1. CompNet and its value added

2. CompNet goals
The EU system of Central Banks set up the Competitiveness Research Network (CompNet) in March 2012
Now it has expanded to become a network of academics and policy practitioners collaborating to:
Provide a robust theoretical and empirical link between the drivers of competitiveness and macroeconomic performance for research, policy analysis and country surveillance
Use cross-country benchmarking and adopting a multi-dimensional approach (i.e. a set of complementary macro, firm-level and cross-border indicators)

3. Our value added Macro and firm level
ULC mean in Eurostat
ULC mean in CompNet
ULC for least productive firms in CompNet
ULC for most productive firms in CompNet
We have the same information available in Eurostat
We add granularity  we have information on firms across several dimensions
We look at firms’ heterogeneity within and across sectors/countries and show why it is important to consider for policy analysis and research
Approach is becoming more and more relevant for high level policy making: see for example, based on CompNet data, the last issue of ECB economic bulletin [link embedded]

4. Data and Coverage

5. Our Data We use firm-level data from business registers
Country teams, from National Central Banks and National Statistical Institutes, run common codes to create indicators at industry, macro-sector and country level
Confidentiality is preserved
Data comparability is ensured
In addition to sector averages, we collect the full distribution for more than 70 critical business related variables
information is much richer in comparison to the usual available sector aggregation (e.g. Eurostat)
Most notably, the database includes more than 300 joint distributions linking different firms’ characteristics

6. Five broad categories of variables are available…

7. Example of joint distributions
Example type of question:
Are low productive firms in a country-sector
characterized by higher credit constraints?

8. 20 EU countries 1995-2013 1995-2013 9 macro-sectors ≈ 60 sectors
CompNet framework
Participants to the micro database:
20 EU countries
13 in the 5th vintage
+ 7 considering the 4th vintage
Period:
with delayed entrance
of some countries
Period:
with delayed entrance
of some countries
Sectors:
9 macro-sectors
1-digit industry
≈ 60 sectors
2-digit industry (NACE Rev.2)

9. The CompNet database includes two different samples
CompNet coverage
The CompNet database includes two different samples
Full sample: all non-financial firms with at least 1 employee (excluding self-employed) aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa  uneven coverage due to country specific reporting thresholds
20E sample: all non-financial firms with at least 20 employees. Highly representative sample, particularly suitable for cross country comparison  homogeneous samples and even coverage further improved by population weights
CompNet’s 20E sample and Eurostat coverage
 Country
Number of firms
Number of employees
Real Value Added
Belgium
81.5%
84.0%
83.9%
Croatia
91.7%
90.9%
77.8%
Czech Republic
95.0%
94.0%
48.9%
Denmark
69.4%
63.5%
96.6%
Estonia
90.2%
81.8%
43.5%
Finland
86.1%
85.5%
81.1%
France
86.2%
89.0%
84.2%
Italy
78.9%
85.1%
56.6%
Latvia
83.3%
93.2%
53.8%
Poland
75.9%
40.4%

10. Examples and applications

11. Labour productivity distribution in 2004 and 2013
2009
2009
2013
2013
In 2013, the labour productivity distribution was more skewed to the right
relatively to the pre crisis period
 Increase in the share of the most productive firms
Generally, the productivity distribution is asymmetric and skewed
Typical example of the possibilities given by granular data
Targeted analysis on tails and extreme observations
Full density distribution estimation
Better representation of reality
Broader research questions
More precise answers
In 2009, countries reported different reactions
Policies should continue making
the “right-tail” even
thicker

12. How productivity level is related to credit constraints (CC)?
CompNet has computed Credit Constraints indicators based on firms’ financial
characteristics and information available in the SAFE survey
Least
productive
Least
productive
Median
productive
Median
productive
Most
productive
Most
productive
More productive firms seem to be on average less credit constrained
The credit crunch hit mostly the least productive firms
In all countries access to credit improved in the recovery period
With the exception of Denmark and Finland
Reference: CompNet Financial module, Ferrando et al. (2015)

13. Profitability (ROA) and productivity distributions
Most productive
Most productive
Median
Median
Least productive
Least productive
In 2009, there has been a sharp
decline in ROA
Most productive
Low productive firms were the most affected by the crisis
Median
In 2013, all firms recovery in their
profitability
Least productive

14. More about the network

15. Our partner institutions
CompNet is an independent Network of researchers and policy makers Its member Institutions are:
European Central Bank (ECB)
European Commission (EC)
Halle Institute of Economic Research (IWH)
European Bank of Reconstruction and Development (EBRD)
European Investment Bank (EIB)
Tinbergen Institute
And a number of National Central Banks and National Statistical Institutes

16. CompNet Governance is composed by three main bodies
Governance Structure
CompNet Governance is composed by three main bodies
Steering Committee - sets the overall strategy of the network - composed of representatives of the partner institutions
Advisory Board - provides guidance on the long term research objectives - lead by Mr. Vitor Constâncio (Vice President of the ECB)
Executive Committee - responsible for day-to-day management of the network
For a more detailed overview visit our website at

17. Research output
CompNet features a dedicated working paper series within the ECB and the Halle Institute
Since its establishment, CompNet produced more than 50 working papers.
More than 20 of them appeared on peer reviewed journals like:
Journal of International Economics
Journal of International Money and Finance
The World Economy
For a detailed overview of our publications please visit: