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Digital Economy 2000 Appendices ECONOMICS AND STATISTICS ADMINISTRATION U.S. Department of Commerce June 2000

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Page 1: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 Appendices

ECONOMICS AND STATISTICS

ADMINISTRATION

US Department of Commerce June 2000

DIGITAL ECONOMY 2000 APPENDICES

Economics and Statistics Administration Office of Policy Development

For further information contact

David Henry Appendix to Chapter III davidhenrymaildocgov

Sandra Cooke Appendix to Chapter V sandracookemaildocgov

Dennis Pastore Appendix to Chapter VI dennispastoremaildocgov

DIGITAL ECONOMY 2000

METHODOLOGY DATA SOURCES AND APPENDIX TABLES

Appendix to Chapter III - Information Technology Industries 1

Defining Information Technology Producing Industries 1

Measuring Information Technology Producing Industries 3

GPO of IT-Producing Industries 1990-1997 5

GPO of IT-Producing Industries 1998-2000 9

Real Dollar GPO of IT-Producing Industries 9

Price Effects of IT-Producing Industries 11

IT-Producing Industries Contribution to Real Economic Growth 12

Industry Investment in IT Equipment and Software 12

Research amp Development in IT-Producing Industries 13

Appendix to Chapter V - The Information Technology Workforce 15

IT-Producing Industry Employment 15

IT-Producing Industry Wages 17

IT Occupational Employment 17

Education and Training Requirements by Occupation 20

IT Occupational Wages 22

Appendix to Chapter VI - Trade in Information Technology Goods and Services 25

APPENDIX TABLES

Table 31 Information Technology Producing Industries NAICS to SIC Concordance 2

Table 32 Information Technology Producing Industries Gross Product Originating 6

Table 33 Information Technology Producing Industries Real Gross Product Originating 10

Table 34 Information Technology Producing Industries Research and Development Expenditures Company-Funded 13

Table 51 Information Technology Producing Industries Employment Trends 1992 to 1998 16

Table 52 Information Technology Producing Industries Annual Wages per Worker 1992 to 1998 18

Table 53 Information Technology Occupations Employment and Education Training Requirements 1992 to 1998 21

Table 54 Information Technology Occupations Wages 1998 23

Table 61 US Trade in IT Goods Exports Imports and Trade Balance 1990 to 1999 26

Table 62 US Trade in IT Services 1990 to 1998 29

Digital Economy 2000 ndash Appendices Page 1

APPENDIX TO CHAPTER III

INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

This Appendix describes the sources of data and methods used to assess the economic impacts of Information Technology (IT) Producing industries that were presented in Chapter III of the Digital Economy 2000 (DE 2000) report

DEFINING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The IT-producing industries selected for the DE 2000 report are those ldquoindustries that produce process or transmit information goods and services as either intermediate demand (inputs to production of other industries) or as final products (goods and services bought by consumers business investors government or forexports)rdquo The selected IT-producing industries also include those that supply the goods and services necessary for the Internet and electronic commerce (e-commerce) to operatemdashie provide the products and services for the Internet infrastructure IT-producing industries include manufacturers of some general and specialized electronic components computers and peripheral equipment specialized measuring and testing instruments telecommunications equipment and prepackaged software IT-producing industries also include computer software and telecommunications service providers (Appendix Table 31)

The IT-producing industries in this report followthe definitions in the Office of Management and Budgetrsquos 1987 Standard Industrial Classification (SIC) manual Annual estimates of Gross Product Originating (GPO) for the IT-producing sector bySIC industryand portions ofSIC industries were developed for the 1990 through 2000 period

The SIC basis was used even though Census of Manufacturers data for 1997 were released under the North American Industry Classification System (NAICS) SIC industry definitions for IT-producing industries were used in this analysis because of the greater availability of SIC industry time series data Industry data under NAICS were only available for manufacturing sectors for 1997 and in some cases for 1992 Since Census Annual Survey of Manufacturersrsquo shipments data for 1990 1991 and 1993 through 1996 were released on an SIC basis it was easier to convert the 1992 and 1997 NAICS data to anSIC basis thanto convert data from all the other years to NAICS Another reasonfor using SICs was

Page 2 Digital Economy 2000 ndash Appendices

Appendix Table 31 Information Technology Producing Industries

NAICS to SIC Concordance

Hardware Industries 1997 NAICS 1987 SIC Computers and computer equipment and

calculating and office machines 334111 2 3 9334418pt 3571 2 5 7pt 333311pt 3pt 3578 9pt

Wholesale trade of computers 421430pt 5045pt Retail trade of computers 443120pt 5734pt Electron tubes 334411 3671 Printed circuit boards 334412 3672 Semiconductors 334413 3674 Passive electronic components 334414 5 6 7 8pt 9 3675 6 7 8 9pt

