High-tech trade by enterprise characteristics by Alexander Loschky European Commission

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High-tech trade by enterprise characteristicsby
Alexander LoschkyEuropean Commission DG Joint
Research CentreUnit G9 Econometrics and Applied
Statisticsand Karo NuortilaEuropean
Commission DG EurostatUnit G5 International
trade production
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High-tech trade

• There are two approaches to measure the trade of
  high-tech industries
• Traditional approach by using correspondence
  tables
• Trade by high-tech goods can thus be calculated
  easily from trade statistics as it requires only
  summing up the goods classified as typical output
  of high-tech industries
• Alternative approach (sectoral approach)
• Activity based approach measures the real trade
  of high-tech activity sectors, regardless of the
  products traded
• Data are however not readily available as the
  approach requires explicit identification and
  selection of traders belonging to high-tech
  activity sectors
• Due to well-known issues, these approaches may
  lead to different outcome
• Coherence with other relevant statistics (R D
  statistics, production,...)?
• Studies and analysis?

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Sectoral approach

• Statistics on trade by activity sectors require
  linking trade micro data with business registers
• Eurostat has worked several years with this
  project (trade statistics by enterprise
  characteristics)
• Standardised set of indicators developed and
  currently available in Comext (20 countries,
  reference years 2005 and 2006)
• The indicators do not, however, provide
  sufficient details on the high-tech trade by
  enterprise characteristics...
• ...but the same method can be used

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Data collection and treatment

• In order test the sectoral approach, EU Member
  States were requested to provide 2 datasets
• Dataset dimensions
• Five high-tech sectors
• Medical, precision optical instruments
  (ISIC/NACE 33)
• Pharmaceuticals (ISIC 2423 / NACE 2441 2442)
• Radio, television communication equipment
  (ISIC/NACE 32)
• Office, accounting computing machinery
  (ISIC/NACE 30)
• Aircraft spacecraft (ISIC/NACE 353)
• Plus Management activities of holding companies
  (ISIC/NACE 7415)
• Most detailed product classification (CN8)
• Partner broken down by Intra- and extra-EU
  partners
• Imports and exports
• In addition, a second dataset was requested
  without a product breakdown but with a size-class
  breakdown
• Variables
• Trade value
• Number of enterprises

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Data collection and treatment

• Data (reference year 2006) received from 17 EU
  Member States and Norway
• Data were aggregated and confidentialised by
  Eurostat before transmission to JRC
• Aggregation over reporting countries (EU as
  reporter)
• Aggregation over products (CN codes summed up to
  HS6)
• Active confidentiality Suppression of
  NACE/Flow/HS6 combination if
• it contains at least one CN-code with 3 or less
  enterprises and
• If the given CN-code(s) make up 80 of the HS
  code

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Share of confidential data
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Share of HT sectors in totalHT sector trade
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Assessment of the traditional approach 1
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Assessment of the traditional approach 2
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Assessment of the traditional approach 3
Exports
Imports

• Results of the assessment
• traditional approach works well for Extratrade
  but not for Intratrade
• traditional approach works better for exports
  than for imports
• calculating the trade value of HT industries via
  correspondence tables can lead to an
  overestimation of HT industries trade
  (especially with respect to the imports)

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Share of HT products traded by HT industries

• Less than 50 of the total exports of the HT
  industries are HT goods
• Share of HT products the highest in Air- and
  Spacecraft industry and Radio, TV, Com-munication
  industry
• Confidentiality had no major impact except on
  imports of the Air- and Spacecraft industry

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Participation of HT industries in total HT trade

• Participation of the HT industries in total
  trade with HT products is considerably higher for
  exports than for imports
• Participation is also much higher for Extratrade
  than for Intratrade

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Share of SMEs in the trade of HT industries by
value 1

• The share of SMEs in the trade of the HT sectors
  as a whole is 15 for imports and 16 in exports
• These shares are somewhat smaller than SMEs
  shares in the total trade of all activity sectors
• SMEs share especially small for the air- and
  spacecrafts industry (only 3)

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Share of SMEs in the trade of HT industries by
value 2

• Value share of SMEs usually relatively small in
  big economies(e.g. DE, FR) and in Eastern
  European Member States (e.g. CZ, EE, HU, PL, SK)
• In Eastern countries probably due to the
  dominance of interna-tional companies on the
  local market

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Share of SMEs in the trade of HT industries by
number of traders 1

• Share of SMEs by number is always higher than
  the share of large enterprises
• Together with the share of SMEs by value this
  confirms that the concentration rate is very high
  in foreign trade
• Large enter-prises play a dominant role while
  SMEs usually have only a small trade volume

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Main results

• Calculating the trade of HT industries via
  correspon-dence tables can lead to an
  overestimation of their trade
• Less than 50 of the exports of HT industries are
  HT goods
• The participation of HT industries in the total
  exports of HT products is in general 50, for
  exports to third countries (Extratrade) it is
  much higher (gt75)
• The (value) share of SMEs in the trade of HT
  industries is smaller than the SMEs share in
  total trade
• The (value) share of SMEs is usually relatively
  small in big economies and in Eastern MS

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Outlook

• Further exploit the data
• 1) product-level analysis of the participation of
  HT industries in the trade with HT goods
• 2) and conversely also of the shares of HT
  products in the trade of HT industries
• Wider data basis
• extend to a wider range of EU MS and if possible
  to OECD MS
• include the trade of other sectors like the
  wholesale and retail sectors (ISIC/NACE 51 and
  52), this will improve mainly the analysis of the
  imports
• In the long term link other enterprise related
  data via the business register to the foreign
  trade data
• e.g. production statistics