1. Handbook on Deriving Capital Measures of IPPs
Charles Aspden, OECD

2. Introduction
Recognition of R&D as a fixed asset is one of the major changes in the new SNA
OECD and EU task forces created to promote its implementation quickly, efficiently, and accurately , while achieving international comparability
New OECD handbook to provide guidance on compiling estimates of intellectual property products (IPP)

3. OECD R&D TF Objective
Complete handbook on deriving capital measures of intellectual property products by the end of 2008, encompasses:
Software and databases
R&D
Mineral exploration and evaluation
Literary and artistic originals

4. Composition of TF US (chair Brent Moulton plus 5 others) Canada (1)
France (2)
Germany (4)
Israel (2)
Korea (2)
Netherlands (1)
Switzerland (1)
UK (1)
OECD (2)
Australia and New Zealand partial members

5. Five sub groups SG A: R&D service lives (Soli Peleg)
SG B: R&D output price indices (Denis Fixler)
SG C: R&D GFCF boundary (Dirk van den Bergen)
SG D: R&D international trade (Francisco Moris)
SG E: Software (Charles Aspden)
5-9 people in each SG
Each SG has its own work plan

6. Meetings and communications in 2008
First meeting in Geneva, April
Second meeting Paris-Washington, July
Third meeting Paris-Washington-Winnipeg, October
SGs communicate by .

7. SG A: R&D service lives Activities
Overview of existing methods
Econometric
Patent renewal
Possibility of using enterprise surveys – i.e. asking the head of R&D for the firm’s expectations
Possibility of seeking expert opinions, e.g. experts in venture capital companies
Israel, Germany and UK have undertaken pilot surveys. The results are encouraging, but more refinement of survey methods is needed.

8. SG B: R&D output price indices Activities
Considered a proposal for a pseudo output price index at the meeting in July.
Will consider refinements to the proposal this week.

9. SG C: R&D GFCF boundary Activities
Clarifying where asset boundary for R&D should be drawn in concept, i.e. what’s in and what’s out.
Testing to what extent basic R&D performed by government and academia results in economic benefits to the owners
Investigation of available data to implement (1) conditional on (2)
Socio-economic objectives appears to provide the best means to make the discrimination
Also considered double counting

10. SG D: R&D international trade Activities
Defining R&D exports and imports: identifying the transactors and transactions; identifying data sources for them
Developing guidelines for source data and capitalization
SITS (source data for services in BPM6 and EBOPS)
Analysis of draft BPM6 and development of proposals for revised MSITS and EBOPS
R&D surveys, i.e. funding and extramural expenditures
Combining data from different sources

11. SG E: Software Activities
Identify changes to SNA
Identify changes to classifications and document relationships between old and new.
Conduct a survey to identify methodological advances since 2003
Amend recommendations accordingly

12. Other IPPs
Mining exploration and evaluation – based on ABS paper presented to Canberra II Group in 2007
Entertainment, literary and artistic originals based on EU TF report in 2003

13. Next steps
Conclude remaining outstanding issues at this week’s meeting
Surveys on service lives and use of innovation survey data
Practicalities of using socio-economic objective data to identify R&D GFCF by non-market producers
Further consideration of trade data and MNCs
Review the draft Handbook
Finalise draft Handbook