A Research on the Statistic System of Hi-tech Service

Industry

Shi Qingyan

Research Institute of Statistics Sciences, NBSTel: (010)68783977

Email: shiqy@stats.gov.cn

Agenda

Background of the Research The Implication of Hi-tech Service

Industry A Basic Classification of Hi-tech

Service Industry Establishing Statistic System of Hi-

tech Service Industries in China

1. Background of the Research

Hi-tech industrialization, instead of ceasing to develop upon the formation of hi-tech manufacturing industry, has made a rapid expansion into the service sectors.

The current statistic system in China, does not reflect this development trend of hi-tech industry. At present, the relatively sound and complete part in the statistic system is the statistics on the hi-tech manufacturing,

Using hi-tech manufacturing industry-related indicators alone is far from enough in fully reflecting the trend of

the hi-tech industrialization.

1. Background of the Research

Take Beijing as an example By 2006, the added values of the service industry had already

made up 70.9% of the total production values in Beijing. Meanwhile, hi-tech manufacturing industry saw a decline in terms of its proportion in the same period.

1. Background of the Research

The figure indicates that the current statistic system can no longer give a full reflection of the economic development and the ever-changing trend of the structure of the

industries. It is imperative that statistics reflecting the

trend of the hi-tech industrialization in the service industry should be added into the metropolitan statistic system.

2. The Implication of Hi-tech Service Industry

Definition of Hi-tech Industries Hi-tech service industries refer to those

service industries that use networks and information technology, biological technology, as well as use other high and new technologies, as their basis to serve the economy and society, other industries and citizens, and provide high quality and hi-tech intensive and high added value services.

2. The Implication of Hi-tech Service Industry

Service functions of hi-tech service industry mainly include:

(1) Providing new forms of information services Realizing information collection, storage, processing, transmission,

through the utilization of information technology ,computer and networks.

(2) Providing new types of technical services. For example, the computer system service industry, data

processing and computer maintenance and repair industry, etc, which are based upon IT and telecommunication technologies, can offer direct assistance in creating social foundations for promoting the computer technology and applications, as well as facilitating further development in this regard.

2. The Implication of Hi-tech Service Industry

Service functions of hi-tech service industry mainly include (continued)

(3) Providing professional technical services such as meteorological, seismological services, as well as engineering technical services and engineering designs.

(4) Providing services for research and development (R&D).

3. A Basic Classification of Hi-tech Service Industry

Basic Principles for the Statistic Classification

of Hi-tech Service Industry Defining the hi-tech service industries on the basis

of core business activities and core assets Information, networking technologies and network-based

business activities are widely seen in the service industry, leading to a hazy demarcation line between the hi-tech service industry and the conventional service industry

Two aspects should be considered in classification: (1) what are the core business activities of the industry? (2) What are its core assets?

3. A General Classification of Hi-tech Service Industry

Basic Principles for the Statistic Classification of Hi-tech Service Industry (continued)

The integrality of Industry as a classification criterion Take the telecommunication industry as an example, it ca

n be divided into fixed line telecommunication and mobile telecommunication services respectively. Yet although hi-tech components contained in them vary to some degree, hi-tech are integrated into both of them and they are bothon the baisi of high technologies. So, they are both be included in hi-tech service industry.

3. A General Classification of Hi-tech Service Industry

Basic Principles for the Statistic Classification of Hi-tech Service Industry (continued)

Defining hi-tech service industries under the framework of current industrial classification standards

The current industrial classification gives a full

reflection of the structure of the economy. As a general statistic outline, the industrial classification standards provide a unified set of classification standards to the economic statistics. Only when hi-tech service industry as a specific newly emerged service industry is defined under the framework of current industrial classification standards can we pave a smooth path for the implementation of the hi-tech service industrial statistics.

