1. Statistics for economic analysis and policy making in Europe Part 5
CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE EUROPEAN COMMISSION

2. Analysis of growth and structural change – Overview
Introduction - Theoretical background
Structural business statistics (SBS)
Business demography
Foreign Affiliates Statistics (FATS)
Foreign direct investment (FDI) Statistics
Statistics on trade by enterprise characteristics
Statistics on science and technology
Innovation statistics
Statistics on the information society

3. Introduction Analytical orientation
Analysis of the economic structure in many dimensions such as type of activity, region, size class.
Analysis of the changes in the structure, including business demography.
Measurement of the factors of production used.
Providing information on key factors influencing competitiveness and economic growth.
Meeting the needs of national accounts.

4. Introduction Common characteristics
Enterprise as the central statistical unit used.
Core concepts are derived from national accounts.
Reference period usually the calendar year.
Data provision annually or multi-annually.
Timeliness is not the first priority.

5. A synoptic overview – coverage of selected annual statistics

6. A synoptic overview – coverage of selected annual statistics

7. A synoptic overview – selected annual statistics, breakdown by NACE Rev. 2

8. External study on detail evaluation of the legal acts in the areas of statistics which were identified by member states as areas to revision
A synoptic overview – selected annual statistics, breakdown by NACE Rev. 2
Source of the last few slides:
Josef Richter, Christian Engelage, Peter Thomas
External study on detail evaluation of the legal acts in the areas of statistics which were identified by member states as areas to revision; Luxembourg 2010

9. A synoptic overview – selected annual statistics, breakdown by size classes
Structural business statistics:
Annexes I to IV: Size classes of number of persons employed
Annex IX: Size class of number of employees
ICT:
Number of persons employed Innovation and R&D:
Number of employees
Labour cost statistics:
Vocational Training Statistics:
Number of persons employed

10. Structural business statistics
Structural business statistics (SBS) can be seen as the core of the system of economic units oriented statistics.
Organised as a common module and a number of branch-specific additional modules.
Main primary data sources: accounting data, information on employment.
Information on the national and (some) data on the regional level.

11. Structural business statistics
Common module – national level
Statistical unit: Enterprise (market sector only)
Scope: NACE Rev. 2 B to S except O
Reference period: year
Periodicity: annually
Transmission of preliminary results also required
Breakdown by:
Economic activity according NACE Rev. 2
Size classes

12. Structural business statistics
Common module – national level – variables:
Structural data
Number of enterprises
Accounting data
Turnover
Production value
Value-added at factor cost
Gross operating surplus
Total purchases of goods and services
Purchases of goods and services purchased for resale in the
same condition as received

13. Structural business statistics
Common module – national level – variables:
Accounting data
Payments for agency workers
Personnel costs
Wages and salaries
Social security costs
Data related to the capital account
Gross investment in tangible goods
Data on employment
Number of persons employed
Number of employees
Number of employees in full-time equivalent units

14. Structural business statistics
Common module – regional level
Statistical unit: Local unit
Scope: NACE Rev. 2 B to S except O
Reference period: Year
Periodicity: Annually
Variables: Wages and salaries, employment only
Breakdown by:
Economic activity according NACE Rev. 2
NUTS 2

15. Structural business statistics
Industry module – national level
Statistical unit: Enterprise (market sector only)
Scope: NACE Rev. 2 B to E
Reference period: Year
Periodicity: Annually, Multi-annually
Transmission of preliminary results also required
Breakdown by:
Economic activity according NACE Rev. 2
Size classes

16. Structural business statistics
Industry module – national level
Additional information such as:
Breakdown of turnover by type of activity
Purchases of energy products
Total current expenditure on environmental protection
Investment in equipment and plant for pollution control, and special anti-pollution accessories (mainly end-of-pipe equipment)
Investment in equipment and plant linked to cleaner technology (integrated technology)
Payments to subcontractors

