- •Foreword
- •Table of Contents
- •1.1. A preliminary word to the user of R&D data
- •1.2. Coverage of the Manual and the uses of R&D statistics
- •Table 1.1. OECD methodological manuals
- •1.4. R&D input and output
- •1.5. R&D and related activities
- •1.5.1. Research and experimental development (R&D)
- •1.5.2. Scientific and technological activities (STA)
- •1.5.3. R&D and technological innovation
- •1.5.4. The identification of R&D in software, social sciences and service activities
- •1.5.5. R&D administration and other supporting activities
- •1.6. R&D in all fields of science and technology is covered
- •1.7. Measures of R&D inputs
- •1.7.1. R&D personnel
- •1.7.2. R&D expenditures
- •1.7.3. R&D facilities
- •1.7.4. National R&D efforts
- •1.9. Classification systems for R&D
- •1.9.1. Institutional classifications
- •1.9.2. Functional distribution
- •1.10. R&D surveys, reliability of data and international comparability
- •1.11. Government budget appropriations or outlays for R&D (GBAORD)
- •1.12. Topics of special interest
- •1.13. A final word to the user of R&D data
- •2.1. Research and experimental development (R&D)
- •2.2. Activities to be excluded from R&D
- •2.2.1. Education and training
- •2.2.2. Other related scientific and technological activities
- •2.2.3. Other industrial activities
- •2.2.4. Administration and other supporting activities
- •2.3. The boundaries of R&D
- •2.3.1. Criteria for distinguishing R&D from related activities
- •2.3.2. Problems at the borderline between R&D and education and training
- •Table 2.2. Borderline between R&D and education and training at ISCED level 6
- •2.3.3. Problems at the borderline between R&D and related scientific and technological activities
- •2.3.4. Problems at the borderline between R&D and other industrial activities
- •Table 2.3. Some cases at the borderline between R&D and other industrial activities
- •2.3.5. Problems at the borderline between R&D administration and indirect supporting activities
- •2.4.1. Identifying R&D in software development
- •2.4.2. Identifying R&D in the social sciences and humanities
- •2.4.3. Special problems for identifying R&D in service activities
- •3.1. The approach
- •3.2. The reporting unit and the statistical unit
- •3.2.1. The reporting unit
- •3.2.2. The statistical unit
- •3.3. Sectors
- •3.3.1. Reasons for sectoring
- •3.3.2. Choice of sectors
- •3.3.3. Problems of sectoring
- •3.4. Business enterprise sector
- •3.4.1. Coverage
- •3.4.2. The principal sector sub-classification
- •3.4.3. Other institutional sub-classifications
- •3.5. Government sector
- •3.5.1. Coverage
- •3.5.2. The principal sector sub-classification
- •3.5.3. Other institutional sub-classifications
- •3.6.1. Coverage
- •3.6.2. The principal sector sub-classification
- •Table 3.2. Fields of science and technology
- •3.6.3. Other institutional sub-classifications
- •3.7. Higher education sector
- •3.7.1. Coverage
- •3.7.2. The principal sector sub-classification
- •3.8. Abroad
- •3.8.1. Coverage
- •3.8.2. The principal sector sub-classification
- •3.8.3. Other institutional sub-classifications
- •3.8.4. Geographic area of origin or destination of funds
- •4.1. The approach
- •Table 4.1. Utility of functional distributions
- •4.2. Type of R&D
- •4.2.1. Use of distribution by type of R&D
- •4.2.2. The distribution list
- •4.2.3. Criteria for distinguishing between types of R&D
- •Table 4.2. The three types of research in the social sciences and humanities
- •4.3. Product fields
- •4.3.1. Use of distribution by product fields
- •4.3.2. The distribution list
- •4.3.3. Criteria for distribution
- •4.4. Fields of science and technology
- •4.4.1. Use of distribution by field of science and technology
- •4.4.2. The distribution list
- •4.4.3. The criteria for distribution
- •4.5. Socio-economic objectives
- •4.5.2. Minimum recommended breakdown
- •4.5.3. The distribution list
- •4.5.4. The criteria for distribution
