United Nations Statistics Division ICT, Information and Intellectual Property Products An overview of concepts and how they relate to the CPC Ver. 2

ISIC Rev.4 contain an alternative aggregate for an “ICT sector” definition and a “content and media” sector definition. Likewise, CPC Ver.2 comes with an alternative aggregate for the “information economy” product definition. These aggregates originates from the work of an OECD Working Party working in the context of developing indicators on the information society. (WPIIS) Their first ICT definition came out in Since then, development in NAICS and later ISIC have been important for driving the development of these sector and product definitions. In the development of these definitions, a number of concepts were defined and used. Background

3 In this presentation we will look at:In this presentation we will look at: the concepts and definitions used when talking about the information economy.the concepts and definitions used when talking about the information economy. what they meanwhat they mean how they differ from each otherhow they differ from each other how they interacthow they interact How the new Central Product Classification (CPC v2) relates to these concepts.How the new Central Product Classification (CPC v2) relates to these concepts. Scope of presentation

4 Why this presentation? The adoption of new ideas relating to the “information economy” in ISIC/CPC, has caused substantial changes in these classifications.The adoption of new ideas relating to the “information economy” in ISIC/CPC, has caused substantial changes in these classifications. introduction of new subclassesintroduction of new subclasses new concepts used in describing subclassesnew concepts used in describing subclasses changes in structurechanges in structure Some conceptual problems in CPC v1.1 (the previous version) and a rapid change in the actual productsSome conceptual problems in CPC v1.1 (the previous version) and a rapid change in the actual products distinction between original, content and provision services.distinction between original, content and provision services. emerging productsemerging products

5 Key concepts The Information Economy ICT Sector Content/Media Sector ICT Products OriginalsContent Intellectual Property Products

Product (CPC 2) Activity (ISIC 4) Information Economy ICT SECTOR CONTENT/MEDIA SECTOR

7 ICT sector defined by aggregating complete ISIC classes according to the following general principle:ICT sector defined by aggregating complete ISIC classes according to the following general principle: The production (goods and services) of a candidate industry must primarily be intended to fulfil or enable the function of information processing and communication by electronic means, including transmission and display.The production (goods and services) of a candidate industry must primarily be intended to fulfil or enable the function of information processing and communication by electronic means, including transmission and display. The industries considered were from manufacturing, trade, services and repair.The industries considered were from manufacturing, trade, services and repair. The ICT sector

Product (CPC 2) Activity (ISIC 4) Information Economy ICT SECTOR CONTENT/MEDIA SECTOR Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq.

9 It was early recognized that the scope of the “information economy” ought to be extended beyond that of the ICT sector.It was early recognized that the scope of the “information economy” ought to be extended beyond that of the ICT sector. Content and media industries are engaged in the production, publishing and/or the electronic distribution of content products.Content and media industries are engaged in the production, publishing and/or the electronic distribution of content products. Guidelines for identifying a content or media product (OECD): “Content corresponds to an organised message intended for human beings published in mass communication media and related media activities. The value of such a product to the consumer does not lie in its tangible qualities but in its information, educational, cultural or entertainment content”Guidelines for identifying a content or media product (OECD): “Content corresponds to an organised message intended for human beings published in mass communication media and related media activities. The value of such a product to the consumer does not lie in its tangible qualities but in its information, educational, cultural or entertainment content” The content/media sector are industries that create and disseminate mass market information and cultural products; the ICT sector provides the means for doing so.The content/media sector are industries that create and disseminate mass market information and cultural products; the ICT sector provides the means for doing so. In ISIC 4, all of the content/media sector is contained within ISIC section J: “Information and communication”In ISIC 4, all of the content/media sector is contained within ISIC section J: “Information and communication” The content/media sector

Product (CPC 2) Activity (ISIC 4) Information Economy CONTENT/MEDIA SECTOR Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc.