17. Structural business statistics
Construction module – national level
Statistical unit: Enterprise (market sector only)
Scope: NACE Rev. 2 F
Reference period: Year
Periodicity: annually, multi-annually
Transmission of preliminary results also required
Additional branch specific variables
Breakdown by:
Economic activity according NACE Rev. 2, size classes

18. Structural business statistics
Trade module – national level
Statistical unit: Enterprise (market sector only)
Scope: NACE Rev. 2 G
Reference period: Year
Periodicity: annually, multi-annually
Transmission of preliminary results also required
Additional branch specific variables
Breakdown by:
Economic activity according NACE Rev. 2, size classes

19. Structural business statistics
Trade module – regional level
Statistical unit: local unit
Scope: NACE Rev. 2 G
Reference period: Year
Periodicity: annually, multi-annually
Additional branch specific variables such as turnover, sales space
Breakdown by:
Economic activity according NACE Rev. 2, NUTS 2

20. Structural business statistics
Business services – national level
Statistical unit: Enterprise (market sector only)
Scope: NACE Rev , 62, 63.1, 69.1, 69.2, 70.2, 71.1, 71,2, 73.1, 73.2, 78, thresholds
Reference period: year
Periodicity: annually, multi-annually
Additional branch specific variables
Breakdown by:
Economic activity according NACE Rev. 2

21. Business demography
Business demography is the only statistical project within the system of business statistics directly dealing with the dynamics of the economic process over a longer period directly.
Business demography aims at a detailed analysis of the population of active enterprises, enterprise births, enterprise deaths and the survival of newly born enterprises and the related effects on the structure, activity and the evolution of the business population.

22. Business demography
Data on births and deaths of enterprises and their life expectancy are increasingly requested by policy makers but also by economists.
Some of the results are directly used for the calculation of the indicators measuring the progress towards the goals as defined in the in the Growth and Jobs Strategy (The Lisbon Strategy 2005).

23. Business demography
The comparability of demographic events and in particular of relative indicators such as birth and death rates are very dependent
on the standards of the statistical business registers and
to which extent the delineation of enterprises is harmonised between countries.

24. Business demography Basic characteristics Statistical unit: enterprise
Scope: NACE Rev. 2 sections B to N with the exception of NACE Rev.2 group K 64.2, sections P, Q, R and S.
Reference period: year
Periodicity: annually
Breakdown by:
Economic activity according NACE Rev. 2
Size classes, legal form

25. Business demography Variables include:
Structural data (for time period t)
Population of active enterprises in t
Number of births of enterprises in t
Number of deaths of enterprises in t
Number of enterprises newly born in t-1 having survived to t
Number of enterprises newly born in t-2 having survived to t
Number of enterprises newly born in t-3 having survived to t
Number of enterprises newly born in t-4 having survived to t
Number of enterprises newly born in t-5 having survived to t

26. Business demography Variables include:
Data on employment for the populations of active enterprises, enterprise births, enterprise deaths and enterprise survivals.
Derived variables of special importance are
Survival rate of newly born enterprises
Average survival rates
High growth enterprises
Gazelles

27. Foreign AffiliatTes Statistics (FATS)
Foreign AffiliatTes Statistics (FATS) provide data on enterprises in the compiling country which are controlled by institutional units abroad and data on (foreign) enterprises which are controlled by resident institutions.
Control means the ability to determine the general policy of an enterprise by choosing appropriate directors, etc.
In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares.

28. Foreign AffiliatTes Statistics (FATS)
The quality of the EuroGroups Register (EGR), is of crucial importance for carrying out and coordinating survey frames for statistics on global business activities, like FATS and Foreign direct investment statistics (FDI).  
The EGR is the statistical business register of multinational enterprise groups (MNEs) having at least one enterprise in the territory of the EU.

29. Foreign AffiliatTes Statistics (FATS)
The EGR contains information on the following units and characteristics:
legal units: identification, demographic, control and ownership characteristics;
enterprises: identification and demographic characteristics, activity code (NACE), number of persons employed, turnover, institutional sector;
enterprise groups: identification, demographic characteristics, the structure of the group, the group head, the country of global decision centre, activity code (NACE), consolidated employment and turnover of the group.

