1 Capitalisation of R&D Report of R&D Task Force Charles Aspden Working Party on National Accounts, October 2006.

Slides:



Advertisements
Similar presentations
KLEMS, the ESA, and Eurostat Jukka Jalava Unit C2: National accounts – Production Eurostat/European Commission.
Advertisements

2008 SNA CURRENT SITUATION Presentation to the 12 th OECD-NBS Workshop on National Accounts October 2008.
1 Progress report on Expert Groups on micro and macro household statistics WPNA meeting October 2011 Maryse FESSEAU (OECD – Statistic Directorate, National.
1 « June, 6 and 7, 2007 Paris « Satellite Account for Education for Portugal: Implementation process and links with the National Accounts and Questionnaire.
ESTAT/C/1 08/02/ :37 Slide: 1 Commission Européenne - Eurostat Revision of ESA 95 Planning and Process OECD Working Party on National Accounts October.
STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Globalisation cube on OECD.Stat Pulling it all together.
Working Party on National Accounts, OECD – 4-6 November 2009 Update on PPP programme and new data set for health expenditure Paul Schreyer OECD.
1 1 Balancing supply-use tables Ann Lisbet Brathaug Steinar Todsen Statistics Norway OECD WP NA October 2006.
Quarterly GDP compilation at NBS
1 Paris 6-7 June nd workshop Measuring Education and Health volume output François LEQUILLER, OECD/STD/NAFS Measuring Education and Health volume.
1 Measurement of Production of Financial Institutions Conclusions and recommendations 3-10 by the OECD Task Force on Financial Services (Banking Services)
The BEA-NSF R&D Satellite Accounts, 2007 Results and Current Challenges Carol E. Moylan Bureau of Economic Analysis OECD Working Party on National Accounts.
1 International Workshop on Regional Products and Income Accounts, Beijing, China, March 2010 Country Presentation -India By National Accounts Division.
Extending the asset boundary to include Research and Development Issues 9 and 10 Charles Aspden OECD.
Implementation of 2008 SNA in Jamaica. Outline Policy issues - relationship with national accounts framework The Jamaican System of National Accounts.
Slide 1 Design in Innovation Coming out from the Shadow of R&D Bruce Tether Centre for Research on Innovation & Competition and Manchester Business School,
Measuring the Economy’s Performance
1 Goods for processing Training Workshop on 2008 SNA for ECO Member States October 2012, Tehran, Islamic Republic of Iran GULAB SINGH United Nations.
BASIC RESEARCH VS COMMERCIAL RESEARCH Dr Jean-Dominique WAHICHE Museum national d’histoire naturelle, Paris – France.
Financial Reporting changes for FReM compliant entities Fact Sheet Overview This Fact Sheet highlights the key changes in the HM Treasury.
1 Volume measures and Rebasing of National Accounts Training Workshop on System of National Accounts for ECO Member Countries October 2012, Tehran,
Overview 2008 SNA (cont’d) Training Workshop on System of National Accounts for ECO Member Countries October 2012, Tehran, Islamic Republic of Iran.
1 1 Capitalisation of R&D in the national accounts Ann Lisbet Brathaug Head of National accounts Statistics Norway
PRIME MINISTRY REPUBLIC OF TURKEY TURKISH STATISTICAL INSTITUTE TurkStat NATIONAL ACCOUNTS IN TURKEY 1 TurkStat.
R&D as a Value Creating Asset Emma Edworthy Gavin Wallis.
1 Research and Experimental Development (R&D) in 2008 SNA Training Workshop on 2008 SNA for ECO Member States October 2012, Tehran, Islamic Republic.
Task Force on Research & Development 7th Meeting of the Advisory Expert Group on National Accounts New York, April 2012 Jens Gruetz.
Handbook on Deriving Capital Measures of Intellectual Property Products Working Party on National Accounts 3-5 October 2007 Charles Aspden, OECD.
REPORT OF 2008 OECD SOFTWARE SURVEY Working Party on National Accounts Paris, October 2008 Jiemin GUO.
Nadim Ahmad, OECD Presented by Peter van de Ven, OECD
1 COMMENTS ON THE PAPER “China’s Measure in Real Term for Education” Ramesh Kolli Additional Director General Ministry of Statistics & Programme Implementation.
UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section Assets, R&D.
