OECD
World
Forum
onon
Key
Indicators
OECD
World
Forum
Key
Indicators
Statistics,
Statistics,Knowledge
Knowledgeand
andPolicy
Policy
Palermo,
10-13
November
2004
Palermo,
10-13
November
2004
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
1
International Benchmarking as a
Tool for Regional Policy Making:
Experiences and Challenges
Christoph Koellreuter
Managing Director and Chief economist
BAK Basel Economics
www.bakbasel.com
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
2
Contents
1.
Facing globalisation challenges: Regional level particularly important
2.
International Regional Benchmarking:
a necessary tool for regional policy making
in an increasingly competitive world
3.
An example of International Regional Benchmarking:
the IBC BAK International Benchmark Club®
4.
Using International Regional Benchmarking in Regional Policy Making
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
3
1.
Facing globalisation challenges:
Regional level particularly important
• Continuous product and process innovation = the only successful way
of high wage economies to meet the challenge of low cost competitors
• Innovation activity = takes place where there is a spatial concentration
of companies of the same and related industries (clusters)
• High private productivity = i.e. internalisation of cluster specific externalities
only if individuals and companies are based in the region
• Conclusion: policies = have to focus on maintaining and / or improving
innovation friendly framework conditions at the regional level
• Region = economic region in the sense of an innovation, labour market or
functional urban region
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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2.
International Regional Benchmarking:
what gets measured gets done!
• What is meant by benchmarking in general? = comparison / positioning in
relation to a specific reference point (generally : “the best in class”)
• Why is benchmarking so important today? In a world having become so much
more competitive, decision makers have to know and monitor their competitors
(specialized in the same type of economic activity)
• What is quantitative international regional benchmarking? = benchmarking
of economic, ecological and societal performance and policy variables as well as
the relationship between the two at the level of regions
• What is expected from quantitative international regional benchmarking?
More precise knowledge about
• regional strengths and weaknesses
• regional opportunities and threats
• quantitative impact of policies on economic growth, employment productivity,
the environment and society of the region
• The ultimate hope of an international regional “benchmarker”:
WHAT GETS MEASURED GETS DONE !
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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3.
An example of Regional Benchmarking:
the IBC BAK International Benchmark Club®
1.
What should be measured?
2.
Quantitative assessment of the impact of policy variables on economic growth,
productivity and employment: the analytical concept
3.
Actual offer of BAK Basel Economics and perspectives for 2005
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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What should be measured?
• Economic performance
• Gross value added
• Hours worked
• Employment
• Output per manhour
Complemented with variables of performance of the environment and the society
( = sustainable development).
Necessary differentiation
• regions
• industries
• Policy variables
Determining economic growth, productivity and employment:
see analytical concept below
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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Quantitative assessment: the impact of policy variables on economic growth
Regionales Benchmarking von BAK Basel Economics:
(at the regional, national and industry level): the BAK analytical concept
Analyserahmen für nationale und regionale Volkswirtschaften sowie Branchen
Stand August 2003
Economic
performance
Labour productivity
Labour supply
(Real Gross Value Added
per man hour)
Human capital
ICT-Capital
OECD/CATO
Regulation indices
(national)
Demography
Resident population
Customer capital
Population of
working age
Capital markets
Education
expenditure,
expenditure for R+D
(national, regional)
Monetary policy
Product markets
Process capital
(start-up
companies)
Employees
as % of
resident population
Exchange rate
policy
Non-ICTCapital
(share of
employees with
tertiary
education)
Knowledge
capital
(patents and
bibliometric
indicatros)
Hours worked
per employee
Control of the phenomenon of
business cycles / demand
Investment
in intangible
capital
External demand
Investment
in physical
capital
GDP
per capita
Fiscal policy
Capital stocks
(in man hours worked)
(differentiated by
country, region or
sector)
Efficiency of
factor use
(total factor
productivity)
Policy
variables
GDP /
Gross Value Added
Labour markets
Incicators of
accessibility
Education policies.
Regulation of
Transportation policy,
science policy,
product markets
infrastructure policy
OECD World Forum “Statistics, Knowledge and Policy”,
Palermo,policy
10-13 November 2004
technology
Taxation of
companies
highly
Source:and
IBC
Module
skilled manpower
(national, regional)
Tax and social
policies
OECD/CATO
Determinants
2003
Regulation indices
(national)
Regulation of
labour markets
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The Offer of BAK Basel Economics: Overview
• Exclusive databases
• Performance: more differentiated with respect to regions and regional
industries as well as more up-to-date than official statistics
(Switzerland: BAK Basel Economics is the only supplier of these data,
no official source available)
• Policy variables: generally in cooperation with renowned institutions
in Europe
• Exclusive information and communication platform for regions in Europe:
the annual forum of the IBC BAK International Benchmark Club® taking place
in June in Basel, Switzerland.
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The Offer of BAK Basel Economics: Overview
Continuation
• Region specific presentations, reports and platforms, i.e.