3661pt Industrial instruments for measurement 334513 3823

Instruments for measuring electricity 334514pt 334515 3825pt

Laboratory analytical instruments 334516 3826

SoftwareService Industries Computer programming services 541511 7371

Prepackaged software 511210 334611 7372

Wholesale trade of software 421430pt 5045pt

Retail trade of software 443120pt 5734pt

Computer integrated system design 541512 7373

Computer processing data preparation 514210 7374

Information retrieval services 514191 9 7375

Computer services management 541513 7376

Computer rental and leasing 532420 7377

Computer maintenance and repair 811212 7378 Computer related services nec 541519 7379

Communications Services Industries Telephone and telegraph communications 513310 21 22 30 481 4822 4899

40 90 Radio broadcasting 513111 2 4832 Television broadcasting 513120 4833 Cable and other pay TV services 513210 20 4841

Communications Equipment Industries Household audio and video equipment 334310 3651 3679pt

Telephone and telegraph equipment 334210 334418pt 3661pt 3577pt 3679pt

Radio and TV communications equipment 334220 334290 3663 3679pt 3699

Magnetic and optical recording media 334613 3695 3577pt

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 2: Digital Economy 2000 Appendices - commerce.gov

DIGITAL ECONOMY 2000 APPENDICES

Economics and Statistics Administration Office of Policy Development

For further information contact

David Henry Appendix to Chapter III davidhenrymaildocgov

Sandra Cooke Appendix to Chapter V sandracookemaildocgov

Dennis Pastore Appendix to Chapter VI dennispastoremaildocgov

DIGITAL ECONOMY 2000

METHODOLOGY DATA SOURCES AND APPENDIX TABLES

Appendix to Chapter III - Information Technology Industries 1

Defining Information Technology Producing Industries 1

Measuring Information Technology Producing Industries 3

GPO of IT-Producing Industries 1990-1997 5

GPO of IT-Producing Industries 1998-2000 9

Real Dollar GPO of IT-Producing Industries 9

Price Effects of IT-Producing Industries 11

IT-Producing Industries Contribution to Real Economic Growth 12

Industry Investment in IT Equipment and Software 12

Research amp Development in IT-Producing Industries 13

Appendix to Chapter V - The Information Technology Workforce 15

IT-Producing Industry Employment 15

IT-Producing Industry Wages 17

IT Occupational Employment 17

Education and Training Requirements by Occupation 20

IT Occupational Wages 22

Appendix to Chapter VI - Trade in Information Technology Goods and Services 25

APPENDIX TABLES

Table 31 Information Technology Producing Industries NAICS to SIC Concordance 2

Table 32 Information Technology Producing Industries Gross Product Originating 6

Table 33 Information Technology Producing Industries Real Gross Product Originating 10

Table 34 Information Technology Producing Industries Research and Development Expenditures Company-Funded 13

Table 51 Information Technology Producing Industries Employment Trends 1992 to 1998 16

Table 52 Information Technology Producing Industries Annual Wages per Worker 1992 to 1998 18

Table 53 Information Technology Occupations Employment and Education Training Requirements 1992 to 1998 21

Table 54 Information Technology Occupations Wages 1998 23

Table 61 US Trade in IT Goods Exports Imports and Trade Balance 1990 to 1999 26

Table 62 US Trade in IT Services 1990 to 1998 29

Digital Economy 2000 ndash Appendices Page 1

APPENDIX TO CHAPTER III

INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

This Appendix describes the sources of data and methods used to assess the economic impacts of Information Technology (IT) Producing industries that were presented in Chapter III of the Digital Economy 2000 (DE 2000) report

DEFINING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The IT-producing industries selected for the DE 2000 report are those ldquoindustries that produce process or transmit information goods and services as either intermediate demand (inputs to production of other industries) or as final products (goods and services bought by consumers business investors government or forexports)rdquo The selected IT-producing industries also include those that supply the goods and services necessary for the Internet and electronic commerce (e-commerce) to operatemdashie provide the products and services for the Internet infrastructure IT-producing industries include manufacturers of some general and specialized electronic components computers and peripheral equipment specialized measuring and testing instruments telecommunications equipment and prepackaged software IT-producing industries also include computer software and telecommunications service providers (Appendix Table 31)

The IT-producing industries in this report followthe definitions in the Office of Management and Budgetrsquos 1987 Standard Industrial Classification (SIC) manual Annual estimates of Gross Product Originating (GPO) for the IT-producing sector bySIC industryand portions ofSIC industries were developed for the 1990 through 2000 period

The SIC basis was used even though Census of Manufacturers data for 1997 were released under the North American Industry Classification System (NAICS) SIC industry definitions for IT-producing industries were used in this analysis because of the greater availability of SIC industry time series data Industry data under NAICS were only available for manufacturing sectors for 1997 and in some cases for 1992 Since Census Annual Survey of Manufacturersrsquo shipments data for 1990 1991 and 1993 through 1996 were released on an SIC basis it was easier to convert the 1992 and 1997 NAICS data to anSIC basis thanto convert data from all the other years to NAICS Another reasonfor using SICs was

Page 2 Digital Economy 2000 ndash Appendices

Appendix Table 31 Information Technology Producing Industries

NAICS to SIC Concordance

Hardware Industries 1997 NAICS 1987 SIC Computers and computer equipment and

calculating and office machines 334111 2 3 9334418pt 3571 2 5 7pt 333311pt 3pt 3578 9pt

