The OECD STAN Database 1 st World KLEMS Conference 19 th -20 th August 2010

1. The OECD STAN Database1stWorld KLEMS Conference 19th-20th August 2010 Colin Webb OECD STI/EAS

2. The STAN family • STAN – industry: www.oecd.org/sti/stan • Bilateral Trade by industry (STAN-BTD): www.oecd.org/sti/btd • Business Expenditure on R&D by industry (STAN-R&D or ANBERD): www.oecd.org/sti/anberd • Input-Output tables (STAN-IO): www.oecd.org/sti/inputoutput + derived set of ‘STAN Indicators’: www.oecd.org/sti/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 1970. • 49 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 1970. • About 100 industries based on ISIC Rev. 3 • 30 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. OECD’s 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 • It’s 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