Parallel Session IARIW 2014

1. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices
SNA 2008 Implementation Issues with the
capitalisation of Research and Development
Robin Lynch
Paper prepared for the IARIW 33rd General Conference
Rotterdam, the Netherlands, August 24 – 30, 2014
Presented by Erich Oltmanns

2. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices 26.08.2014 slide 2
The framework
Implementation of the SNA 2008
Treatment of Research and Development as Gross fixed
capital formation
Several handbooks
 OECD (2010): Handbook on Deriving Capital Measures of
Intellectual Property Products.
 EUROSTAT (2014): Manual on measuring Research and
Development in ESA 2010. Luxembourg: EUROSTAT.

3. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices 26.08.2014 slide 3
Structure of the paper
Measuring R&D
Transactions in R&D intangible assets
Incorporation of intangibles in other intangibles
OECD Handbook
Annex
 Recognition of R&D as the creation of an intangible asset
 An alternative model of intangibles

4. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices
Measuring R&D
Two aspects
 Output of R&D services
 (Performance of R&D) and the use of the resulting asset
Output
 ESA 2010, para. 3.83
 SNA 2008, para. 6.207
Resulting asset
 Like arts, entertainment and recreation services
 ESA 2010, para. 3.86
 SNA 2008, para. 6.208 – 6.212
26.08.2014 slide 4

5. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices
Incorporation of intangibles
R&D industry
 Sub-contracting
 Possibility of double counting
 Treatment as intermediate consumption
Model of original and copies
 SNA 2008, para 6.208 – 6.212
 Differs from concept for R&D
 Source of confusion
26.08.2014 slide 5

6. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices 26.08.2014 slide 6
R&D as the creation of an intangible asset
Discussion of SNA 2008 para. 6.208 – 6.212
 Identifying inconsistencies
 Suggestion of another model
Production, yes or no
2008 SNA: yes
Lynch: no
Consequence
 Non produced asset (similar to land)
 Entry: Other changes in assets
 Payments (for access to the asset): income transfer

7. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices
Points for discussion
R&D within the production boundary?
 “Genius is one per cent inspiration, ninety-nine per cent
perspiration.“ (Thomas A. Edison)
 “If Edison had a needle to find in a haystack, he would
proceed at once with the diligence of the bee to examine
straw after straw until he found the object of his search.
...
I was a sorry witness of such doings, knowing that a little
theory and calculation would have saved him ninety per cent
of his labor. (Nikola Tesla)
Should R&D be “treated like the model of originals and
copies?
R&D as intermediate consumption?
26.08.2014 slide 7

8. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices
Performance of R&D
28.08.2014 slide 8

9. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices 26.08.2014 slide 9
Hints to the author
Conceptual discussion always useful (next revision?)
Paper should be restructered
The meaning of some sections could be stressed

10. © Federal Statistical Office of Germany, National Accounts, Labour Market, Prices
Thanks for your attention!
Erich Oltmanns
Telephone: +49 611 752087
erich.oltmanns@destatis.de
www.destatis.de