► Since 2000 (succeeded the IEE survey) ► Variables relating to the output of firms and expenditure by these firms in the economy ► Information yielded is a key input into a framework of performance indicators designed to assess the economic contribution of agency-assisted firms ► Data on individual firms are also used by the agencies in their day-to-day working relationship with their clients ► Forfás co-ordinates survey across the 4 agencies and maintains survey’s integrity. ► Consultants hired to undertake survey (send and collect questionnaires, aggregation of results, etc.) ABSEI Methodology ► Data collection via postal questionnaire and electronic option (from 2011) ► Survey population is client base of each of the development agencies with 10 + employees operating within manufacturing and internationally traded services Agency Enterprise Ireland IDA Ireland Shannon Development Údarás na Gaeltachta Total 3,000 750 100 250 4,100 ABSEI Core Variables ►4-page questionnaire covering: Sales and Exports Domestic sales Export sales Detailed country by country breakdown of destination of exports Share of sales accounted for by new products Payroll Costs and Workforce Total wages and salaries Number of employees Materials and Services Cost of all materials and components Proportion of materials produced in Ireland Cost of all bought-in services Proportion of services sourced in Ireland Other expense items from profit and loss account Corporation Tax Corporation tax payments and estimates for future years R&D Expenditure Persons employed on in-house R&D Expenditure on in-house R&D Expenditure on sub-contracted R&D Training Expenditure Expenditure on formal, structured training Breakdown of Results ► As well as producing aggregate information for each agency, disaggregated results are produced: Industry Sector Nationality of ownership Region Breakdowns using NACE Rev 2 classification into approx. 21 groupings (e.g. Food, Drink and Tobacco; Textiles and Clothing etc.) Breakdown between Irish-owned and Foreign-owned firms Breakdown into regional groups as appropriate (Dublin, Rest of Southern and Eastern region, BMW region) ► Response rate typically ~ 60%, so this enables good disaggregation ► Extremely high level of follow-up required to achieve 60% rate ABSEI Methodology 1. Initial mail-out 2. Follow-up 3. Data management and validation 4. Weighting 5. Data Analysis Data Validations 1. Initial visual screening of each survey 2. Data entry of cleared surveys into customised data repository 3. Internal review of validation sheets prior to agency validation 4. Validation meetings with agencies (2 weeks) to double check returns with relevant Development Advisors (DAs) and to flag non-response firms for follow up with DAs 5. Agency reviews of preliminary weighted results in advance of final tables Weighting of Data ► Weighting scheme devised by consultants to take account of non-respondents ► The following variables are used to stratify each company into homogeneous groups; agency, sector/department, size, region, relationship and nationality ► Employment data (gathered from Forfás Annual Employment Survey) used to weight up for nonrespondents within each stratum Timeframe ►EI questionnaires sent by end-December ►All others by end-March ►Results provided to Forfás by endSeptember ►Presented to Forfás Board October ►Publication by end of year (T+12 months) Summary Results of 2010 ABSEI S.1. Summary Table of Headline Indicators for the 2010 ABSEI 2010 (€billions) Foreign- Irish- owned Owned Sales 118.88 27.18 Exports 114.63 Value Added Direct Expenditure Share of total, 2010 All Foreign- Irish- All owned Owned 146.06 81% 19% 100% 12.37 126.99 90% 10% 100% 52.74 11.18 63.92 83% 17% 100% 17.95 17.00 34.95 51% 49% 100% Year-on-year difference in exports and domestic sales growth 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (e) Growth in exports Growth in domestic sales Irish Economy Expenditure 30% 20% 10% 0% -10% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -20% -30% -40% Payroll Irish Materials Irish Services Export Sales and Irish Economy Spend 140 120 € billion 100 80 60 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Exports Direct Expenditure in the Irish Economy Exports as % of Total Sales of Irish Firms by Sector 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 Total - All Sectors 2005 2006 2007 2008 2009 2010 Food/Drink/Tobacco Traditional Manufacturing Modern Manufacturing & Energy Information, Communications & Computer Business , Financial & Other Services 2011(e) 2. Annual Employment Survey AES: Overview ► Annual census of employment in all manufacturing and services companies supported by development agencies ► The survey takes place in October and November ► ~8,000 questionnaires are posted to relevant firms ► Clients are asked to make an accurate estimation of Permanent Full-time Jobs and ‘Other Jobs’ as at 31 October of that year ► Survey has been carried out each year since 1973 ► Results are used to inform the Development Agencies’ End of Year Statements and Annual Reports as well as to inform policy analysis conducted by Forfás AES (cont’d) ► Regional, sectoral, Agency, and time-series analysis undertaken ► Variables include: Job Gains, Losses, Net Change, 1st-time jobs, PFT/TPT ► Results can be disaggregated to a fine level (DED/ county, NACE) due to high response rate (>85%) with non-responses imputed by DAs ► ESS database used throughout year for analysis, including PQs Sectoral Proportions in Permanent/ FT Employment within Irish Agency-Assisted Firms: 2001-Vs-2010 Business , Financia l and Other Services 9% Cons, Utilities and Primary Producti on 5% Info, Comms, and Comput er Services 12% Business, Financial and Other Services 18% M'facturi ng 74% 2001 Construc tion, Utilities and Primary Producti on 6% Informat ion, Comms, and Compute r Services 14% 2010 M'facturi ng 62% Stats at a Glance ► Key Forfás Enterprise and R&D Stats published in Forfás Statistics at a Glance publications 1. Economic Context and Output 2. International Exports of Goods & Services 3. International Imports of Goods & Services 4. Direct Investment (ODI/FDI) 5. National Expenditure on R&D 6. Expenditure on R&D by Sector: Business, Higher Education and Public 7. R&D Workforce 8. Innovation Stats 9. Other S&T Indicators For more information ►www.forfas.ie/publications ►Jonathan.Healy@forfas.ie