1 The OECD STAN Database 1 st World KLEMS Conference 19 th -20 th August 2010 Colin Webb OECD STI/EAS

2 The STAN family STAN – industry: Bilateral Trade by industry (STAN-BTD): Business Expenditure on R&D by industry (STAN-R&D or ANBERD): Input-Output tables (STAN-IO): derived set of STAN Indicators:

3 Origins of STAN Early 1990s - Measurement and Analysis of Embodied Technology Diffusion. Impact on Productivity. Papaconstantinou, Sakurai, Wyckoff Tools developed: Harmonised Industry x Industry I-O Tables for 10 countries (1970, 80, 90); Bilateral Trade by industry, R&D by industry and a STAN- industry database. Compatible ISIC Rev.2 industry lists R&D intensities calculated: direct R&D + R&D embodied in intermediates and GFCF both domestically produced and imported. By-product = Technology classification

4 STAN mid-1990s Manufactures only – from industries based on ISIC Rev. 2 7 measures – current price data only 16 OECD countries Primary source = SNA68 data Available to external users for US$ 290 Used for a range of STructural ANalyses and calculation of basic indicators

5 STAN today Covers whole economy – from About 100 industries based on ISIC Rev measures 30 OECD countries (data to 2008 for 24) Primary source = SNA93 data Distributed for free Rolling update (since 2000) STAN user distribution list (since 2000) Increased use for productivity analyses

6 Notable changes in source data since 1990s SNA 68 SNA 93 Classifications: NACE in EU, SIC NAICS. Valuation of SNA value added Basic prices SNA: Software investment Use of quality-adjusted hedonic deflators (ICT) SNA: Volumes: Fixed base Chained Laspeyres SNA: allocation of FISIM across industries EU: SNA activity detail; A17 A31 A60 (2-digit) Surveys: coverage, thresholds, definitions EU SBS units: establishments enterprises

7 STAN sources and updating cycle Update cycle starts in the summer – follows rhythm of releases of National Accounts by activity data –July –October: most EU countries + Korea and Mexico –November – January: Other non-EU OECD countries Most detailed SNA data provided directly by NSOs or via online extractions, but we may need to wait for –Replies to official OECD/Eurostat annual SNA questionnaire –Release of Industrial survey / census data (SSIS, SBS) –Supply-Use tables if more detailed current price data output than official SNA tables Vintage data (SNA68, ISIC Rev.2) used to make estimates for earlier years

8 STAN v. Similar industry list. Different country coverage. EU KLEMS: designed for advanced productivity analysis. Many more measures e.g. breakdown of intermediate inputs and labour inputs and a rich set of capital input estimates, but = heavier data requirements STAN: Frequent updates for a broader range of uses. STAN family includes R&D expenditure (ANBERD)... … and exports and imports of goods by industry STAN leaves gaps when no alternative data sources to make estimates. Also, has notes at cell level to distinguish estimates from official SNA data

9 STAN next steps Improved documentation New countries in STAN –New OECD members (Chile, Estonia, Israel, Slovenia) –OECD Enhanced Engagement Countries (Brazil, China, India, Indonesia and South Africa) + other G20? Implementation of ISIC Rev. 4 (NACE Rev.2) Also note: SNA08 (e.g. capitalisation of R&D) Develop closer operational links with EU KLEMS project (and World KLEMS?) particularly given forthcoming upheaval due to ISIC Rev. 4

10 ISIC Rev. 4 Published by UNSD in August 2008 Closer to NAICS than ISIC Rev. 3 EU countries adopting the related NACE Rev.2 Some other countries using derivatives (e.g. ANZSIC) Implementation at OECD driven by provision of NACE Rev 2. data by EU countries. SNA data according to NACE Rev.2 not expected before end-2011 – for many countries only from year 2000 and with limited industry detail EU Structural Business Statistics already published according to NACE Rev.2 (for 2008 only)

11 ISIC Rev. 4 – what we need New industry list(s) for STAN data sets (and EU KLEMS) Conversion tables from National SICs to ISIC Rev.4 ISIC Rev.4 to ISIC Rev.3 conversion key (transition period) ISIC Rev.3 to ISIC Rev.4 conversion key (historic data) Definition of special industry aggregates (e.g. High Tech. manufactures) HS to ISIC Rev.4 conversion for trade data (BTD) Minimum spread of first releases of OECD ISIC Rev. 4 data sets This will not be easy: Note that ISIC Rev.3 released in 1990, SNA 1993, but first STAN ISIC Rev.3 tables in 2000

12 OECDs general role International Standards – SNA, ISIC etc. Related methodology e.g. SNA08: measurement of R&D investment (c.f. software under SNA93) Guiding implementation – not only in OECD countries e.g. OECD/China SNA program Strong links with NSOs, Ministries, policy makers Dialogue – various Working Parties First line of data quality control Vintage / archived data sets (for OECD countries)

13 Final messages Compiling internationally comparable databases, such as STAN and EU KLEMS, is hard work but of immense value to economic researchers worldwide Its during times of major changes in classification and methodology, when there is limited coverage for official statistics, that such databases are most needed (c.f. ISIC Rev.2. Rev.3 / SNA68 SNA93) … … but most difficult to produce as longer time- series have to be imputed Advocate strong links between OECD and EU KLEMS / World KLEMS