Wholesale trade of computers 421430pt 5045pt Retail trade of computers 443120pt 5734pt Electron tubes 334411 3671 Printed circuit boards 334412 3672 Semiconductors 334413 3674 Passive electronic components 334414 5 6 7 8pt 9 3675 6 7 8 9pt

3661pt Industrial instruments for measurement 334513 3823

Instruments for measuring electricity 334514pt 334515 3825pt

Laboratory analytical instruments 334516 3826

SoftwareService Industries Computer programming services 541511 7371

Prepackaged software 511210 334611 7372

Wholesale trade of software 421430pt 5045pt

Retail trade of software 443120pt 5734pt

Computer integrated system design 541512 7373

Computer processing data preparation 514210 7374

Information retrieval services 514191 9 7375

Computer services management 541513 7376

Computer rental and leasing 532420 7377

Computer maintenance and repair 811212 7378 Computer related services nec 541519 7379

Communications Services Industries Telephone and telegraph communications 513310 21 22 30 481 4822 4899

40 90 Radio broadcasting 513111 2 4832 Television broadcasting 513120 4833 Cable and other pay TV services 513210 20 4841

Communications Equipment Industries Household audio and video equipment 334310 3651 3679pt

Telephone and telegraph equipment 334210 334418pt 3661pt 3577pt 3679pt

Radio and TV communications equipment 334220 334290 3663 3679pt 3699

Magnetic and optical recording media 334613 3695 3577pt

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 3: Digital Economy 2000 Appendices - commerce.gov

DIGITAL ECONOMY 2000

METHODOLOGY DATA SOURCES AND APPENDIX TABLES

Appendix to Chapter III - Information Technology Industries 1

Defining Information Technology Producing Industries 1

Measuring Information Technology Producing Industries 3

GPO of IT-Producing Industries 1990-1997 5

GPO of IT-Producing Industries 1998-2000 9

Real Dollar GPO of IT-Producing Industries 9

Price Effects of IT-Producing Industries 11

IT-Producing Industries Contribution to Real Economic Growth 12

Industry Investment in IT Equipment and Software 12

Research amp Development in IT-Producing Industries 13

Appendix to Chapter V - The Information Technology Workforce 15

IT-Producing Industry Employment 15

IT-Producing Industry Wages 17

IT Occupational Employment 17

Education and Training Requirements by Occupation 20

IT Occupational Wages 22

Appendix to Chapter VI - Trade in Information Technology Goods and Services 25

APPENDIX TABLES

Table 31 Information Technology Producing Industries NAICS to SIC Concordance 2

Table 32 Information Technology Producing Industries Gross Product Originating 6

Table 33 Information Technology Producing Industries Real Gross Product Originating 10

Table 34 Information Technology Producing Industries Research and Development Expenditures Company-Funded 13

Table 51 Information Technology Producing Industries Employment Trends 1992 to 1998 16

Table 52 Information Technology Producing Industries Annual Wages per Worker 1992 to 1998 18

Table 53 Information Technology Occupations Employment and Education Training Requirements 1992 to 1998 21

Table 54 Information Technology Occupations Wages 1998 23

Table 61 US Trade in IT Goods Exports Imports and Trade Balance 1990 to 1999 26

Table 62 US Trade in IT Services 1990 to 1998 29

Digital Economy 2000 ndash Appendices Page 1

APPENDIX TO CHAPTER III

INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

This Appendix describes the sources of data and methods used to assess the economic impacts of Information Technology (IT) Producing industries that were presented in Chapter III of the Digital Economy 2000 (DE 2000) report

DEFINING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The IT-producing industries selected for the DE 2000 report are those ldquoindustries that produce process or transmit information goods and services as either intermediate demand (inputs to production of other industries) or as final products (goods and services bought by consumers business investors government or forexports)rdquo The selected IT-producing industries also include those that supply the goods and services necessary for the Internet and electronic commerce (e-commerce) to operatemdashie provide the products and services for the Internet infrastructure IT-producing industries include manufacturers of some general and specialized electronic components computers and peripheral equipment specialized measuring and testing instruments telecommunications equipment and prepackaged software IT-producing industries also include computer software and telecommunications service providers (Appendix Table 31)

The IT-producing industries in this report followthe definitions in the Office of Management and Budgetrsquos 1987 Standard Industrial Classification (SIC) manual Annual estimates of Gross Product Originating (GPO) for the IT-producing sector bySIC industryand portions ofSIC industries were developed for the 1990 through 2000 period

The SIC basis was used even though Census of Manufacturers data for 1997 were released under the North American Industry Classification System (NAICS) SIC industry definitions for IT-producing industries were used in this analysis because of the greater availability of SIC industry time series data Industry data under NAICS were only available for manufacturing sectors for 1997 and in some cases for 1992 Since Census Annual Survey of Manufacturersrsquo shipments data for 1990 1991 and 1993 through 1996 were released on an SIC basis it was easier to convert the 1992 and 1997 NAICS data to anSIC basis thanto convert data from all the other years to NAICS Another reasonfor using SICs was