30. Inward FATS
Inward FATS describe the overall activity of foreign affiliates resident in the compiling economy.
A foreign affiliate is an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has control.
Inward FATS are usually compiled in the framework and on the basis of results of the SBS in combination with register data on foreign ownership and control.
Inward FATS provide the same kind of structural annual information as SBS.

31. Inward FATS Basic characteristics
Statistical unit: enterprise (market sector only)
Scope: NACE Rev. 2 B to S, except O which are foreign affiliates
Reference period: year
Periodicity: annually
The list of variables is a subset of the list of the common SBS Module
Breakdown by:
Economic activity according NACE Rev. 2

32. Inward FATS - example

33. Inward FATS - example

34. Inward FATS - example

35. Outward FATS
Outward FATS describe the activity of foreign affiliates resident abroad controlled by the compiling country.
A foreign affiliate within the terms of Outward FATS is an enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control.
Outward FATS provide data of the economic impact of investments abroad.

36. Outward FATS
Outward FATS data are usually collected in the framework of FDI Statistics or as stand-alone surveys possibly linked to SBS or FDI, but certainly based on enterprises resident in the compiling economy.
Outward FATS is limited to affiliates resident in non-EU countries that are controlled by an institutional unit resident in a Member State of the EU.

37. Outward FATS Basic characteristics
Statistical unit: enterprise (market sector)
Scope: NACE Rev. 2 B to S, except O which control ‘foreign affiliates’ abroad.
Reference period: year
Periodicity: annually
Short list of variables
Breakdown by:
Economic activity according NACE Rev. 2
Geographical breakdown

38. Foreign direct investment statistics
Foreign direct investment (FDI) statistics are part of Balance of Payments statistics but go beyond Balance of Payments Statistics.
FDI Statistics are one of the few examples in business statistics which cover flows and stocks (in this case termed ‘positions’). FDI statistics contains inward and outward investment.
The EGR or the system of interoperable statistical business registers should identify the relationships between the institutional units by providing information about the chain of ownership in the MNEs.

39. Foreign direct investment statistics
Basic characteristics
Statistical unit: enterprise
Scope:
All resident units in all sectors of the economy
As regards control direct or indirect ownership of 10% or
more of the voting power of an enterprise resident in one
economy by an investor resident in another economy.
Reference period: year for flows, end of the year for stocks

40. Foreign direct investment statistics
Basic characteristics
Periodicity: annually
Very specific list of variables
Breakdown by:
Economic activity according NACE Rev. 2
Geographical breakdown

41. Trade by enterprise characteristics
Statistics on international trade by business characteristics are based on the product oriented Extrastat and Intrastat results.
For the purpose of this project the trade specific register needs to be fully integrated in the statistical business registers.
This bridge to activity oriented statistics allows for the provision of results in an activity classification of the actors involved and in a breakdown by size classes.

42. Trade by enterprise characteristics
This project provides an outstanding example for the possibility to reuse data primarily collected for a different purpose for additional analytical goals in an integrated system centred on (integrated or at least linked) statistical registers.
New types of analyses become possible, for example the analysis of enterprises involved in international trade, without imposing new statistical requirements on reporting companies.

43. Trade by enterprise characteristics
Basic characteristics
Statistical unit: enterprise
Scope: NACE Rev. 2 A to U
Reference period: year
Periodicity: annually
Breakdown by:
Economic activity according NACE Rev. 2
Trading partners
Size classes, etc.

44. Statistics on science and technology
Statistics on science and technology are relevant for the formulation and assessment of science and technology policies in the increasingly knowledge-based economies.
Statistics on science and technology covers quite distinct statistical projects:
Research and development (R&D) statistics which is devoted to measuring R&D inputs;
Government budget appropriations or outlays for R&D;
Other statistics on science and technology.