- •5.1. Introduction
- •Table 5.1. R&D and indirect support activities
- •5.2. Coverage and definition of R&D personnel
- •5.2.1. Initial coverage
- •5.2.2. Categories of R&D personnel
- •5.2.3. Classification by occupation
- •5.2.4. Classification by level of formal qualification
- •5.2.5. Treatment of postgraduate students
- •5.3. Measurement and data collection
- •5.3.1. Introduction
- •5.3.2. Headcount data
- •5.3.3. Full-time equivalence (FTE) data
- •5.3.4. Recommended national aggregates and variables
- •5.3.5. Cross-classified data by occupation and qualification
- •Table 5.4. R&D personnel classified by occupation and by formal qualification
- •5.3.6. Regional data
- •6.1. Introduction
- •6.2. Intramural expenditures
- •6.2.1. Definition
- •6.2.2. Current costs
- •6.2.3. Capital expenditures
- •6.3. Sources of funds
- •6.3.1. Methods of measurement
- •6.3.2. Criteria for identifying flows of R&D funds
- •6.3.3. Identifying the sources of flows of R&D funds
- •6.4. Extramural expenditures
- •6.6. Regional distribution
- •6.7. National totals
- •6.7.1. Gross domestic expenditure on R&D (GERD)
- •Table 6.1. Gross domestic expenditure on R&D (GERD)
- •6.7.2. Gross national expenditure on R&D (GNERD)
- •Table 6.2. Gross national expenditure on R&D (GNERD)
- •7.1. Introduction
- •7.2. Scope of R&D surveys
- •7.3. Identifying target population and survey respondents
- •7.3.1. Business enterprise sector
- •7.3.2. Government sector
- •7.3.3. Private non-profit sector
- •7.3.4. Higher education sector
- •7.3.5. Hospitals
- •7.4. Working with respondents
- •7.4.2. Operational criteria
- •7.5. Estimation procedures
- •7.5.1. Unit and item non-response
- •7.5.2. Estimation procedures in the higher education sector
- •7.6. Reporting to the OECD or to other international organisations
- •8.1. Introduction
- •8.2. Relationship with other international standards
- •8.3. Sources of budgetary data for GBAORD
- •8.4. Coverage of R&D
- •8.4.1. Basic definition
- •8.4.2. Fields of science and technology
- •8.4.3. Identifying R&D
- •8.5. Definition of government
- •8.6. Coverage of government budget appropriations and outlays
- •8.6.1. Intramural and extramural expenditures
- •8.6.2. Funding and performer-based reporting
- •8.6.3. Budgetary funds
- •8.6.4. Direct and indirect funding
- •8.6.5. Types of expenditure
- •8.6.6. GBAORD going to R&D abroad
- •8.7.1. Criteria for distribution
- •8.7.2. Distribution of budgetary items
- •8.7.3. The distribution
- •8.7.4. Socio-economic objectives – SEO
- •Table 8.1. Standard key between NABS 1992 and previous OECD GBAORD objectives
- •Table 8.2. Standard key between NABS 1992 and Nordforsk GBAORD objectives
- •8.7.5. Principal areas of difficulty
- •8.8. Main differences between GBAORD and GERD data
- •8.8.1. General differences
- •8.8.2. GBAORD and government-financed GERD
- •8.8.3. GBAORD and GERD by socio-economic objectives
- •Table 1. Summary of sectors in the SNA and in the Frascati Manual
- •Table 2. Sectors and producers in the SNA
- •Table 5. Gross output and total intramural R&D
- •Table 1. Identifying health-related R&D in GBAORD
- •Table 2. Health-related R&D from performer-reported data: business enterprise sector
- •Table 3. Identifying health-related R&D by field of science and socio-economic objective
- •Table 2. Current classification of French, UK and US terminology in the Frascati Manual
- •Acronyms
- •Bibliography
- •Index by Paragraph Number
ANNEX 3
Table 1. Summary of sectors in the SNA and in the Frascati Manual
SNA |
Frascati Manual |
|
|
|
|
Non-financial corporations |
Business enterprise sector |
|
|
||
Financial corporations |
||
|
||
General government |
Government sector |
|
|
|
|
Non-profit institutions serving households |
Private non-profit sector |
|
|
||
Households |
||
|
||
(Included in other SNA sectors) |
Higher education sector |
|
|
|
|
Rest of the world |
Abroad |
|
|
|
Source: OECD.