Page 2 Digital Economy 2000 ndash Appendices

Appendix Table 31 Information Technology Producing Industries

NAICS to SIC Concordance

Hardware Industries 1997 NAICS 1987 SIC Computers and computer equipment and

calculating and office machines 334111 2 3 9334418pt 3571 2 5 7pt 333311pt 3pt 3578 9pt

Wholesale trade of computers 421430pt 5045pt Retail trade of computers 443120pt 5734pt Electron tubes 334411 3671 Printed circuit boards 334412 3672 Semiconductors 334413 3674 Passive electronic components 334414 5 6 7 8pt 9 3675 6 7 8 9pt

3661pt Industrial instruments for measurement 334513 3823

Instruments for measuring electricity 334514pt 334515 3825pt

Laboratory analytical instruments 334516 3826

SoftwareService Industries Computer programming services 541511 7371

Prepackaged software 511210 334611 7372

Wholesale trade of software 421430pt 5045pt

Retail trade of software 443120pt 5734pt

Computer integrated system design 541512 7373

Computer processing data preparation 514210 7374

Information retrieval services 514191 9 7375

Computer services management 541513 7376

Computer rental and leasing 532420 7377

Computer maintenance and repair 811212 7378 Computer related services nec 541519 7379

Communications Services Industries Telephone and telegraph communications 513310 21 22 30 481 4822 4899

40 90 Radio broadcasting 513111 2 4832 Television broadcasting 513120 4833 Cable and other pay TV services 513210 20 4841

Communications Equipment Industries Household audio and video equipment 334310 3651 3679pt

Telephone and telegraph equipment 334210 334418pt 3661pt 3577pt 3679pt

Radio and TV communications equipment 334220 334290 3663 3679pt 3699

Magnetic and optical recording media 334613 3695 3577pt

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 4: Digital Economy 2000 Appendices - commerce.gov

APPENDIX TABLES

Table 31 Information Technology Producing Industries NAICS to SIC Concordance 2

Table 32 Information Technology Producing Industries Gross Product Originating 6

Table 33 Information Technology Producing Industries Real Gross Product Originating 10

Table 34 Information Technology Producing Industries Research and Development Expenditures Company-Funded 13

Table 51 Information Technology Producing Industries Employment Trends 1992 to 1998 16

Table 52 Information Technology Producing Industries Annual Wages per Worker 1992 to 1998 18

Table 53 Information Technology Occupations Employment and Education Training Requirements 1992 to 1998 21

Table 54 Information Technology Occupations Wages 1998 23

Table 61 US Trade in IT Goods Exports Imports and Trade Balance 1990 to 1999 26

Table 62 US Trade in IT Services 1990 to 1998 29

Digital Economy 2000 ndash Appendices Page 1

APPENDIX TO CHAPTER III

INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

This Appendix describes the sources of data and methods used to assess the economic impacts of Information Technology (IT) Producing industries that were presented in Chapter III of the Digital Economy 2000 (DE 2000) report

DEFINING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The IT-producing industries selected for the DE 2000 report are those ldquoindustries that produce process or transmit information goods and services as either intermediate demand (inputs to production of other industries) or as final products (goods and services bought by consumers business investors government or forexports)rdquo The selected IT-producing industries also include those that supply the goods and services necessary for the Internet and electronic commerce (e-commerce) to operatemdashie provide the products and services for the Internet infrastructure IT-producing industries include manufacturers of some general and specialized electronic components computers and peripheral equipment specialized measuring and testing instruments telecommunications equipment and prepackaged software IT-producing industries also include computer software and telecommunications service providers (Appendix Table 31)

The IT-producing industries in this report followthe definitions in the Office of Management and Budgetrsquos 1987 Standard Industrial Classification (SIC) manual Annual estimates of Gross Product Originating (GPO) for the IT-producing sector bySIC industryand portions ofSIC industries were developed for the 1990 through 2000 period

The SIC basis was used even though Census of Manufacturers data for 1997 were released under the North American Industry Classification System (NAICS) SIC industry definitions for IT-producing industries were used in this analysis because of the greater availability of SIC industry time series data Industry data under NAICS were only available for manufacturing sectors for 1997 and in some cases for 1992 Since Census Annual Survey of Manufacturersrsquo shipments data for 1990 1991 and 1993 through 1996 were released on an SIC basis it was easier to convert the 1992 and 1997 NAICS data to anSIC basis thanto convert data from all the other years to NAICS Another reasonfor using SICs was

Page 2 Digital Economy 2000 ndash Appendices

Appendix Table 31 Information Technology Producing Industries

NAICS to SIC Concordance

Hardware Industries 1997 NAICS 1987 SIC Computers and computer equipment and

calculating and office machines 334111 2 3 9334418pt 3571 2 5 7pt 333311pt 3pt 3578 9pt

