CSO Enterprise Statistics Liaison GroupJonathan HealySenior Economist

23/11/11

Forfás Surveys: Background

►Forfás has dedicated Surveys Unit (4.5 staff)

►Collects enterprise data on Agency clients as per Forfás remit in Industrial Development Act (1993)

►Collects R&D data to fulfil national and international data obligations

Institutional Arrangements for Enterprise Policy

Forfás Policy Advisory Board

for Enterprise, Trade, Science

Science Technology and Innovation

IDA Ireland Main agency responsible for

direct foreign investment Base of 750 firms >10 employees

Enterprise Ireland Main agency responsible for

Irish industry Base of 3,000 core clients

Shannon Development Responsible for economic

development in Shannon area Base of 100 firms > 10 employees

Udaras na Gaeltachta Promotion of economic

development in the Gaeltacht Base of 250 firms > 10 employees

Government Departments (Department of Jobs, Enterprise and Innovation

in particular)

Overview of Forfás Surveys

►Enterprise

• Annual Business Survey of Economic Impact

• Annual Employment Survey

►S&T

• Science Budget (GovERD / GBAORD)

• Higher Education R&D (HERD)

• Business Expenditure on R&D (BERD) with CSO

• Community Innovation Survey (CIS) with CSO

1.Annual Business Survey of Economic Impact

ABSEI► Tracks performance of Agency-assisted firms

► Since 2000 (succeeded the IEE survey)

► Variables relating to the output of firms and expenditure by these firms in the economy

► Information yielded is a key input into a framework of performance indicators designed to assess the economic contribution of agency-assisted firms

► Data on individual firms are also used by the agencies in their day-to-day working relationship with their clients

► Forfás co-ordinates survey across the 4 agencies and maintains survey’s integrity.

► Consultants hired to undertake survey (send and collect questionnaires, aggregation of results, etc.)

ABSEI Methodology

► Data collection via postal questionnaire and electronic option (from 2011)

► Survey population is client base of each of the development agencies with 10 + employees operating within manufacturing and internationally traded services

Agency Enterprise Ireland 3,000 IDA Ireland 750 Shannon Development 100 Údarás na Gaeltachta 250 Total 4,100

ABSEI Core Variables

►4-page questionnaire covering: Sales and Exports

Domestic sales Export sales Detailed country by country breakdown of destination of exports Share of sales accounted for by new products

Payroll Costs and Workforce

Total wages and salaries Number of employees

Materials and Services

Cost of all materials and components Proportion of materials produced in Ireland Cost of all bought-in services Proportion of services sourced in Ireland Other expense items from profit and loss account

Corporation Tax

Corporation tax payments and estimates for future years

R&D Expenditure

Persons employed on in-house R&D Expenditure on in-house R&D Expenditure on sub-contracted R&D

Training Expenditure

Expenditure on formal, structured training

Breakdown of Results

► As well as producing aggregate information for each agency, disaggregated results are produced:

► Response rate typically ~ 60%, so this enables good disaggregation

► Extremely high level of follow-up required to achieve 60% rate

Industry Sector Breakdowns using NACE Rev 2 classification into approx. 21 groupings (e.g. Food, Drink and Tobacco; Textiles and Clothing etc.)

Nationality of ownership Breakdown between Irish-owned and Foreign-owned firms

Region Breakdown into regional groups as appropriate (Dublin, Rest of Southern and Eastern region, BMW region)

ABSEI Methodology

1. Initial mail-out

2. Follow-up

3. Data management and validation

4. Weighting

5. Data Analysis

Data Validations

1. Initial visual screening of each survey

2. Data entry of cleared surveys into customised data repository

3. Internal review of validation sheets prior to agency validation

4. Validation meetings with agencies (2 weeks) to double check returns with relevant Development Advisors (DAs) and to flag non-response firms for follow up with DAs

5. Agency reviews of preliminary weighted results in advance of final tables

Weighting of Data

► Weighting scheme devised by consultants to take account of non-respondents

► The following variables are used to stratify each company into homogeneous groups; agency, sector/department, size, region, relationship and nationality

► Employment data (gathered from Forfás Annual Employment Survey) used to weight up for non-respondents within each stratum

Timeframe

►EI questionnaires sent by end-December

►All others by end-March

►Results provided to Forfás by end-September

►Presented to Forfás Board October

►Publication by end of year (T+12 months)

Summary Results of 2010 ABSEI

S.1. Summary Table of Headline Indicators for the 2010 ABSEI

2010 (€billions) Share of total, 2010

Foreign-

owned

Irish-

Owned

All Foreign-

owned

Irish-

Owned

All

Sales 118.88 27.18 146.06 81% 19% 100%

Exports 114.63 12.37 126.99 90% 10% 100%

Value Added 52.74 11.18 63.92 83% 17% 100%

Direct Expenditure 17.95 17.00 34.95 51% 49% 100%

Year-on-year difference in exports and domestic sales growth

-35%-30%-25%-20%-15%-10%

-5%0%5%

10%15%20%25%30%35%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (e)

Growth in exports Growth in domestic sales

Irish Economy Expenditure

-40%

-30%

-20%

-10%

0%

10%

20%

30%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Payroll Irish Materials Irish Services

Export Sales and Irish Economy Spend

0

20

40

60

80

100

120

140

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

€bi

llion

Exports Direct Expenditure in the Irish Economy

Exports as % of Total Sales of Irish Firms by Sector

0%

10%

20%

30%

40%

50%

60%

70%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(e)

Total - All Sectors Food/Drink/Tobacco

Traditional Manufacturing Modern Manufacturing & Energy

Information, Communications & Computer Business , Financial & Other Services

2. Annual Employment Survey

AES: Overview► Annual census of employment in all

manufacturing and services companies supported by development agencies

► The survey takes place in October and November

► ~8,000 questionnaires are posted to relevant firms

► Clients are asked to make an accurate estimation of Permanent Full-time Jobs and ‘Other Jobs’ as at 31 October of that year

► Survey has been carried out each year since 1973

► Results are used to inform the Development Agencies’ End of Year Statements and Annual Reports as well as to inform policy analysis conducted by Forfás

AES (cont’d)

►Regional, sectoral, Agency, and time-series analysis undertaken

►Variables include: Job Gains, Losses, Net Change, 1st-time jobs, PFT/TPT

►Results can be disaggregated to a fine level (DED/ county, NACE) due to high response rate (>85%) with non-responses imputed by DAs

►ESS database used throughout year for analysis, including PQs

Sectoral Proportions in Permanent/ FT

Employment within Irish Agency-Assisted

Firms: 2001-Vs-2010

Cons, Utilities and Primary Production

5%

M'facturing

74%

Business, Fi-

nancial and Other Service

s9%

Info, Comms, and Computer

Services12%

2001

Construction, Utilities and Primary Pro-

duction6%

M'fac-tur-ing62%

Business, Fi-

nancial and Other Service

s18%

In-forma-tion

, Co

mms,

and Computer Service

s14%

2010

Stats at a Glance

► Key Forfás Enterprise and R&D Stats published in Forfás Statistics at a Glance publications

1. Economic Context and Output

2. International Exports of Goods & Services

3. International Imports of Goods & Services

4. Direct Investment (ODI/FDI)

5. National Expenditure on R&D

6. Expenditure on R&D by Sector: Business, Higher Education and Public

7. R&D Workforce

8. Innovation Stats

9. Other S&T Indicators

For more information

►www.forfas.ie/publications

►Jonathan.Healy@forfas.ie