Table 2. Sectors and producers in the SNA
Sectors |
Market producers |
Non-market producers |
|
|
|
Non-financial corporate sector |
Non-financial corporations |
|
|
or quasi-corporations |
|
|
Non-profit institutions (NPIs) engaging |
|
|
in market production1 |
|
|
NPIs serving business |
|
Financial corporate sector |
Financial corporations |
|
|
and quasi-corporations |
|
General government sector |
[Government units engaged in market |
|
production]2 |
|
|
Non-profit institutions serving households (NPISH)
Government units n.e.c. Social security funds NPIs mainly financed by government n.e.c.
NPISH
Households |
Unincorporated enterprises engaged |
Households n.e.c. including |
|
in market production |
unincorporated enterprises |
|
|
engaged in production of goods |
|
|
mainly or wholly for own final use |
|
|
|
1.Supplying goods and services at an economically significant price.
2.These are treated as quasi-corporations as long as they have a separate set of accounts.
Source: OECD.
approaches (see Table 2), and the treatment of R&D in the Frascati Manual, especially performance, is closer to the second of these.
17. The main difference is that the Frascati Manual separates out the higher education sector. This separation is considered very important by R&D statisticians and policy makers, for the reasons given in Chapter 3 of the Manual. However, this additional sector causes problems in an SNA context. While public universities and colleges belong in the SNA government sector, the other components of the Frascati Manual higher education sector may belong almost anywhere in the SNA. Table 3 shows where they might be classified.
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ANNEX 3
Table 3. The SNA sectoring of units definitely and possibly included in the Frascati Manual higher education sector
Market producers |
Non-market producers |
Teaching establishments
i.e. producing higher education services (PHES) as a main activity
University hospitals providing healthcare services (PHSS) controlled by administered by or associated with higher education (CAAHE) and/or with a significant teaching commitment
Research institutes or experimental stations CAAHE3 (“borderline” research institutions)
Postgraduate students supported by grants
All non-financial corporations (or quasi-corporations) PHES1 Any unincorporated enterprises
PHES1 at an economically significant price
NPIs PHES at an economically significant price
NPIs serving enterprises PHES1
Non-financial corporations (or quasicorporations) PHSS2 CAAHE3
NPIs PHSS2 at an economically significant price CAAHE3
Non-financial corporations (or quasicorporations) selling R&D but CAAHE3 NPIs selling R&D at an economically significant price CAAHE3
NPIs serving enterprises CAAHE3
Government units PHES1 Non-profit institutions (NPIs) controlled and mainly financed by government PHES1
NPISHs PHES’
Government units PHSS2 CAAHE3 NPIs controlled and mainly financed by government PHSS2 and CAAHE3
NPIs serving households PHSS2
Government units CAAHE3
NPIs controlled and mainly financed by government but associated with HE
NPISHs which are CAAHE3
Households benefiting from subsidies
1.Providing higher education services.
2.Providing healthcare services.
3.Controlled, administrated by or associated with higher education establishments.
Source: OECD.
18.If the Frascati Manual system had no higher education sector, there would be an almost complete match between the SNA sector classification and the R&D sectors, as has been intended since the 1970 version of the Frascati Manual (OECD, 1970). For example, distribution of private non-profit (PNP) institutions among sectors in the Frascati Manual is clearly based on the SNA; and the section of Chapter 4 of the SNA 1993 devoted to this topic usefully supplements the discussion in Chapter 3 of this Manual.