Wholesale trade of computers 421430pt 5045pt Retail trade of computers 443120pt 5734pt Electron tubes 334411 3671 Printed circuit boards 334412 3672 Semiconductors 334413 3674 Passive electronic components 334414 5 6 7 8pt 9 3675 6 7 8 9pt

3661pt Industrial instruments for measurement 334513 3823

Instruments for measuring electricity 334514pt 334515 3825pt

Laboratory analytical instruments 334516 3826

SoftwareService Industries Computer programming services 541511 7371

Prepackaged software 511210 334611 7372

Wholesale trade of software 421430pt 5045pt

Retail trade of software 443120pt 5734pt

Computer integrated system design 541512 7373

Computer processing data preparation 514210 7374

Information retrieval services 514191 9 7375

Computer services management 541513 7376

Computer rental and leasing 532420 7377

Computer maintenance and repair 811212 7378 Computer related services nec 541519 7379

Communications Services Industries Telephone and telegraph communications 513310 21 22 30 481 4822 4899

40 90 Radio broadcasting 513111 2 4832 Television broadcasting 513120 4833 Cable and other pay TV services 513210 20 4841

Communications Equipment Industries Household audio and video equipment 334310 3651 3679pt

Telephone and telegraph equipment 334210 334418pt 3661pt 3577pt 3679pt

Radio and TV communications equipment 334220 334290 3663 3679pt 3699

Magnetic and optical recording media 334613 3695 3577pt

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 5: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 1

APPENDIX TO CHAPTER III

INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

This Appendix describes the sources of data and methods used to assess the economic impacts of Information Technology (IT) Producing industries that were presented in Chapter III of the Digital Economy 2000 (DE 2000) report

DEFINING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The IT-producing industries selected for the DE 2000 report are those ldquoindustries that produce process or transmit information goods and services as either intermediate demand (inputs to production of other industries) or as final products (goods and services bought by consumers business investors government or forexports)rdquo The selected IT-producing industries also include those that supply the goods and services necessary for the Internet and electronic commerce (e-commerce) to operatemdashie provide the products and services for the Internet infrastructure IT-producing industries include manufacturers of some general and specialized electronic components computers and peripheral equipment specialized measuring and testing instruments telecommunications equipment and prepackaged software IT-producing industries also include computer software and telecommunications service providers (Appendix Table 31)

The IT-producing industries in this report followthe definitions in the Office of Management and Budgetrsquos 1987 Standard Industrial Classification (SIC) manual Annual estimates of Gross Product Originating (GPO) for the IT-producing sector bySIC industryand portions ofSIC industries were developed for the 1990 through 2000 period

The SIC basis was used even though Census of Manufacturers data for 1997 were released under the North American Industry Classification System (NAICS) SIC industry definitions for IT-producing industries were used in this analysis because of the greater availability of SIC industry time series data Industry data under NAICS were only available for manufacturing sectors for 1997 and in some cases for 1992 Since Census Annual Survey of Manufacturersrsquo shipments data for 1990 1991 and 1993 through 1996 were released on an SIC basis it was easier to convert the 1992 and 1997 NAICS data to anSIC basis thanto convert data from all the other years to NAICS Another reasonfor using SICs was

Page 2 Digital Economy 2000 ndash Appendices

Appendix Table 31 Information Technology Producing Industries

NAICS to SIC Concordance

Hardware Industries 1997 NAICS 1987 SIC Computers and computer equipment and

calculating and office machines 334111 2 3 9334418pt 3571 2 5 7pt 333311pt 3pt 3578 9pt

Wholesale trade of computers 421430pt 5045pt Retail trade of computers 443120pt 5734pt Electron tubes 334411 3671 Printed circuit boards 334412 3672 Semiconductors 334413 3674 Passive electronic components 334414 5 6 7 8pt 9 3675 6 7 8 9pt

3661pt Industrial instruments for measurement 334513 3823

Instruments for measuring electricity 334514pt 334515 3825pt

Laboratory analytical instruments 334516 3826

SoftwareService Industries Computer programming services 541511 7371

Prepackaged software 511210 334611 7372

Wholesale trade of software 421430pt 5045pt

Retail trade of software 443120pt 5734pt

Computer integrated system design 541512 7373

Computer processing data preparation 514210 7374

Information retrieval services 514191 9 7375

Computer services management 541513 7376

Computer rental and leasing 532420 7377

Computer maintenance and repair 811212 7378 Computer related services nec 541519 7379

Communications Services Industries Telephone and telegraph communications 513310 21 22 30 481 4822 4899

40 90 Radio broadcasting 513111 2 4832 Television broadcasting 513120 4833 Cable and other pay TV services 513210 20 4841

Communications Equipment Industries Household audio and video equipment 334310 3651 3679pt

Telephone and telegraph equipment 334210 334418pt 3661pt 3577pt 3679pt

Radio and TV communications equipment 334220 334290 3663 3679pt 3699

Magnetic and optical recording media 334613 3695 3577pt

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 6: Digital Economy 2000 Appendices - commerce.gov