Estimation of the value of unquoted shares of enterprises in the public sector OECD Working Party on Financial Statistics 2008 Paris Paper prepared by.
11th OECD-NBS Workshop on National Accounts September 2007 Beijing Update of the 1993 SNA – Progress Report and Main Issues Paul Schreyer, OECD.
THE TREATMENT OF ORIGINALS AND COPIES Working Party on National Accounts October 2004 Nadim Ahmad, Statistics Directorate, OECD.
Draft Handbook on Measuring Intellectual Property Products: Estimating Mineral Exploration Presentation to OECD Working Party on National Accounts, Paris,
Implementation of the 2008 SNA in the OECD Charles Aspden Working Party on National Accounts, October 2008.
1993 SNA update: towards SNA Rev.1 Lidia Bratanova UNECE Statistical Division Kiev,July 2007.
1 The OECD Task Force on Financial Services Conclusions of the meeting 7-8 October 2004 Anders Nordin OECD OECD Working Party on National Accounts Paris,
BPM6—Update on Revision and Implementation Strategies Meeting of the OECD Working Party on International Trade in Goods and Trade in Services Statistics.
1 Update on Work of ISWGNA Task Force on FISIM Herman Smith UNSD/DESA Workshop on the Implementation of the 2008 SNA, Kiev, 29 November – 2 December 2011.
JOINT UNECE/EUROSTAT/OECD MEETING ON NATIONAL ACCOUNTS, GENEVA APRIL DERIVING ESTIMATES OF GROSS FIXED CAPITAL FORMATION OF RESEARCH AND DEVELOPMENT.
UNECA/UNSD Regional Workshop November 2005 Research and Development UNSD/NA/MR1 UN STATISTICS DIVISION Economic Statistics Branch.
Capitalization of R&D in the national accounts of Israel.
Barbara M. Fraumeni Muskie School of Public Service, USM, Portland, ME & the National Bureau of Economic Research, USA Conference of European Statisticians.
JOINT UNECE/EUROSTAT/OECD MEETING ON NATIONAL ACCOUNTS, GENEVA APRIL HANDBOOK ON DERIVING CAPITAL MEASURES OF INTELLECTUAL PROPERTY PRODUCTS Agenda.
Progress Report on the Review of the SNA Carol S. Carson Project Manager Working Party on National Accounts OECD, Paris, October 11-14, 2005.
Research and Development (Issue 9) 1 Gulab Singh UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section.
1 1 R&D in the Norwegian National accounts Presented by Knut Ø. Sørensen Statistics Norway Agenda item 4 Invited paper 14.
Cost of capital services and the national accounts 1 UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section UNSD/ECA National accounts.
Simon Compton Methodology Directorate Office for National Statistics
. Guidance on Measuring Global Production 10 th AEG meeting April, Paris Prepared by Eurostat, OECD and UNECE.
1 REPORT OF FIRST CANBERRA II MEETING Voorburg, April 15-17, 2003.
STATISTICAL UNITS IN DESCRIBING THE PRODUCTION PROCESS: MAIN ISSUES Peter van de Ven Head of National Accounts OECD Advisory Expert Group on National Accounts.
Handbook on Deriving Capital Measures of IPPs
Review of compilation guidance
Capitalisation of R&D in national accounts
A Satellite Account for Research and Development for Denmark
Contact: Update on the Treatment of Emission Permits in the National Accounts OECD National Accounts Working Party Meeting Paris.
Item III.3: Research and Development
Research and Development
Research and Development
Item 14a: Research and Development
R&D Satellite Accounts in the Netherlands
Research and Development
Task Force on Environmental transfers of the Working Group on
Using FM data for an R&D satellite account
Contact: Handbook on Deriving Capital Measures of Intellectual Property Products Key recommendations National Accounts Working Party.
UPDATE OF SNA 1993 Conference on National Accounts in the context of development cooperation Luxembourg 6-8 May 2008.
Results of the Global Consultation on Government and Other Non-Market Producers’ Owned Assets – Cost of Using Capital.
Presentation transcript:

1 Capitalisation of R&D Report of R&D Task Force Charles Aspden Working Party on National Accounts, October 2006

2 OECD joint task force On the assumption that the AEG recommendations on R&D will be accepted by the UNSC in March 2007, two OECD task forces, Canberra II and NESTI, have joined forces to pave the way for an efficient and effective introduction. First joint meeting was held on 31 May, 1 June 2006

