Handbook on Deriving Capital Measures of IPPs

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Handbook on Deriving Capital Measures of IPPs

• Charles Aspden, OECD

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Introduction

• Recognition of RD as a fixed asset is one of the
  major changes in the new SNA
• OECD and EU task forces created to promote its
  implementation quickly, efficiently, and
  accurately , while achieving international
  comparability
• New OECD handbook to provide guidance on
  compiling estimates of intellectual property
  products (IPP)

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OECD RD TFObjective

• Complete handbook on deriving capital measures of
  intellectual property products by the end of
  2008, encompasses
• Software and databases
• RD
• Mineral exploration and evaluation
• Literary and artistic originals

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Composition of TF

• US (chair Brent Moulton plus 5 others)
• Canada (1)
• France (2)
• Germany (4)
• Israel (2)
• Korea (2)
• Netherlands (1)
• Switzerland (1)
• UK (1)
• OECD (2)
• Australia and New Zealand partial members

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Five sub groups

• SG A RD service lives (Soli Peleg)
• SG B RD output price indices (Denis Fixler)
• SG C RD GFCF boundary (Dirk van den Bergen)
• SG D RD international trade (Francisco Moris)
• SG E Software (Charles Aspden)
• 5-9 people in each SG
• Each SG has its own work plan

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Meetings and communications in 2008

• First meeting in Geneva, 24-25 April
• Second meeting Paris-Washington, 21-22 July
• Third meeting Paris-Washington-Winnipeg, 16-17
  October
• SGs communicate by email.

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SG A RD service livesActivities

• Overview of existing methods
• Econometric
• Patent renewal
• Possibility of using enterprise surveys i.e.
  asking the head of RD for the firms
  expectations
• Possibility of seeking expert opinions, e.g.
  experts in venture capital companies
• Israel, Germany and UK have undertaken pilot
  surveys. The results are encouraging, but more
  refinement of survey methods is needed.

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SG B RD output price indicesActivities

• Considered a proposal for a pseudo output price
  index at the meeting in July.
• Will consider refinements to the proposal this
  week.

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SG C RD GFCF boundaryActivities

• Clarifying where asset boundary for RD should be
  drawn in concept, i.e. whats in and whats out.
• Testing to what extent basic RD performed by
  government and academia results in economic
  benefits to the owners
• Investigation of available data to implement (1)
  conditional on (2)
• Socio-economic objectives appears to provide the
  best means to make the discrimination
• Also considered double counting

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SG D RD international tradeActivities

• Defining RD exports and imports identifying the
  transactors and transactions identifying data
  sources for them
• Developing guidelines for source data and
  capitalization
• SITS (source data for services in BPM6 and EBOPS)
• Analysis of draft BPM6 and development of
  proposals for revised MSITS and EBOPS
• RD surveys, i.e. funding and extramural
  expenditures
• Combining data from different sources

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SG E SoftwareActivities

• Identify changes to SNA
• Identify changes to classifications and document
  relationships between old and new.
• Conduct a survey to identify methodological
  advances since 2003
• Amend recommendations accordingly

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Other IPPs

• Mining exploration and evaluation based on ABS
  paper presented to Canberra II Group in 2007
• Entertainment, literary and artistic originals
  based on EU TF report in 2003

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Next steps

• Conclude remaining outstanding issues at this
  weeks meeting
• Surveys on service lives and use of innovation
  survey data
• Practicalities of using socio-economic objective
  data to identify RD GFCF by non-market producers
• Further consideration of trade data and MNCs
• Review the draft Handbook
• Finalise draft Handbook