1. A Research on the Statistic System of Hi-tech Service Industry Shi Qingyan Research Institute of Statistics Sciences, NBS Tel: (010)68783977 Email: shiqy@stats.gov.cn

2. 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

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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).

9. 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?

10. 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 can 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.

11. 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.

12. 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

13. Hi-tech service industries in relationships with current industrial classification

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

15. 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.

16. 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.

17. 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.

18. Thank you!