3 OECD joint task force Major outcomes of the first meeting Supported the OECD proposal to develop a manual concerning the estimation of intellectual property assets, including R&D and software. Sought clarification of the recommendation –In principle, freely available R&D should not be included as capital formation but in practice it may not be possible to exclude it. The assumption is that including freely available R&D would not lead to significant error. Some members challenged that the amount of freely available R&D was so small that its inclusion would not lead to significant error. It was also pointed out that the recommendation could be interpreted differently by countries, leading to a loss of international comparability.

4 Freely available R&D It was agreed that a note should be drafted describing what freely available means and what should be excluded from R&D GFCF in principle. Note to be sent to the ISWGNA for their consideration. Once this matter had been settled in principle, NESTI-Canberra II would consider how it could be implemented.

5 Freely available R&D Attachment 3 to the paper describes in principle what the ISWGNA thinks should be included in GFCF and what should be excluded. –R&D output that when made freely available leaves the owner (or the members of its collective group) with no economic benefits should be excluded from GFCF. –However, making R&D output freely available does not exclude the original knowledge from being an asset provided the expected benefits for the economic owner (or the members of its collective group) are not diminished. What matters is the effective management and control of the knowledge asset in order to ensure the expected benefits are obtained.

6 Freely available R&D ISWGNA proposes to change the recommendation to read as follows: –Research and development should be treated as capital formation and the value should be determined in terms of the economic benefits it provides. In principle, R&D that does not provide an economic benefit to its owner does not constitute a fixed asset and should be treated as intermediate consumption. Because it is difficult to quantify the benefits of R&D, by convention, it may be valued at the sum of costs.

7 Freely available R&D Implementation Attachment 4 describes two alternative ways of implementation: –Asking specific questions in R&D surveys to identify R&D whether ownership criteria are met. –Using existing information It is suggested that if the second alternative were chosen, then excluding basic research undertaken by government and higher education and some of the R&D undertaken by private non- profit units would give a reasonable approximation of that part of R&D that should be excluded from GFCF. Based on data for 29 countries on the OECD database, it would exclude about 20% of R&D expenditures from GFCF on average. But there is considerable variation between countries.

8 Freely available R&D Implementation – cont. The FM defines basic research (para. 240) as –… experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view. and also states (para. 241) that –… the results of basic research are not generally sold but are usually published in scientific journals or circulated to interested colleagues. Occasionally, basic research may be classified for security reasons.

9 R&D expenditure by performers Unweighted average %, 2003 Business ents Govern- ment Higher education Private non-profit Total Basic research Applied research Experim- ental dev Total

10 Using bridge tables between Frascati data and the national accounts Several countries have followed the pioneering work of Soli Peleg (Israel) in transforming Frascati R&D survey data into national accounts statistics. It is now fairly clear what changes are required to Frascati surveys to better meet the needs of the national accounts.

11 International trade in R&D- a problem area There is evidence from the Netherlands that R&D trade data for outputs and services are under- reported. It would be useful to conduct a consultation of major R&D performers to investigate this matter further. OECD Secretariat is willing to draft a questionnaire and prepare a consolidated report of the results.

12 Capital measures The most important parameter in deriving estimates of capital stock, CFC and capital services is the expected service life of the asset. Lack of good quality data. Proposed that major R&D performers be approached to find out what their expectations of service lives are. –Need to consult a variety of industries. –Combine with trade inquiry? –OECD happy to coordinate.

13 Volume estimation Evidence suggests that it is best to use tailor-made input-based deflators for each industry and sector. Weight elemental price indexes at lowest level practical. Need to weight capital inputs appropriately.

14 Quarterly estimates Need to look into feasibility of quarterly R&D surveys. Alternative is to develop indicators using proxies and a model for capital services.

15 Next meeting –It is intended to hold another joint meeting of the Canberra II Group and NESTI on 26, 27 April, 2007 in Paris. This will follow a meeting of the Canberra II Group on 25, 26 April. Peter Harper (ABS) will chair both meetings. The major agenda items for the joint meeting will be: Preliminary draft manual on measuring intellectual property statistics in the national accounts Investigations into compiling R&D statistics for the national accounts