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| Contributor | Peter Struijs, Statistics Netherlands |
| Title of paper | Defining Industries in the New Economy |
| Abstract | European business statistics are based on various types of statistical units, such as enterprises and local units, which are classified according to the industrial classification of the EU, NACE Rev.1. For the industries that result, statistics report on a number of variables. The central question addressed in this paper is whether these industries, based on definitions originating from the early 1990s, are adequate for business statistics of the new economy. More specifically, some of the issues covered by the paper are the following: Production is organised in new ways, new business models emerge. Are the current definitions of statistical units still pertinent or have they lost relevance? Will statistical units remain observable? Is the current methodology of NACE Rev.1 adequate for dealing with activities of the new economy? Is there a need for new classification criteria? The current methodology of business statistics is based on the assumption of a sufficiently stable industrial structure. Will this assumption remain true, given the high dynamics of the new economy? The emergence of the new economy is strongly linked with globalisation. What measures are required in order for statistics on national industries to retain their relevance? The paper argues that the current methodological basis of European business statistics is still largely appropriate. However, the system can be upgraded in several ways, which are also discussed in the paper: The statistical system could be more aimed at economic dynamics, by measuring changes in populations of statistical units and tracking changes in activities. There is a growing need for more information on the role of enterprise groups. In addition, more statistics are needed measuring the degree to which national statistical units are internationally linked. Industrial classifications such as NACE Rev.1 can be improved. Where activities are not sufficiently stable, class definitions should not be too narrow. Detailed product information can partly compensate for broad definitions of industries. This applies particularly to services. The European research project CLAMOUR has generated a number of ideas that are particularly relevant in view of the new economy. An example is the development of a system of multiple activity classifications. |
| Full document | Defining Industries in the New Economy |
This page last revised: Friday, 17 May 2002
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