3. A General Classification of Hi-tech Service Industry

Basic classification of Hi-tech Service

Industries in China According to above implications and criteria

described above, we can find that hi-tech service industries can be divided into 11 categories, whose relationships with the current industrial classifications are presented in Table below

Hi-tech service industries in relationships with

current industrial classification Current Industrial Classification Hi-tech service

industries Section Division Group Class

Name G Information transmission,

computer services, and software industry

60 Telecommunications and other information transmission service industries

601 Telecommunications 6011 Fixed lined telecommunication

services 6012 Mobile telecommunication

services 6013 Other telecommunication

services 603 Broadcasting and television

transmission services 6031 Cable Broadcasting and

television transmission services

6032 Wireless Broadcasting and television transmission services

Telecommunication Value-added services

602 6020 Internet information services Network information services

604 6040 Satellite transmission services

satellite transmission service

61 Computer service industry 611 6110 Computer system service 612 6120 Data processing 613 6130 Computer maintenance 619 6190 Other computer services

Computer service

62 Software industry Software industry

Hi-tech service industries in relationships with current industrial classification(continued)

M

Scientific research, technical services and geological reconnaissance

75 Research and experimental development

Scientific and technological R&D

76 Professional technical service industry

761— 764 Mapping services in meteorology, seismology, and oceanography.

765 7650 Technical inspection and testing

766 7660 Environmental monitoring

Professional technical service

767 Engineering technology and planning management

7671 Engineering management services

7672 Engineering reconnaissance designs

7673 Planning management 769 7690 Other professional technical

services

Engineering technology service

77 Scientific exchanges and promotion service industry

771 7710 Technological promotion services

Technology promotion service

772 7720 Scientific and technological match-making services

technology brokerage

78 Geological reconnaissance 781 Mineral geological

reconnaissance 7811 Energy mineral geological

prospect 7812 Solid mineral geological

prospect 7819 Other mineral geological

prospecting 782 7820 Basic geological prospecting 783 7830 Geological prospecting

technical services

Geological prospect technical service

4. Establishing Statistic System of Hi-tech Service Industries in China Current Situations of Statistics of Hi-tech Service Industry It was not until after the first tertiary

industries census conducted in China in 1992 that some relatively complete data about service industries were obtained.

In 2002, aimed to keep pace with the social and economic development, National Bureau of Statistics revised its industrial classification standards. The first economic census conducted in 2004, which was implemented under the 2002 industrial classification standards, made it possible that some detailed data can be obtained for hi-tech service industry in China.

4. Establishing Statistic System of Hi-tech Service Industries in China

Current Situations of Statistics of Hi-tech Service Industry (Continued)

There are some flaws in the statistic system of the service industry in China, which makes it unable to satisfy the needs of statistics of the hi-tech industry.

(1) there exist enormous differences between methodologies of annual regular statistics and economic census. In census years, the detailed information for most of enterprises of hi-tech service industries can be available. But in non-census years, statistics for some classifications of hi-tech service such as “computer system service”, “data process”, “engineering technology service” etc. are almost in blank.

(2) Whether in the economic census or in annual regular statistics, no any information for R&D and innovation for service industries can be obtained.

Because of the technology-intensive nature of hi-tech industry, R&D and innovation statistics should be the important contents that characterize hi-tech service industries, and as a matter of course, they should also be included into statistics.

4. Establishing Statistic System of Hi-tech Service Industries in China

Two aspects should be included to establish the statistic system of hi-tech service industries in China

The first aspect relates to statistical techniques, which includes definition and classification standards of hi-tech industries, statistic objects, scope of statistics, and design of indicators.

Another aspect is to establish institutions for hi-tech industry

statistics, which includes establishing organizations for hi-tech industry statistics.

According to the principle of combining both the comprehensive statistics and departmental statistics, it is suggested that relevant departments should undertake the yet-to-be accomplished statistics of hi-tech industries such as “computer system service”, “data process”, “engineering technology service” etc. under the regulations regarding the statistics of service industries.

Thank you!