Business Longitudinal Database and Business Characteristics Statistics How we got here (History) Where we are at (Current) and Where to from here (Future)

Over 10 years ago Business Longitudinal Survey had been conducted in the mid-1990s but cancelled in 1999 Strong user demand for it to be reinstated Early planning for the Business Longitudinal Database initiated

Why a BLD? Analysts and policy advisors are interested in understanding: –The activities or factors that are relevant to business performance and productivity –The business characteristics that are associated with these activities or factors Micro level (unit record) analysis over time is the best method of getting this understanding

The BLD vision Small dense BLD ~2,000 SME-sized businesses in each panel/wave with a combination of directly collected and administrative data, i.e. complete data for all businesses in the panel with a new panel each year plus some flexibility in design Large sparse BLD To be created using the ABS unit record data stores for all directly collected (irrespective of which survey) and administrative data, i.e. ATO data for all businesses plus data from other ABS surveys in which a business may have been included

The BLD is born New policy proposal successful in 2005 budget but………… First panel/wave initiated for financial year

In the meantime… As part of developing the BLD, the ABS reviewed of all of its characteristics type collections

ABS characteristics data collections Business Use of Information Technology – annual since early 1990s Innovation – a couple of collections in the 1990s and reinstated in 2002

Integrated Business Characteristics Strategy Bring together existing IT use and innovation collections with the new BLD direct collection component Get efficiencies from linked samples, common instruments and business processes Integrated data Reduction in provider load

Business Characteristics Survey introduced Core characteristics content Core IT use and innovation content Alternating IT use and innovation detail Capacity for a user funded module First integrated survey conducted in

Small dense BLD A new panel/wave each year Each panel/wave is in for five years Design is pretty simple: industry division by employment size (i.e.. The stratum) Aim to have 30 businesses still live in each stratum at the end of 5 years, overall ~ 2,000 businesses

BLD design 4 employment size groups Non-employers* 0-4 employees 5-19 employees employees 14** Industry Divisions Dominated by businesses which operate in the market sector of the economy * Not for all industry divisions ** Number is different dependent on version of ANZSIC

Panel 2 Panel 1 Panel 3 Panel 4 Panel 5 Panel 6 BLD – simple-structured micro, small and medium businesses ANZSIC 1993 based ANZSIC 2006 based Business Longitudinal Database Design

What is in the BLD? Direct collection – range of characteristics including: Employment Finances Working arrangements Performance monitoring Markets and completion Basic set of IT use and innovation indicators Financial Data from the ATO Business Activity Statement and Business Income Tax Trade data from Customs and Border Protection Service Value of goods imports and exports by basic commodity type

Outputs Business Longitudinal Database –Confidentialised Unit Record File: accessible through ABS website remote access data laboratory 2 have been released –Unconfidentialised Unit Record File: accessible to ABS employees only Analytical papers

Panel 2 Panel 1 Panel 3 Panel 4 Panel 5 Panel 6 Top-up for complex* and large businesses plus additional sample for accuracy of estimates *includes complex small and medium businesses Innovation, IT use and other businesscharacteristics point in time estimates Business Characteristics – point in time estimates

Innovation, IT Use and other Business Characteristics Statistics Key Innovation and IT use indicators collected every year (enables annual innovation rate to be released) Detail collected every second year

Outputs ABS publications Key indicators: annually IT use and Innovation: biennially (alternating topics) Other characteristics: annually (including most items cross-classified by innovator status)

What havent we done Purposive panels/waves Module – user funded content Include data in the BLD from other administrative sources Create the large sparse BLD

Analysis using BLD Analytical Services Branch Research Paper: Competition, Innovation and Productivity in Australian Businesses, Sep Research Paper: Business Innovation and the Use of Information and Communications Technology, Mar 2011 National Statistics Centre for Innovation and Technology Replicating Business Innovation and the Use of Information and Communications Technology Change in broadband connection speed and Productivity

Business Innovation & ICT Association between ICT usage and innovation Created and ICT Intensity Index based on ICT Sophistication Regression modelling (binary and ordered Probit modelling)

Results of Analysis Increased sophistication of ICT use –business significantly more likely to innovate –Held true for the different types of innovation –Also for various ICT Intensity Indexes (5) –More novel innovations –Multiple types of innovation –Develop Innovations internally

More Information: Innovation and Technology Statistics David Taylor Assistant Director NSC, Innovation and Technology Statistics Andrew Puljic - Assistant Director, Business Characteristics Helen Teasdale - Assistant Director, Research & Statistical Support