Fashion Sector X Traditional Apparel Sector

The NEW ECONOMY

New challenges for the statistical system

Olof Gärdin

[email protected]

Official Statistics and the New Economy

The IAOS Conference

London, 27-29 August 2002

The New Economy - A Services Economy

• Keywords: Information Society; Digital Economy; Knowledge based Society; Networked Economy

• A long-term shift from the industrial economy towards an economy characterised by information, intangibles and services

• ICTs are the backbone of this evolution

• NE is gradually evolving within a Services economy and has done so for a long time

Three aspects of the Services economy:

• services main part of production and consumption

• the majority work in the services sector

These two are a reflection of the current classifications of economic activities and products. Note that services are predominant also in manufacturing following the early adoption of ICT for rationalisation and automation

• production of services is the dynamic force in the development

This aspect is not well covered by existing statistics and contains much of what is behind the expression the NE

The essential elements of the New Economy are

• Digitalisation and intensive use of ICT;

• Codification of knowledge;

• Transformation of information into commodities; and

• New ways of organising work and production

Information and knowledge input/capital and quality of output are the core in the NE.

The symbiosis between changing production and business processes and ICT is the driving force towards the NE.

Industrial revolutions

• around 1800 the steam engine, the factory system

• around 1900 the internal combustion engine, electricity

• around 2000 microelectronics and IT

Similarities

• basic innovations being diffused within the production system together with new principles for organisation of enterprises and new knowledge requirements

• the developing new infrastructure impacts on the entire society

Processes of change

• differ between changes around infrastructure and basic innovations

• infrastructure enlargement is more about transfer of possibilities and making people participate than creation of new needs for competence

• developed infrastructure moves pressure from technology to society and economy and new competence and the societal changes become far reaching

Readiness

Intensity

Impact

Outcome

New Economy Indicators

Hierarchy of complexity

Readiness indicators, such as describing

• ICT infrastructure• access to Internet, e-mail, PCs• IT skillsIndicate the potential for use of ICTs

Intensity Indicators, such as describing

• ICT investments• the use of Internet, e-mail, PCs• e-commerce• different groups, the extent, for what purposeIndicate the actual use and application of ICTs

Basic indicators for the Information SocietyGive the main basis for eEurope benchmarking and analysing the digital divide

Impact indicatorsRelate mainly to the micro level (enterprises, administrations)

• new ways of organising workrefers to the relations between individuals and within the enterprise

• new ways of organising productionrefers to inter-enterprise relations

• human investment/human capital

• mobility

• innovation/R&D: spin-offs

Outcome indicatorsRelate mainly to the macro or societal level

• Productivity and Competitiveness

• Employment and Labour market

• Social inclusion and participation

The outcome is the aggregate result of what happens on the enterprise level. A theory for explaining macro-economic development has to be micro-based and built on firm level data, on improved classifications and measurements of business processes.

Desirable developments for impact indicators

• more emphasis on the demand side

• focus on the process - the throughput - not only on input and output

• link data on workforce and enterprise

• link data on organisation of work and production, human capital, innovation with performance data

• more emphasis on microdata/firm level data

How much of the Economy do we measure?

• the measured economy is represented by paid and taxed hours of work

• unpaid hours of work and “black” work represents an equal or even larger part of the economy

• if only a small part could be transferred to the paid and taxed labour it would have significant impacts on employment and the economy

• the increasing “connectedness” changes the interaction between the household sector and the business and government sectors

Change in time-use patterns is part of the essence of socio-economic development

Conclusions

ICT is embodied in the organisation of the economy. Changes in the economic organisation are often called structural changes and are seen through the looking glass of current classifications and data collections.

Research is needed to develop

• frameworks and concepts for measuring the new economy

• the classifications systems

• appropriate statistical measures/indicators

• appropriate statistical systems

and to improve the understanding of the role of information and knowledge in the economy

Priority areas for RTD are measuring

• services

• business processes, intra- and inter-enterprise relationships

• location of production and consumption in the new economy

• provision and access to knowledge and human capital

• classifications, specially related to services and services output. The product dimension will grow in importance.

• information and other intangible assets, including valuation

• time use

Finally

• the resource implications of the needs for RTD and new data collections are almost overwhelming

• the needs also pose a major challenge in terms of time-perspective and competence

• improved mechanisms for priority setting are needed

• new and cost-effective statistical and data collection methods are crucial

• the European Research Area and the 6th Framework Programme offer new opportunities for joint and concerted efforts to meet the statistical challenges of the New Economy

Thank you for your attention!