Page 2 Digital Economy 2000 ndash Appendices

Appendix Table 31 Information Technology Producing Industries

NAICS to SIC Concordance

Hardware Industries 1997 NAICS 1987 SIC Computers and computer equipment and

calculating and office machines 334111 2 3 9334418pt 3571 2 5 7pt 333311pt 3pt 3578 9pt

Wholesale trade of computers 421430pt 5045pt Retail trade of computers 443120pt 5734pt Electron tubes 334411 3671 Printed circuit boards 334412 3672 Semiconductors 334413 3674 Passive electronic components 334414 5 6 7 8pt 9 3675 6 7 8 9pt

3661pt Industrial instruments for measurement 334513 3823

Instruments for measuring electricity 334514pt 334515 3825pt

Laboratory analytical instruments 334516 3826

SoftwareService Industries Computer programming services 541511 7371

Prepackaged software 511210 334611 7372

Wholesale trade of software 421430pt 5045pt

Retail trade of software 443120pt 5734pt

Computer integrated system design 541512 7373

Computer processing data preparation 514210 7374

Information retrieval services 514191 9 7375

Computer services management 541513 7376

Computer rental and leasing 532420 7377

Computer maintenance and repair 811212 7378 Computer related services nec 541519 7379

Communications Services Industries Telephone and telegraph communications 513310 21 22 30 481 4822 4899

40 90 Radio broadcasting 513111 2 4832 Television broadcasting 513120 4833 Cable and other pay TV services 513210 20 4841

Communications Equipment Industries Household audio and video equipment 334310 3651 3679pt

Telephone and telegraph equipment 334210 334418pt 3661pt 3577pt 3679pt

Radio and TV communications equipment 334220 334290 3663 3679pt 3699

Magnetic and optical recording media 334613 3695 3577pt

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 7: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 3

that Census revenue data for computer software and telecommunications services industries were not yet converted to NAICS

Differences in industry classifications between SIC industries and NAICS industries however caused problems in the developing of a consistent GPO time series for the IT-producing industries For example while 1997 industry shipments for Other computer peripheralequipment manufacturing NAICS 334119 includes shipments data for its counterpart industry under the SIC system (SIC 3577) it also includes shipments for part of Calculating and Accounting Equipment (SIC 3578) These are manufacturersrsquo shipments of Point of Sales Terminals and Fund Transfer Devices products produced formerly under industrySIC 3578 The other part of shipments for the Calculating and Accounting Equipment (SIC 3578) industry is now included in Office Machinery Manufacturing (NAICS 333313) Thus in 1997 a portion of shipments for the IT-producing industry Calculating and office machines (SICs 3578 and 3579) was added to the IT-producing industry Computers and equipment (SICs 3571 3572 3575 and 3577)

Another example of redistribution of shipments resulting from industry reclassification shows up for SIC 3577 Computer peripheral equipment Portions of this industry are part of Telephone and telegraph equipment and Magnetic and optical recording media Inaddition portions ofOfficeMachines(SIC 3579) reclassified under NAICS were clearly non IT-producersmdashLead pencil manufacturing and Watch and clock manufacturing The overall result of the differences between the SIC and the NAICSrsquo classifications was thatComputers and equipment and calculating and office machines (SICs 3571 3572 3575 3577pt 3578 and 3579pt) became an IT-producing industry for this analysis

Appendix Table 31 shows the reassignments of SICs and parts of SICsto the IT-producing sector Six of the 29 IT-producing industries listed in the table had some reassignment of shipments resulting in some slight shiftingamongindustryestimates ofGPO fromthe GPO estimates presented inprevious EDEreports All of the industry reassignments of shipments resulting fromreclassificationoccurred within IT-producing industries

Finally while the industries presented as IT-producing industries in the DE 2000 report do not reflect any official US government list of such industries the industries selected as IT-producing according to our best judgement met the criteria listed above

MEASURING INFORMATION TECHNOLOGY PRODUCING INDUSTRIES

The output of IT-producing industries was measured in terms of Gross Product Originating (GPO) often referred to as ldquovalue addedrdquo This GPO is defined as being equal to an industryrsquos total revenue (measured by total shipments or receipts plus inventory change) less the cost of purchased goods and services used

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 8: Digital Economy 2000 Appendices - commerce.gov

Page 4 Digital Economy 2000 ndash Appendices

inproduction1 GPO and value added can be thought of more directly as the sum of costs incurred by an industry (ie compensation of employees net interest and indirect business taxes) and profits

GPO by industry is the contribution of each private industry and government to Gross Domestic Income (GDI) Theoretically the nominal dollar value of GDI the income associated with the output of industries should equal total finaldemand of the economy or Gross Domestic Product (GDP) In practice however GDI and GDP do not match precisely

The analysis of IT-producing industries used here is consistent with the definitions and conventions used in the Gross Product by Industry series published by the Bureau of Economic Analysis (BEA) Although GPO and value added are considered to be the same value added data for manufacturing industries published by the Bureauof the Census are not the same as the BEA Gross Product by Industrytime series The difference between the two measures results from BEA subtracting industriesrsquo purchases of ldquoOther servicesrdquo(SIC 89) fromtotal revenue along withall other purchased goods and services Since the Census collects manufacturing data on an establishment basis and most purchases of other services are at the corporate level the Census does not subtract these purchases in its value added calculation2

