united nations statistics division ict, information and intellectual property products an overview...

United Nations Statistics Division

ICT, Information and Intellectual Property

ProductsAn overview of concepts and how

they relate to the CPC Ver. 2

ICT, Information and Intellectual Property

ProductsAn overview of concepts and how

they relate to the CPC Ver. 2

• ISIC Rev.4 contain an alternative aggregate for an “ICT sector” definition and a “content and media” sector definition.

• Likewise, CPC Ver.2 comes with an alternative aggregate for the “information economy” product definition.

• These aggregates originates from the work of an OECD Working Party working in the context of developing indicators on the information society. (WPIIS)

• Their first ICT definition came out in 1998. Since then, development in NAICS and later ISIC have been important for driving the development of these sector and product definitions.

• In the development of these definitions, a number of concepts were defined and used.

BackgroundBackground

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• In this presentation we will look at:In this presentation we will look at:• the concepts and definitions used when talking the concepts and definitions used when talking

about the about the information economy.information economy.• what they meanwhat they mean• how they differ from each otherhow they differ from each other• how they interacthow they interact

• How the new Central Product Classification How the new Central Product Classification (CPC v2) relates to these concepts.(CPC v2) relates to these concepts.

Scope of presentationScope of presentation

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Why this presentation?Why this presentation?Why this presentation?Why this presentation?

• The adoption of new ideas relating to the The adoption of new ideas relating to the “information economy” in ISIC/CPC, has caused “information economy” in ISIC/CPC, has caused substantial changes in these classifications.substantial changes in these classifications.• introduction of introduction of new subclassesnew subclasses• new conceptsnew concepts used in describing subclasses used in describing subclasses• changes in changes in structurestructure

• Some conceptual problems in CPC v1.1 (the previous Some conceptual problems in CPC v1.1 (the previous version) and a rapid change in the actual productsversion) and a rapid change in the actual products

• distinction between original, content and provision distinction between original, content and provision services.services.

• emerging productsemerging products

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Key conceptsKey conceptsKey conceptsKey concepts

The Information EconomyThe Information EconomyICT SectorICT Sector

Content/Media SectorContent/Media SectorICT ProductsICT Products

OriginalsOriginalsContent Content

Intellectual Property ProductsIntellectual Property Products

Product(CPC 2)

Activity(ISIC 4)

Information Economy

ICT SECTOR CONTENT/MEDIA SECTOR

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• ICT sector defined by aggregating complete ICT sector defined by aggregating complete ISIC classes according to the following general ISIC classes according to the following general principle:principle:• The production (goods and services) of a The production (goods and services) of a

candidate industry must primarily be candidate industry must primarily be intended to fulfil or enable the function of intended to fulfil or enable the function of information processing and information processing and communication by electronic means, communication by electronic means, including transmission and display.including transmission and display.

• The industries considered were from The industries considered were from manufacturingmanufacturing, , trade, servicestrade, services and and repair.repair.

The ICT sectorThe ICT sectorThe ICT sectorThe ICT sector

Product(CPC 2)

Activity(ISIC 4)

Information Economy

ICT SECTOR CONTENT/MEDIA SECTORManufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media

Wholesale trade: Computers/peripherals Electronic and telecom. equipment

Services: Telecommunications Comp. programming Comp. consultancy Data processing and hosting Web portals Software publishingRepair Computers Communication eq.

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• It was early recognized that the scope of the “information economy” It was early recognized that the scope of the “information economy” ought to be extended beyond that of the ICT sector.ought to be extended beyond that of the ICT sector.

• Content and media industries are engaged in the production, publishing Content and media industries are engaged in the production, publishing and/or the electronic distribution of and/or the electronic distribution of content productscontent products..

• Guidelines for identifying a content or media product (OECD): Guidelines for identifying a content or media product (OECD): ““Content corresponds to an organised message intended for human beings Content corresponds to an organised message intended for human beings published in mass communication media and related media activities. The published in mass communication media and related media activities. The value of such a product to the consumer does not lie in its tangible qualities value of such a product to the consumer does not lie in its tangible qualities but in its information, educational, cultural or entertainment content”but in its information, educational, cultural or entertainment content”

• The The content/media sectorcontent/media sector are industries that create and disseminate mass are industries that create and disseminate mass market information and cultural products; the market information and cultural products; the ICT sectorICT sector provides the provides the means for doing so.means for doing so.