45. Statistics on research and development
New growth theory stresses the relevance of research and development efforts.
Data are needed for the formulation and assessment of science and technology policies in the increasingly knowledge-based economies.
Special attention is paid to the work carried out in cooperation with or by the OECD.
R&D statistics rest on a definition of research and development which is difficult to be defined in an unambiguous way.

46. Statistics on research and development
Basic characteristics
Statistical unit: enterprise, local unit
Scope: NACE Rev. 2 A to U, R & D performing units, not limited to the market sector
Reference period: year
Periodicity: annually
Breakdown by:
Economic activity according NACE Rev. 2
Size classes, type of R&D, classification by occupation etc.

47. Statistics on research and development
Variables include:
Number of R & D personnel in head count (HC)
Number of researchers in head count (HC)
Number of R & D personnel in full-time equivalent (FTE)
Number of researchers in full-time equivalent (FTE)
Intramural R & D expenditure

48. Innovation statistics
The central role of innovation for economic growth was already a topic in the historical school of economics and in particular in the work of Schumpeter.
Innovation policy can be seen as an amalgam of science and technology policy and industrial policy.
Innovation is at the heart of the ‘knowledge-based economy’.
Innovation indicators seek to meet the information needs of policy makers and analysts.

49. Innovation statistics
Innovation statistics rest on a definition of innovation (product innovation, process innovation) which – by the nature of the phenomenon – cannot be defined in such an unambiguous way as other economic variables.
The number of innovation active enterprises is a key variable.
Like many other statistical projects Innovation statistics started in manufacturing.

50. Innovation statistics
Basic characteristics
Statistical unit: enterprise
Scope: not the entire scope of the common module of SBS; threshold
Reference period: year
Periodicity: annually
Breakdown by:
Economic activity according NACE Rev. 2
Size classes
Types of innovation, etc.

51. Statistics on the information society
Statistics on the information society (ICT Statistics) are required for monitoring the progress towards the most competitive and dynamic knowledge-based economy in the world.
In particular the progress with respect to the flagship initiatives under the umbrella of the Europe 2020 strategy has to be monitored.
ICT statistics are also needed for calculating structural indicators.

52. Statistics on the information society
ICT statistics covers two different subprojects. Only the first deals with enterprises and the information society. The task of the second subproject are individuals, households and the information society.
A very specific characteristic of ICT statistics is that the framework regulation is implemented by annual Commission regulations.
Characteristics, coverage, deadlines are defined in annual implementing regulations.

53. Statistics on the information society
Because of the annual implementation of the regulations about 40% of variables change annually.
ICT statistics cover quantitative (background) variables as well as qualitative variables.
The quantitative variables refer to the previous year, the qualitative variables to the reference year.
In a rapidly changing environment, priority is given to up-to-date information.

54. Statistics on the information society
Basic characteristics
Statistical unit: enterprise
Scope: not the entire scope of the common module of SBS; threshold
Reference period: year
Periodicity: annually
Breakdown by:
Economic activity according NACE Rev. 2
Size classes

55. Concluding remarks
At present the closely related annual activity oriented statistics are organised in different domains.
The need to use the results jointly asks for an integrated system of business statistics in which the various blocks of information can be combined in a meaningful way.
Compatible national accounts can not be compiled on the basis of incompatible business statistics.

56. Concluding remarks The vision of an integrated system
Full consistency has to be guaranteed with respect to
Statistical units
Link to the central statistical business registers; use of the same vintage (version) of the registers
Reference period
Core definitions
Coverage (at least for big subsets)
Breakdown (at least for detailed common denominators)

57. Concluding remarks The vision of an integrated system
Common concepts are a necessary but not a sufficient criterion.
Coherence and comparability call for a harmonisation in the implementation of the concepts.
Coherence and comparability will only be given in the case of a certain harmonisation of processes.
Of particular importance:
Identification of units
Process of classifying units
Maintenance of the statistical business registers

58. Thank you for your attention
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