The GPO estimates for the IT-producing industries developed for this report are derived from revenue receiptsand shipments whether or not all of the industryrsquos productionwas used as an IT good orservice For example not all semiconductors are used bythe computer industryor other industries selected as IT-producing Semiconductors are also used in automobiles home appliances and a variety of other consumer and industrial goods However to differentiate production into IT-producing and non IT-producing would be difficult if not impossible to do For this reason the GPO of the semiconductor industry is based on its total annual shipments and costs of production

By using GPO for the IT-producing industries double-counting of output is avoided when industry estimates are added togther If value of shipments sales or revenues of these industries were added together there would be double-counting For example the value of shipments of the computer industry includes their spending onsemiconductors The semiconductor industry includes its sales to the computer industry and all other industries in its shipments data Adding total shipments of the semiconductor industry to the shipments of the computer industry would double count the value of shipments of the semiconductor industry to the computer industry Other industries provide goods and services used in production in the computer industry as well Adding the shipments of these industries to the shipments of

1 See page 133 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94 Survey of Current Business August 1996 for a more detailed description of GPO and its relationship to Gross Domestic Product and Gross Domestic Income

2 See page XI of the 1992 Census of Manufactures MC92-S-1 Subject Series General Summary for a description of the difference between gross product originating and value added

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 9: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 5

the computer industry would similarly result in double counting due to mixing industry inputs and outputs Thus adding up only the GPO of these industries avoids double-counting

GPO of IT-Producing Industries 1990-97

The following is a descriptionof the data and the methods used to derive GPO for IT-producing industries at the 4-digit SIC industrylevelfor 1990 through 1997 (Appendix Table 32) Since published 4-digit SIC industry level data were not available for 1998-2000 the next section explains how industry growth estimates were used to determine GPO for those years

GPO for Hardware and Communications equipment IT-producing industries allinmanufacturing were derived beginning with Census data on value of shipments at the 4-digit SIC level of detail GPO was derived bydeductingthe cost ofmaterials and the value ofpurchased services used inproductionfrom the value of shipments and then adjusting for inventory change

Beginning with BEArsquos Fall 1999 comprehensive revision of the national accounts industry purchases of software and software services were considered asaninvestmentrather thanasanexpense ofproduction3

Thus industry spending onsoftware and software services became for the first time a part of GDP The estimates of GPO for the IT-producing industries in Appendix Tables 32 and 33 reflect this change

Ingeneral data used to estimate GPO for IT-producing industries in the manufacturing sector are from the Census 1990-91 and 1993-96 Annual Survey of Manufactures and from the more detailed 1992 and 1997 Economic Census of Manufactures The Economic Census reports contain more detailed data particularly on the cost ofmaterials and purchased services used in production so that data for these two years are used to adjust the shipments data for the AnnualSurvey years when data are less detailed Thus for 1990-91 and 1993-96 GPO was estimated fromthe published shipments data in the Annual Surveys and then adjusted for inventory change and costs of materials and purchased services estimated from the average relationship of inventorychange and materials costs to production in the Economic Census years

The more detailed data available in the Economic Census years include costs of materials beginning and end of year inventories and costs of selected purchased services Data on selected purchased services include software services (see above) repair of buildings repair of machinery communications legal services accounting and bookkeeping advertising and refuse removal Since this industryrsquos spending for services only represents a portion of its purchased services industry spending for all other services was estimated using the distributionofspending onservices fromBEArsquos 1992 Benchmark Input-Output (I-O) table The distribution and the portionof the industryrsquos output that was purchased services from the I-O

3 See Seskin ldquoImproved Estimates of the National Income and Product Accounts for 1959-98 Results of the Comprehensive Revisionrdquo Survey of Current Business December 1999

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 10: Digital Economy 2000 Appendices - commerce.gov

A p p e n d i x T a b l e 3 2

I n f o r m a t i o n T e c h n o l o g y P r o d u c i n g I n d u s t r i e s Gross Produc t Or ig ina t ing

I n d u s t r y

T o t a l G r o s s D o m e s t i c I n c o m e

Y e a r - t o - Y e a r G D I C h a n g e ( )