19.Nevertheless, non-higher education units may be treated somewhat differently in the latest versions of the Manual and of the SNA, as the Manual adapted the original SNA definitions to reflect R&D institutional practice. The institutions are often attributed to sectors by two different agencies which may interpret the same instruction differently.
Classifications
20. The SNA does not always recommend the same classification as the Frascati Manual for what the latter refers to as “sector sub-classifications”. Both use ISIC, but the breakdown of R&D among industries may differ because of
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ANNEX 3
variation in the unit classified and the classification criteria. In the SNA, government outlays are broken down by the classification of the functions of government outlays (COFOG); R&D experts have rejected this classification, in favour of the NABS classification for GBAORD, as they have been unable to agree on a classification for R&D performed in the government sector. In OECD national accounts publications, the government and NPISHs are subdivided by main types of unit (see Table 4), whereas a field of science classification is recommended in this Manual.
Table 4. SNA classifications of government outlays and final consumption expenditure of NPI serving households
A.Government outlays1
1.General public services (including basic research)
2.Defence
3.Public order and safety
4.Education (includes universities and colleges)
5.Health
6.Social security and welfare
7.Housing and community amenities
8.Recreational, cultural and religious affairs
9.Economic services
9.1.Fuel and energy
9.2.Agriculture, forestry, fishing and hunting
9.3.Mining, manufacturing and construction, except fuel and energy
9.4.Transportation and communication
9.5.Other economic affairs
10.Other functions
Total
B. Final consumption expenditure of non-profit institutions serving households
1.Research and science
2.Education
3.Medical and other health services
4.Welfare services
5.Recreational and related cultural services
6.Religious organisations
7.Professional and labour organisations serving households
8.Miscellaneous
Total
1.Final consumption expenditure (of which compensation of employees and other subsidies), other current transfers and property income, gross capital formation
and other capital outlays.
Source: OECD National Accounts, Detailed Tables, Vol. II.
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Measuring R&D spending in the SNA
21. The SNA and the Frascati Manual also differ in the way they account for R&D, as they rely on different conceptual frameworks. Moreover, as the Frascati Manual also serves as a manual for the collection of data, it is more directly influenced by feasibility concerns. The following description of the treatment of R&D in the various accounts is largely based on quotations from the SNA 1993 (CEC et al., 1994).
Identifying and valuing R&D in the production account
22. “Research and development by a market producer is an activity undertaken for the purpose of discovering or developing new products, including improved versions or qualities of existing products, or discovering or developing new or more efficient processes of production. Research and development is not an ancillary activity, and a separate establishment should be distinguished for it, when possible. The research and development undertaken by market producers on their own behalf should, in principle, be valued on the basis of the estimated basic prices that would be paid if the research were subcontracted commercially, but is likely to have to be valued on the basis of the total production costs, in practice. Research and development undertaken by specialised commercial research laboratories or institutes is valued by receipts from sales, contracts, commissions, fees, etc., in the usual way. Research and development undertaken by government units, universities, non-profit research institutes, etc., is non-market production and is valued on the basis of the total costs incurred. The activity of research and development is different from teaching and is classified separately in ISIC. In principle, the two activities ought to be distinguished from each other when undertaken within a university or other institute of higher education, although there may be considerable practical difficulties when the same staff divide their time between both activities. There may also be interaction between teaching and research which makes it difficult to separate them, even conceptually, in some cases.”
(CEC et al., 1994, paragraph 6.142.)
23. The definition of R&D by the SNA as an activity aimed at developing new products and processes differs somewhat from the Frascati Manual definition. It characterises R&D only by its purpose, which is innovation, whereas the major characteristic of R&D according to the Frascati Manual is the production of new knowledge. While the two approaches are quite similar, they do not entirely overlap. The SNA definition is closer to the Oslo Manual definition of innovative activities, which encompasses activities such as training and tooling up related to innovation, which are not R&D. In addition, the SNA definition may lead the user to overlook basic research performed by business, for which innovation is only a very indirect goal.
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