Brazilian Statistical Office

Methodological Department

Implications of the new economy for official statistics:

some conceptual and methodological issues

Rosa Maria Porcaro

[email protected]

IAOS Conference 2002: Rosa Maria Porcaro

Objective and Methodological Approach

Objective to discuss how changes on the contemporary

society reflect in the relevance of official statistics are these changes being captured by the current

statistical surveys? Methodological Approach

to contrast significant changes stressed by the information society approach with some main conceptual and operational aspects used in the construction of official statistics

to highlight important conceptual differences the information dimension of the productive process informational input x output relationships the convergence of information and communication

technology – ICT the flexible productive process


Information Society Approach

emphasis on scientific and technological knowledge a source of value and economic growth a new socio-technological paradigm based

on ICT shift from an industrial form of

development to an information form of development information becomes the principal vector information is simultaneously raw material, processing infrastructure, intermediate goods and final product

polymorphic and ubiquitous nature of information main effects of innovations fall on the process


Information Productive Process

cognitive and symbolic factors gain importance bigger investment in immaterial inputs

designing, planning and developing projects a large amount of virtual (non material)

“production” is done before the final physical production

economic and symbolic processes are interlaced importance of aesthetic factors

fashion sector x traditional apparel sector“art” furniture sector x traditional furniture sector

“athletic” footwear sector x traditional footwear sector


Information Productive Process

the information dimension - knowledge, symbolic, aesthetics factors - is not included in the logic of construction of the current statistics classifications

that has a strong industrial mass production bias based on mechanical technology

if there is an information society there is a information form of development and, consequently, an information productive process


Informational input x output relationship

a new kind of non-material production linked to electronic reality a grid of interrelated products

medialized relationships images of famous and/or beautiful people

that add value to products and/or services monitoring relationships

products and services that aim to assess and explain characteristics and the performance of products and services

» a specialised printing and advertising industry

informational relationships are not considered in the current industrial input x output statistical relationships


Convergence of ICT: integration of activities

ICT converges into integrated information systems interpenetration among sectors overlapping of ICT sectors, such as

computing, telecommunication and television - goods and services

Internet: fusion of telecommunication with informatics and computing services

Internet has created new forms of business with quite integrated functionality

» value chain service providers, value chain integrators, virtual communities, collaboration platforms and market places


Convergence of ICT: integration of activities

growing trend to incorporate services in goods and vice versa connectivity

products are being connected electronically to databases (using chips)

mass production is being customised companies that produce and sell “ICT solutions”:

hardware, software and technical consulting difficulties to draw the boundaries among

sectors

the criteria of exclusivity to classify the activities distorts and masks the characteristic forms of production of the integrated activities


Flexible Productive Process

flexible production based on the ICT new organisational models: the

corporate organisations an articulated constellation of large, medium-sized and small companies

interactions among the productive units a network of subcontracted or outsourced functions

many companies do not produce key components of the final product

possess the “symbolic processing”: control the information productive process

some outsource the entire (or nearly entire) production


Flexible Productive Process

an organisational form of production that differs from that of the fordist companies

a new logic of creation of value

In spite of the efforts of the Statistical Information System to understand outsourcing and subcontracting, it continues to reflect a productive model based on the independency of companies (local unit)


Conclusion

the information society is modifying the assumptions that shape official statistics a distinct - informational - productive and

organisational logic

a measurement gap results from the tension between current statistical instruments and the current dynamics of society

Recent Development of IT Indicators in Japan

Hiroshige FURUTAStatistical Reaearch & Training Institute,

Ministry of Public Management, Home Affairs, Posts and Telecommunications,

JAPAN

IAOS ConferenceAugust 27 – 29, 2002, London

Contents Introduction The framework for IT statistics The present situation of IT statistics

and problems with them Challenge for new IT statistics

• Establishment and Enterprise Census• Survey of Household Economy• Survey on Time Use and Leisure Activities

Conclusion

1 Introduction In response to the statistical needs to grasp the present

state of IT usage and its influence, STI has developed a framework for systematically collecting IT statistics as a basis to compile a new statistical compendium entitled IT Indicators in Japan.

New compendium that covers all the sectors of the society and the economy and gives information ranging from the current status of IT to the impact of IT.

Through the development of the framework and the compendium, it would become possible to assess how well we can approach the IT development with the currently available statistics and to gain insights on the future direction to improve and strengthen IT statistics.