• Cologne: its economic profile and perspectives in the global market place
(Cologne, November 2004)
• The Zurich Benchmarking Forum (Zurich, November 2004)
• Financial services as drivers of metropolitan economic growth
(London, September 2004)
• Massachusetts and Basel / Switzerland: Two world class (Life) science based
economies (Boston / Basel, Switzerland, September 2004)
• Regional benchmarking as a tool for Scottish economic policy
(Edinborough, February 2004)
• The region of Veneto facing the challenges of globalisation
(Venice, December 2003)
• International competitiveness of the Austrian federal states
(Vienna, September 2003)
• International competitiveness of the Lorraine Region (Metz, February 2003)
• Reports on specific policy issues, i.e.
«The international accessibility of Switzerland in danger?»
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The Offer of BAK Basel Economics: Overview
Continuation
• Research project «The impact of policy variables on economic growth
of regions»
start: autumn 2003, first major interim report: autumn 2005
Expected results should enable us to give answers to the following questions:
i.e. What leads to more economic growth:
• a billion Euro more in transportation infrastructure or a billion Euro more
for basic research?
• Tax reduction for companies or tax reduction of the same size for highly
qualified manpower?
• Later on:
Invitation to University institutes specialized in quantitative economic research
to participate in this type of research with the support of a foundation
(“Regiometrics”) still to be launched
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The Offer of BAK Basel Economics: Overview
Continuation
• Medium to longer term quantitative scenarios of development of the
regional and national growth potential
on the basis of the results of the research project “Impact of policy variables
on economic growth of regions” as of autumn 2005:
• on the basis of the political status quo
• on the basis of alternative sets of assumptions regarding policy variables
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The IBC Performance Database
Regions
350 regions in 18 EU-countries, Switzerland, Norway
and United States at the NUTS 1 and 2 level; for the
Extended European Alpine space (Southeast and
Eastern France, Baden-Württemberg, Bavaria, Austria,
Northern Italy and Switzerland) generally also at the
NUTS 3 level
Industries
60 industries in the above mentioned 350 regions
Variables of economic
performance of national/
regional economies as
well as the 60 industries
Gross value added at current, constant prices as well
as industry specific purchasing power parities,
employment, hours worked, output per man hour,
labour cost and unit labour cost
Variables of the
performance of the
environment and society
for regions in the Extended Alpine Space as a part of
project MARS «Monitoring the Alpine Regions’
Sustainability» led by the Lead Partner BAK Basel
Economics in the framework of the Interreg IIIB
programme Alpine Space of the European Commission
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The IBC Policy Variables Database
Policy area «INNOVATION»:
Education, science and technology policy
Indicators:
Innovation resources:
• Expenditure on research and development as percent of regional GDP
• Sum of scores of Shanghai Index of the research quality of the 500 best
universities in the world
• Part of employment with tertiary education (total and by industry)
• Part of employment with secondary education (total and by industry)
Innovation processes:
• Patents (total and by industry)
• Bibliometric indicators (total and by research field)
• Company start-ups (total and by industry)
Coverage end of 2004:
140 regions in 21 countries
Partner institutes:
ISI Fraunhofer Institut, Karlsruhe
Dun & Bradstreet
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The IBC Policy Variables Database
Continuation
Policy area «TAXATION»:
Fiscal and social policy
Indicators:
Tax burden of companies and highly qualified manpower
Coverage end of 2004: 65 regions in 21 countries
Partner institute:
ZEW Center for European Economic Research,
Mannheim
Policy area «REGULATIONS»:
Regulatory policies
Indicators:
OECD Regulation Indices for product and labour markets;
backward and forward extrapolation with the CATO
Indices for Economic Freedom
Coverage end of 2004: 21 countries
Policy area «ACCESSIBILITY»:
Transport and infrastructure policy
Indicators:
Indicators of intercontinental and interregional
(European) accessibility
Coverage end of 2004: 250 regions in 21 countries
Partner Institute:
IVT Institute for Transport Planning and Systems
of ETH Federal Polytechnical Institute, Zürich
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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Possible extensions of the
IBC Policy Variables Database
• Intraregional accessibility
• Regional land use regulations
• Structure of government: indicators of political fragmentation and the degree of
centralization / decentralization
• Culture
• Social capital
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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The IBC Sectoral Databases
Benchmarking of tourism
Tourism specific variables of performance and determinants for 25 Alpine Holiday
Regions and 20 European cities
Monitoring Life Sciences Locations
Life Science specific performance variables and determinants for 15 countries and
15 Life Science regions
Benchmarking of investment goods industries locations
Investment goods industries specific performance variables and determinants for
selected regions in Western Europe, North America, Central and Eastern Europe
Monitoring Financial Services Locations
Still open
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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4.
Using International Regional Benchmarking
in Region Policy Making
Used by whom?
• Representatives of public bodies at the national, regional, sub regional level as
well as industry associations, companies and other parties interested in
influencing policy decisions at the regional and national level
• Last but not least: citizens of regions and countries
Used for what?
• SWOT analyses
• Elaboration and evaluation of regional visions and strategies
• Introduction of more objectivity into the discussion of location and
competitiveness related issues
• As an input into lobbying of the region at the upper level government
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004
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