• In ISIC 4, all of the content/media sector is contained within ISIC In ISIC 4, all of the content/media sector is contained within ISIC section J: section J: “Information and communication”“Information and communication”

The content/media sectorThe content/media sectorThe content/media sectorThe content/media sector

Product(CPC 2)

Activity(ISIC 4)

Information Economy

CONTENT/MEDIA SECTORManufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media



ICT SECTORPublishing of: Books Directories and mailing lists Newspapers and journalsMotion picture, video and TV progr. Production and post-production Distribution and projectionSound recording and music publishingRadio/TV progr. and broadcastingOther information services News agency activities, etc.

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• The new section J in ISIC is called The new section J in ISIC is called “Information and communication”“Information and communication”

• It covers major parts of the “Information It covers major parts of the “Information Economy”Economy” All of the content/media sectorAll of the content/media sector The services part of the ICT sector (i.e., not The services part of the ICT sector (i.e., not

including manufacture, wolesale trade and including manufacture, wolesale trade and repair)repair)

ISIC Section JISIC Section JISIC Section JISIC Section J

Product(CPC 2)

Activity(ISIC 4)

Information Economy

Manufacture of: Electronic components Computers/peripherals Communication equip. Consumer electronics Magnetic/optical media




CONTENT/MEDIA SECTOR

ISIC J

(58-63)

13

• When defining the products of the When defining the products of the Information Economy, the guiding principle Information Economy, the guiding principle was that they should be the output of the was that they should be the output of the Information Economy sectors (ICT and Information Economy sectors (ICT and content/media).content/media).

• This approach facilitates consistency This approach facilitates consistency between product statistics and industry between product statistics and industry statisticsstatistics

Products of the Information Products of the Information EconomyEconomy

Products of the Information Products of the Information EconomyEconomy

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• The ICT products (left side of diagram) The ICT products (left side of diagram) were identified as those primarily intended were identified as those primarily intended to fulfil or enable the function of to fulfil or enable the function of information processing.information processing.

• This is generally (but not always) the This is generally (but not always) the products from the ICT sector.products from the ICT sector.

• The ICT product definition does not have a The ICT product definition does not have a specific goods/services split.specific goods/services split.

ICT productsICT productsICT productsICT products

Product(CPC 2)

Activity(ISIC 4)

Information Economy






ICT PRODUCTS

Electrical capacitors, resistors and their parts Wholesale trade services

Manufacture: Computers/periph. Communication equip. Consumer electronics ICT components Manuf. Services

Maintenance/repair Of computers Of telecom. equipment

Digital cameras Other rec. media

Leasing/rental of ICT equipment

Services: Business/prod. software All software originals IT consultancy Telecom. services

ISIC J

(58-63)

16

• These products embody an organized message These products embody an organized message intended for human beings and mass publishing, or intended for human beings and mass publishing, or related media activities. Its value lies in its related media activities. Its value lies in its information content, not its physical form.information content, not its physical form.

• Generally, products coming out of the Generally, products coming out of the content/media sector (but also a handful from the content/media sector (but also a handful from the ICT sector and from outside)ICT sector and from outside)

• Major components are:Major components are: • originalsoriginals• contentcontent• related servicesrelated services

““Content/media products”Content/media products”““Content/media products”Content/media products”

Product(CPC 2)

Activity(ISIC 4)

Information Economy






ICT PRODUCTS







CONTENT/MEDIA PRODUCTS

Originals Content/serv.

ISIC J

(58-63)

18

• The output of a intellectual / creative activity may The output of a intellectual / creative activity may be considered a be considered a service or an originalservice or an original• When the activity is carried out for another When the activity is carried out for another

party, a service is being provided.party, a service is being provided.• When the output of the creative activity is When the output of the creative activity is notnot

carried out for someone else, the output is an carried out for someone else, the output is an original.original.

• Originals Originals servicesservices• Originals Originals copiescopies

• This distinction is also made in the SNA.This distinction is also made in the SNA.

