Contact: nadim.ahmad@oecd.org Handbook on Deriving Capital Measures of Intellectual Property Products Key recommendations National Accounts Working Party Meeting Paris 4-6 November 2009 Contact: nadim.ahmad@oecd.org

Background Recognition of R&D as an asset in the 2008 SNA Creation of OECD and Eurostat Task Forces to develop practical guidance. And the development of the Handbook

Summary Guidelines on 4 key types of IPP: R&D Software and databases Mineral exploration and evaluation Entertainment, artistic and literary originals

Key recommendations Licenses to use – reconfirmation of Canberra group recommendations concerning licenses to use for more than one year (and not intention to use) Licenses to reproduce – Change from the 1993 SNA. Should be recorded as whole or part sale of the original and IC otherwise. Own-account production – record the costs as GFCF as they occur. Unsuccessful originals – should be depreciated like successful originals, (pragmatic).

Key recommendations Freely available IPPs Source of considerable debate for non-market R&D: Two views emerged: Only R&D where government was a user of the asset All R&D produced by government:– public good. Both had merit but international comparability best obtained by (b) - also simpler

Practical guidance R&D Software Mineral exploration and evaluation Handbook provides detailed guidance on bridging FM with SNA concept. (Tables 2.3 and 2.4) And description of surveys that could be used by NSOs for SNA based collection. Software Mineral exploration and evaluation Entertainment, artistic, literary originals – Eurostat Task Force

Further work International Trade Lack of detail in current classification systems presents problems but increased detail in MSITS 2010 should improve the situation. However IPP trade between affiliates remains problematic

Further work Cross border sales or licence agreements of IPPs between affiliated enterprises. Cross border Capital transfers of IPPs between affiliated enterprises.   IPPs provided by parents to foreign subsidiaries without a fee but with the expectation of receiving property income in the future. IPPs provided by foreign subsidiaries to parents without a fee but in response to previous foreign direct investment. Issues: ‘at-length market prices’; changes to capital stock of IPPs;