2 The Framework for IT Statistics

Chart 1 The Framework for IT Statistics

Impact Direct/Indirect Impact on Macro EconomyImpact on Society

Impact on Enterprises

Supply Side Demand SideHousehold Enterprise Government School

Usage

Infrastructure Hardware & Software

Network

Human Resources/Research & Development

Present Situation of IT StatisticsStatistics on Infrastructure

Statistics on hardware & software and network

　　… covered wellStatistics on human resources

　　… inadequate

Statistics on Usage…not sufficient, especially for Government and School

Statistics on Impact…has not been developed so much, yet.

3 The present situation of IT statistics in Japan and problems with them

Problems with the Existing Statistics on IT

Insufficiency• Statistics on usage and impact are not adequate.• Obstacle to monitor the IT status in Japan

Inaccuracy• Inappropriate sampling methods or biases• Necessary to improve the quality

Lack of standard definition and classification• such as coverage of the IT industry,scope of

information and communication appliances• Urged to build such standards in Japan

4 Challenge for New IT Statistics SBJ and other statistical agencies are planning

to collect and compile statistics concerning IT,mainly by means of adding new questions on IT to the existing surveys.

This practice would be efficient in terms of both budget and respondent burdens.

It is expected that these actions will improve and strengthen IT statistics.

Establishment and Enterprise Census

• October, 2001 by SBJ• Use of e-commerce, type (BtoB/BtoC),

nature (Sending orders, Receiving orders,Delivery of goods and Services after the sale)

• Able to analyze by region, industry, employment size and so on

Main findings of The Census Actual situation of EC in all enterprises including

small conpanies• Listed enterprises BtoB 38%, BtoC 21% (Jan 2001)• All enterprises BtoB 8%, BtoC 4% (EC 11%)

Situation of EC by capital size and industry• Large enterprises (5 billion and more) 44%• Small enterprises (less than 10 million) less than 10%

• Banks and trust bank 59%• Information services and research 32%• General merchandise 28%• Motor vehicles 28%

Difference between broad definition and narrow definition of EC

-BtoC: the difference between the both definitions is negligible.

-BtoB: the gap is more than 5% in the companies with capital of 100 million yen and more.

Establishment and Enterprise Census (Oct. 2001)

Table 1 Gaps between Broad and Narrow Definitions (The percentage of enterprises using EC)

BtoB BtoCBroad Narrow B - N Broad Narrow B - N

Total 8.1 6.2 1.9 4.0 3.7 0.3(Transaction)Receiving order 4.6 3.7 0.9 3.3 3.1 0.2Ordering 4.4 3.3 1.1Shipment or distribution 1.5 1.1 0.4 0.8 0.7 0.1After-sales services and others 1.8 1.5 0.3 1.1 1.0 0.1(Capital size)less than 5 million yen 5.3 4.0 1.3 3.1 2.9 0.35 - 10 6.0 4.4 1.5 3.2 3.0 0.210 - 30 9.6 7.5 2.1 4.4 4.2 0.330 - 100 14.6 10.9 3.8 5.8 5.5 0.2100 - 300 18.1 13.0 5.0 8.3 8.0 0.3300 - 1000 21.3 15.5 5.9 10.1 9.8 0.31000 - 5000 24.0 17.5 6.5 12.8 12.5 0.35000 and over 33.2 27.8 5.4 21.9 21.1 0.7

Survey of Household Economy

• New monthly survey from October 2001 by SBJ• 30,000 households• Purchase of infrequently purchased but expensive

goods and services• Purchase and ownership of IT related goods and

services and use of the Internet• To monitor the trend of IT use in a timely manner

The proportion of households using the Internet in the past year shows a sharp increase.

Main findings of Survey of Household Economy

*Private use of the Internet in the past one month (Ave. for Jan – Mar 2002) 35.1%

*Use of the Internet for purchasing goods and services ( Table 3)

*The Amount of E-commerce by households (to be released)

Table 2 Trend of Households Using the Internet 1996 97 98 99 2000 2001

3.3 6.4 11 19.1 34 60.5(%)Communication Usage Trend Survey

17.7% of households used the Internet in relation to family expenditure.

