Download Supply-Use Tables in the 1993 SNA and SNA 1993 Rev 1 Lecture

Agenda item 6
International Trade in IPPs
Group of Experts in National Accounts
Geneva, April 26-29, 2010
Contact: [email protected]
Chapter 7 – International Trade in IPPs
• Tackles two key issues
– Trade in IPPs between non-affiliates
– Trade in IPPs between affiliates
Background
• Research and development (new to 2008
SNA
• Mineral exploration and evaluation;
• Computer software and databases;
• Entertainment, literary and artistic
originals; and
• Other IPPs.
Trade between non-affiliates
• Transactions typically observable but
– Until EBOPS 2010 some transactions were
recorded as ‘other royalties’ category;
meaning that GDP may have been under/over
recorded.
– GFCF estimates however almost certainly
affected due to considerable use of supplybased approaches to estimation.
Trade between non-affiliates – EBOPS 2010
8
Charges for the
use of8.1
intellectual
Franchises and trademarks licensing fees
property,
n.i.e.
8.2 Licenses for the use of outcomes of research and development
8.3 Licenses to reproduce and/or distribute computer software
8.4 Licenses to reproduce and/or distribute audiovisual and related products
8.4.1 Licenses to reproduce and or distribute audiovisual products
8.4.2 Licenses to reproduce and/or distribute other products
9
Telecommunications, computer, and information services
9.1 Telecommunications services
9.2 Computer services
9.2.1 Computer software
of which: 9.2.1.a Software originals
9.2.2 Other computer
9.3 Information services services
9.3.1
9.3.2
10
News agency services
Other information services
Other business services
10.1 Research and development services
10.1.1 Work undertaken on a systematic basis to increase the stock of knowledge
10.1.1.1 Provision of customised and non customised R&D services
10.1.1.2 Sale of proprietary rights arising from R&D
10.1.1.2.1 Patents
10.1.1.2.2 Copyrights arising
from
R&D Industrial processes
10.1.1.2.3
and
designs Other
10.1.1.2.4
10.1.2
Other
Trade between affiliates
• Generally not explicitly identifiable with an
IPP and often recorded as property
income, when it should be a transaction in
goods/services.
• Misallocation, means that estimates of
GDP, GFCF etc are affected.
• Second problem relates to the fact that
transactions, even if observable, between
affiliates do not necessarily align with SNA
perspective.
Trade between affiliates: recommendations
• Bottom line – better information needed
but this will take time.
• Also need to recognise that transactions
between affiliates may not always align
with SNA, either in concept or value.
Further research
• Paper suggests a pragmatic approach, to
form the basis of further research, that
minimises impact on GDP: i.e. Creates
greater international consistency.
Further research
• The approach argues that trade in IPPs between
affiliates should always reflect trade in preexisting assets –as parts of originals (licenses to
reproduce), not entire originals, copies, or
services provided by the original.
• Observable transactions recorded as trade in
services (between affiliates) should be rerouted
to property income – reflecting the earlier
acquisition/sale of part of the original.
Further research
• Trade in pre-existing IPPs also needed but
recognised that this may not be simple
and for convenience (and in the interim) it
may be better to ignore these flows:
• But attempts should be made to value
assets within affiliates, (via revaluations
and OVC).
Finally
• The paper includes an extract of a
prototype survey developed by the OECD
TF on R&D. The aim is not to advocate
that the survey should be used but merely
to provide pointers to countries in
developing their own surveys. Do
delegates think this is useful?