11 The new section J in ISIC is called “Information and communication”The new section J in ISIC is called “Information and communication” It covers major parts of the “Information Economy”It covers major parts of the “Information Economy”  All of the content/media sector  The services part of the ICT sector (i.e., not including manufacture, wolesale trade and repair) ISIC Section J

Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ISIC J (58-63)

13 When defining the products of the Information Economy, the guiding principle was that they should be the output of the Information Economy sectors (ICT and content/media).When defining the products of the Information Economy, the guiding principle was that they should be the output of the Information Economy sectors (ICT and content/media). This approach facilitates consistency between product statistics and industry statisticsThis approach facilitates consistency between product statistics and industry statistics Products of the Information Economy

14 The ICT products (left side of diagram) were identified as those primarily intended to fulfil or enable the function of information processing.The ICT products (left side of diagram) were identified as those primarily intended to fulfil or enable the function of information processing. This is generally (but not always) the products from the ICT sector.This is generally (but not always) the products from the ICT sector. The ICT product definition does not have a specific goods/services split.The ICT product definition does not have a specific goods/services split. ICT products

Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ICT PRODUCTS Electrical capacitors, resistors and their parts Wholesale trade services Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services Maintenance/repair Of computers Of telecom. equipment Digital cameras Other rec. media Leasing/rental of ICT equipment Services: Business/prod. software All software originals IT consultancy Telecom. services ISIC J (58-63)

16 These products embody an organized message intended for human beings and mass publishing, or related media activities. Its value lies in its information content, not its physical form.These products embody an organized message intended for human beings and mass publishing, or related media activities. Its value lies in its information content, not its physical form. Generally, products coming out of the content/media sector (but also a handful from the ICT sector and from outside)Generally, products coming out of the content/media sector (but also a handful from the ICT sector and from outside) Major components are:Major components are: originalsoriginals contentcontent related servicesrelated services “Content/media products”

Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ICT PRODUCTS Electrical capacitors, resistors and their parts Wholesale trade services Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services Maintenance/repair Of computers Of telecom. equipment Digital cameras Other rec. media Leasing/rental of ICT equipment Services: Business/prod. software All software originals IT consultancy Telecom. services CONTENT/MEDIA PRODUCTS Originals Content/serv. ISIC J (58-63)

18 The output of a intellectual / creative activity may be considered a service or an originalThe output of a intellectual / creative activity may be considered a service or an original When the activity is carried out for another party, a service is being provided.When the activity is carried out for another party, a service is being provided. When the output of the creative activity is not carried out for someone else, the output is an original.When the output of the creative activity is not carried out for someone else, the output is an original. Originals  servicesOriginals  services Originals  copiesOriginals  copies This distinction is also made in the SNA.This distinction is also made in the SNA. OriginalsOriginals

19 Examples of intellectual / creative activitiesExamples of intellectual / creative activities writing of manuscripts and other textswriting of manuscripts and other texts audiovisual productionsaudiovisual productions music compositionmusic composition music performancemusic performance research activitiesresearch activities product design activitiesproduct design activities geological surveysgeological surveys Originals (continued)‏

Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ICT PRODUCTS Electrical capacitors, resistors and their parts Wholesale trade services Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services Maintenance/repair Of computers Of telecom. equipment Digital cameras Other rec. media Leasing/rental of ICT equipment Services: Business/prod. software All software originals IT consultancy Telecom. services CONTENT/MEDIA PRODUCTS Originals Content/serv. sound recordings motion pictures radio/TV prog. product design Original works of authors, composers, etc. ISIC J (58-63)

21 The reproduction, in some form, of an original, regardless of physical mediaThe reproduction, in some form, of an original, regardless of physical media In general, most of the value is in the information content, not the device.In general, most of the value is in the information content, not the device. A copy of content is a product.A copy of content is a product. The System of National Accounts uses the concept of “copies”The System of National Accounts uses the concept of “copies” ContentContent

Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ICT PRODUCTS Electrical capacitors, resistors and their parts Wholesale trade services Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services Maintenance/repair Of computers Of telecom. equipment Digital cameras Other rec. media Leasing/rental of ICT equipment Services: Business/prod. software All software originals Licensing of software IT consultancy Telecom. Services CONTENT/MEDIA PRODUCTS Originals Content/serv. sound recordings motion pictures radio/TV prog. product design Original works of authors, composers, etc. printed/text-based c/s. M. picture, video, radio c/s. Music c/s. game software On-line c/s. ISIC J (58-63)

23 According to the System of National Accounts: “Intellectual property products are the result of research, development, investigation or innovation leading to knowledge that the developer can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection.”According to the System of National Accounts: “Intellectual property products are the result of research, development, investigation or innovation leading to knowledge that the developer can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection.” Specific forms mentioned are products from:Specific forms mentioned are products from: Research and developmentResearch and development Mineral exploration and evaluationMineral exploration and evaluation Computer software and databasesComputer software and databases Entertainment, literary or artistic originalsEntertainment, literary or artistic originals Uses the notion of “originals” and “copies”Uses the notion of “originals” and “copies” Intellectual Property (IP) products

Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ICT PRODUCTS Electrical capacitors, resistors and their parts Wholesale trade services Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services Maintenance/repair Of computers Of telecom. equipment Digital cameras Other rec. media Leasing/rental of ICT equipment Services: Business/prod. software All software originals Licensing of software IT consultancy Telecom. Services CONTENT/MEDIA PRODUCTS Originals Content/serv. sound recordings motion pictures radio/TV prog. product design Original works of authors, composers, etc. printed/text-based c/s. M. picture, video, radio c/s. Music c/s. game software On-line c/s. IP products Other originals not covered under content/ media sector ISIC J (58-63)

25 Some of them are neither goods nor services, but “IP products and similar products”Some of them are neither goods nor services, but “IP products and similar products” Sections 0-4 limited to transportable goods classified in the HS.Sections 0-4 limited to transportable goods classified in the HS. These intangible goods have therefore been classified in section 5-9, close to the services that are outputs of the same ISIC industries as the intangible goods.These intangible goods have therefore been classified in section 5-9, close to the services that are outputs of the same ISIC industries as the intangible goods. Content/media products in the CPC?

26 OriginalsOriginals Close to the related services, found in part 5-9Close to the related services, found in part 5-9 ContentContent Content on physical media: in the related products found in part 0-4.Content on physical media: in the related products found in part 0-4. Content not on physical media (downloadable) group: “On-line content”Content not on physical media (downloadable) group: “On-line content” Content/media products in the CPC? (continued)

27 New detail added for information productsNew detail added for information products BooksBooks softwaresoftware audio/video tapesaudio/video tapes CPC v2 sometimes goes beyond HS in detail.CPC v2 sometimes goes beyond HS in detail. Pre-existing products

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Product (CPC 2) Activity (ISIC 4) Information Economy Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media Wholesale trade: Computers/peripherals Electronic and telecom. equipment Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishing Repair Computers Communication eq. ICT SECTOR Publishing of: Books Directories and mailing lists Newspapers and journals Motion picture, video and TV progr. Production and post-production Distribution and projection Sound recording and music publishing Radio/TV progr. and broadcasting Other information services News agency activities, etc. CONTENT/MEDIA SECTOR ICT PRODUCTS Electrical capacitors, resistors and their parts Wholesale trade services Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services Maintenance/repair Of computers Of telecom. equipment Digital cameras Other rec. media Leasing/rental of ICT equipment Services: Business/prod. software All software originals Licensing of software IT consultancy Telecom. Services CONTENT/MEDIA PRODUCTS Originals Content/serv. sound recordings motion pictures radio/TV prog. product design Original works of authors, composers, etc. printed/text-based c/s. M. picture, video, radio c/s. Music c/s. game software On-line c/s. IP products Other originals not covered under content/ media sector ISIC J (58-63)