Survey of Household Economy (Average for Jan – Mar 2002)

Table 3 Use of the Internet for Purchasing Goods and ServicesPrivate use of the Internet in the past month 35.1%Gathered information for purchasing 17.7 Purchased by that information 11.1Ordered through the Internet 9.9Paid by credit card etc. through the Internet 5.6

Table 4 Purposes of Using the Internet E-mail 28.1%Informatio collection 30.7Internet Shopping 7.5Internet auction 2.5Banking transaction 2.3Transaction of financial goods (stock, insurance etc.) 1.5Others 1.7

Survey on Time Use and Leisure Activities

• October 2001 by SBJ• 80,000 households and 200,000 individuals• Purpose, frequency and place of using Internet• The results will be the first practical material for

the evaluation of digital divide of Japanese people.

Chart 2 The percentage of the Internet use by sex and age

0.010.020.030.040.050.060.070.080.090.0

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70+

Mal eFemal e

The rate of the Internet use is the highest in the age 20-24 both for male and female.

Survey on Time Use and Leisure Activities (Oct. 2001)

The range of the percentage by age, school career and occupation is relatively large compared to the range by sex and region.


Table 5 The percentage of the Internet user by region, occupaton and school career(Population size of city) Range1 million and more 52.9% (Max - Min)150,000 - 1 million 49.650,000 - 150,000 46.7 18.1less than 50,000 34.8Towns and villages 37.2(Workers by occupation)Professional and technical workers 75.8Managers and officials 62.3Clerical and related workers 69.1Sales workers 59.0 64.7Service workers 46.4Agricultural, forestry and fisheries workers 11.1Workers in transport and communications occupations 38.7Production process workers and labourers 39.4(Graduates by school career)Elementary or lower secondary school 12.0Upper secondary school 39.6 63.3Junior colleges 63.3Universities or Graduate school 75.3

The income of the Internet user is higher than that of non-Internet user.


Chart 3 Household income distribution of husband by the Internet use

0.0

5.0

10.0

15.0

20.0

25.0

30.0

-3 3-5 5-7 7-10 10+

Household yearly income (million yen)

The Internet user

Non-Internet user

5 Conclusions Actions to collect and compile statistics concerning

IT by SBJ and other statistical agencies will improve and strengthen IT statistics.

SRTI will follow such development, and continue to compile and publish up-to-date and useful IT statistics of Japan.

IT Indicators in Japan 2002 will be published soon.(available on SBJ web site)

Thank you for your kind attention !

INFORMATION AND COMMUNICATION TECHNOLOGIES

AND E-COMMERCE IN BASQUE COMPANIES: A STATISTICAL

APPROACH

Enrique Morán Aláez

Eustat (Basque Statistical Office)

Establishments by size

010

203040

506070

8090

0-2 3-9 10-19 20-49 50-99 >=100

All

Sample

Establishments by activity sector

0 5 10 15 20 25 30

Industry

Construction

Trade and repairs

Hotel and catering

Transport and communication

Banking and insurance

Services to companies

Public administration

Education

Health and social services

Personal services

All

Sample

Conctacted establishments by result

0102030405060708090

Validansw ers

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Refusals Closed Unknow n Others

Means of the data capture

010203040

50607080

Internet Ordinary mail Interview Phone

Access to the Internet by establishment size

0,0

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>=100empl.

2000

2001

Establishments with access to the Internet by country

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60,0

80,0

100,0

2000 2001 Denmark Finland Norw ay Sw eden

Progress of Internet 2000-01

-4,0 -2,0 0,0 2,0 4,0 6,0 8,0

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>=100 empl.

Establishments by ICT

0,0

20,0

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Internet Intranet Extranet Edi

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2001

Establishments with several ICT by country

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Intranet Extranet Edi

Progress of ICT 2000-01

-4,0 -2,0 0,0 2,0 4,0 6,0 8,0

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Intranet

Extranet

Edi

Establishments with a web site by size

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Establishments with a web site by country

010203040

50607080

2000 2001 Denmark Finland Norw ay Sw eden

Progress of web sites 2000-01

0 2,5 5 7,5 10 12,5 15 17,5

All

10-19 empl.

20-49 empl.

50-99 empl.

>=100 empl.

Establishments of 10 and over employees by ICT and activity sector

0 20 40 60 80 100

Industry

Construction

Trade and repairs

Hotel and catering




P ublic administration

Education


P ersonal services

All

Extranet

Intranet

Internet

Establishments with access to the Internet by activity sector

0 20 40 60 80 100

Industry

Construction

Trade and repairs

Hotel and catering




P ublic administration

Education


P ersonal services

All

2001

2000

Fashion Sector X Traditional Apparel Sector

Technology

new economy provision

industrial economy

measured economy

services economy keywords

new competence

new knowledgerequirements

production information

services icts