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REPORT OF 2008 OECD SOFTWARE SURVEY. Working Party on National Accounts Paris, 14-16 October 2008 Jiemin GUO. Introduction. 2001 OECD task force for implementation of SNA93 treating software as fixed asset. Two previous software surveys 2002 survey – result reported to OECD WPNA2002

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report of 2008 oecd software survey

REPORT OF 2008 OECD SOFTWARE SURVEY

Working Party on National Accounts

Paris, 14-16 October 2008

Jiemin GUO

introduction
Introduction
  • 2001 OECD task force for implementation of SNA93 treating software as fixed asset.
  • Two previous software surveys
      • 2002 survey – result reported to OECD WPNA2002
      • 2004 small follow-up survey – result reported to OECD WPNA 2004
  • 2007 OECD task force on R&D and Other Intellectual Property Products
      • The 2008 software survey: for the handbook with updated information
2008 oecd software survey
2008 OECD Software Survey
  • Scope: OECD countries and accession countries (35)
  • 20 countries responded
    • 19 OECD Members
    • Israel
basic approach 1 purchased software
Basic approach (1)- Purchased software
  • 15 out of 20 countries use a combination of supply-side and demand-side data.
    • Most adopt confrontation and balancing process.
    • Some rely more on the supply-side data and just use the proportions from the survey estimates to allocate the supply-side aggregate to using industries and sectors,
    • others, such as the Netherlands, place more reliance on the demand-side data.
  • Countries had different views on the quality of the survey data. Some countries had concerns, but others thought they were of satisfactory quality.
basic approach 2 own account software
Basic approach (2)- Own account software
  • Six countries indicated that they also use surveys to obtain estimates of own account software GFCF.
    • Three of them also use a macro method to derive estimates
    • The others rely solely on the survey estimates.
basic approach 3
Basic approach (3)
  • The remaining 5 of the 20 countries use the supply-side approach only for purchased software and the macro approach only for own account software.
supply side approach
Supply-side approach
  • Countries were asked to provide details for the 7 steps for estimating software prescribed in the Handbook.
    • There is considerable variation in country practices and the relative magnitude of the adjustments.
      • Avoiding double counting
      • Excluding maintenance from software supply
      • Exclusion of household consumption.
  • Identifying imports of software is a major problem for many countries.
macro approach to the estimation of own account software
Macro approach to the estimation of own account software
  • Most countries use employment of software professionals, but the coverage varies
  • There is also considerable variation in the assumed proportions of the time spent by these people, ranges from 12.5% to 50%.
  • The mark-up for non-labour costs varies a great deal, from 50% to 120% of labour costs.
sna 2008 recommendation on software licences
SNA 2008 recommendation on software licences
  • Most countries reported that no data collected.
  • It appears that it will be difficult to implement in practice, and it is something the TF needs to address.
  • Possible solutions:
    • Add questions to surveys on length of software licences
    • Ask software publishers for length of software licences for business software
r d and software
R&D and software
  • Only a few countries report having estimates of software R&D.
    • Only 8 countries answered.
    • 6 countries conducted R&D Survey.
    • 4 countries reported that R&D is included in the estimates of software GFCF.
  • Probably not much thought has been given to inclusion of software R&D by other countries.
software price indices
Software price indices
  • US (BEA) has established software price indices for different components
  • A number of countries use the same approach as the BEA or use the adjusted BEA price index for packaged software.
  • Most of the others use various PPIs, CPIs or wage rates.
software service lives
Software service lives
  • Most countries do not use different service lives for packaged and own account/customised software.
  • Overall, the service lives used vary between 3 and 8 years.