OriginalsOriginalsOriginalsOriginals

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• Examples of intellectual / creative activitiesExamples of intellectual / creative activities• writing of manuscripts and other textswriting of manuscripts and other texts• audiovisual productionsaudiovisual productions• music compositionmusic composition• music performancemusic performance• research activitiesresearch activities• product design activitiesproduct design activities• geological surveysgeological surveys

OriginalsOriginals(continued)(continued)

OriginalsOriginals(continued)(continued)

Product(CPC 2)

Activity(ISIC 4)

Information Economy






ICT PRODUCTS








Originals Content/serv. sound recordings motion pictures radio/TV prog. product design

Original works of authors, composers, etc.

ISIC J

(58-63)

21

• The reproduction, in some form, of an The reproduction, in some form, of an original, regardless of physical mediaoriginal, regardless of physical media

• In general, most of the value is in the In general, most of the value is in the information content, not the deviceinformation content, not the device..

• A copy of content is a productA copy of content is a product..• The System of National Accounts uses The System of National Accounts uses

the concept of “copies”the concept of “copies”

ContentContentContentContent

Product(CPC 2)

Activity(ISIC 4)

Information Economy






ICT PRODUCTS






Services: Business/prod. software All software originals Licensing of software IT consultancy Telecom. Services




printed/text-based c/s. M. picture, video, radio c/s. Music c/s. game software On-line c/s.

ISIC J

(58-63)

23

• According to the According to the System of National AccountsSystem of National Accounts::“Intellectual property products are the result of research, “Intellectual property products are the result of research, development, investigation or innovation leading to development, investigation or innovation leading to knowledge that the developer can market or use to their own knowledge that the developer can market or use to their own benefit in production because use of the knowledge is benefit in production because use of the knowledge is restricted by means of legal or other protection.”restricted by means of legal or other protection.”

• Specific forms mentioned are products from:Specific forms mentioned are products from:• Research and developmentResearch and development• Mineral exploration and evaluationMineral exploration and evaluation• Computer software and databasesComputer software and databases• Entertainment, literary or artistic originalsEntertainment, literary or artistic originals

• Uses the notion of “originals” and “copies”Uses the notion of “originals” and “copies”

Intellectual Property (IP) productsIntellectual Property (IP) productsIntellectual Property (IP) productsIntellectual Property (IP) products

Product(CPC 2)

Activity(ISIC 4)

Information Economy






ICT PRODUCTS











IP p

rod

ucts

Other originals not covered under content/ media sector

ISIC J

(58-63)

25

• Some of them are neither goods nor Some of them are neither goods nor services, but “IP products and similar services, but “IP products and similar products”products”

• Sections 0-4 limited to transportable goods Sections 0-4 limited to transportable goods classified in the HS.classified in the HS.• These intangible goods have therefore been These intangible goods have therefore been

classified in section 5-9, classified in section 5-9, close to the services close to the services that are outputs of the same ISIC industries as that are outputs of the same ISIC industries as the intangible goodsthe intangible goods..

Content/media products in the Content/media products in the CPC?CPC?

Content/media products in the Content/media products in the CPC?CPC?

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• OriginalsOriginals• Close to the related Close to the related servicesservices, found in part 5-9, found in part 5-9

• ContentContent• Content on physical media: in the related Content on physical media: in the related

products found in part 0-4.products found in part 0-4.• Content not on physical media (downloadable) Content not on physical media (downloadable)

- 843 group: “On-line content”- 843 group: “On-line content”

Content/media products in the Content/media products in the CPC? CPC?

(continued)(continued)

Content/media products in the Content/media products in the CPC? CPC?

(continued)(continued)

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• New detail added for New detail added for information productsinformation products• BooksBooks• softwaresoftware• audio/video tapesaudio/video tapes

• CPC v2 sometimes goes beyond HS in CPC v2 sometimes goes beyond HS in detail.detail.

Pre-existing productsPre-existing productsPre-existing productsPre-existing products

Product(CPC 2)

Activity(ISIC 4)

Information Economy






ICT PRODUCTS











IP p

rod

ucts

Other originals not covered under content/ media sector

ISIC J

(58-63)

united nations statistics division ict, information and intellectual property products an overview...

Documents

ict sector definition

ict definition

product cpc

information society

key concepts

subclassesnew concepts

overview of concepts

number of concepts