H a r d w a r e Computers and equipment ca lc machines

Computers and equ ipment wholesa le sa les

Computer and equipment retai l sales

Elect ron tubes

Printed circuit boards

Semiconductors

Passive e lect ronic components

Industr ia l inst ruments for measurement

Instruments for measur ing electr ic i ty

Laboratory analyt ical instruments

T o t a l H a r d w a r e

S o f t w a r e S e r v i c e s

Computer programming serv ices

P repackaged so f twa re

Prepackaged so f twa re who lesa le sa les

Prepackaged so f tware re ta i l sa les

Computer in tegrated system design

Computer process ing data preparat ion

Informat ion retr ieval services

Computer serv ices management

Computer renta l and leasing

Computer maintenance and repai r

Computer re la ted serv ices nec

T o t a l S o f t w a r e a n d S e r v i c e s

C o m m u n i c a t i o n s Household audio and v ideo equipment

Telephone equipment exc ext modems

Radio amp TV communicat ions equipment

Magnetic and opt ical and recording media

T o t a l C o m m u n i c a t i o n s H a r d w a r e

Telephone and te legraph communicat ions

Radio broadcast ing

Televis ion broadcast ing

Cable and o ther pay TV serv ices

T o t a l C o m m u n i c a t i o n s S e r v i c e s

T o t a l I T P r o d u c i n g I n d u s t r i e s

S h a r e o f t h e E c o n o m y ( )

1990

57727000

1991

59666000

34

1992 1993 1994 1995 ( M i l l i o n s o f $ e x c e p t a s n o t e d )

62752000 6 5786000 6 9958000 7 3740000

52 48 63 54

1996

77803000

55

1997

83039000

67

1998 1999 e s t i m a t e e s t i m a t e

88075000 9 3813000

61 65

2000 e s t i m a t e

98316024

48

270910

33 8359

1 8703

1 1694

4 4077

15 8120

11 5657

2 3318

3 3186

1 8716

23 1448

35 9990

1 8878

1 0385

3 1433

18 4667

12 7207

2 3861

3 4604

1 9879

24 1017 23 4950 26 3301 31 0360

39 7432 42 5730 43 5539 51 1138

1 9149 2 2933 2 7208 2 8605

1 0533 1 0193 1 1865 1 2056

3 5557 3 7108 4 3809 4 4062

18 3082 23 7026 31 6395 40 8362

13 4936 14 3509 16 0349 15 3102

2 5515 2 3438 2 4364 2 5262

3 4933 3 0969 3 5516 3 9807

1 8348 1 8583 1 9334 2 1338

32 9276

61 5599

2 7970

1 2558

5 0563

43 5530

13 3474

2 9433

4 9072

2 7704

36 1390

70 2707

3 1888

1 2586

5 0703

54 1315

11 3137

4 5979

7 7618

3 7460

39 2108 42 6221

75 0842 81 1059

3 4073 3 6867

1 3165 1 4020

5 5267 5 6040

57 0546 60 7632

12 0717 12 8805

4 8738 5 2149

8 3827 8 9527

3 9857 3 9820

46 3302

88 1622

4 0075

1 4932

5 6825

64 7128

13 7435

5 5800

9 5615

4 2328

1032739 1042352 1100503 1184437 1337681 1554094 1711178 1974782 2109138 2262141 2435061

158965

11 3229

1 8101

998

10 0526

10 9399

2 5976

1 4603

1 6938

4 5589

3 2065

17 4425

12 5529

1 9277

100 9

10 7095

11 5638

2 7048

1 6166

1 5359

4 5090

3 4610

18 6244 20 3990 23 1629 26 1195

14 5545 17 2634 19 7759 22 7683

2 1272 2 2788 2 3302 2 7330

102 3 122 5 145 3 152 6

11 8139 12 6198 13 2573 13 5988

12 5542 14 5617 17 9084 21 8436

2 8792 3 1327 3 3380 3 9100

1 9102 1 8729 1 9418 2 0900

1 5280 1 5902 1 7024 1 8801

4 9893 5 4005 6 0405 6 9492

4 4064 5 5452 7 2673 9 3052

31 3701

26 9265

3 2917

149 2

15 7369

25 1811

5 0585

2 1341

2 1254

7 8718

11 6443

37 2953

29 5117

3 6077

163 6

20 3142

26 5821

6 6374

2 4786

2 4630

8 7869

16 0234

47 7961 55 0133

34 4968 40 0162

4 2171 4 8919

191 2 221 8

24 6915 28 4199

28 0622 32 2995

8 9774 10 3330

2 9421 3 3863

2 9443 3 3889

10 0294 11 5438

21 2611 24 4715

62 7152

46 4188

5 6746

257 3

32 5976

37 0476

11 8520

3 8841

3 8871

13 2408

28 0688

636388 68 1246 75 4896 84 7866 96 8699 1113502 1314896 1538638 1856091 2139862 2456438

16319

8 3135

9 8061

1 4423

1 7844

8 0052

8 7630

1 6445

1 8716 2 0240 2 0344 1 9447

10 2509 10 7349 10 9497 12 1387

10 1342 9 4807 13 0202 14 3098

1 7134 1 8788 2 0144 2 3816

1 6176

15 0344

13 8394

1 9534

2 2171

21 0691

18 6464

1 9518

2 2880 2 3132

21 8065 22 5916

20 6416 22 2516

1 9733 1 9950

2 3386

23 4049

23 9873

2 0848

211938 20 1972 23 9701 24 1183 28 0186 30 7748 32 4447 43 8845 46 7095 49 1514 51 8156

1193387

4 9465

12 2224

10 5247

1239479

5 3181

11 6256

13 6619

1299599 1348697 1423848 1454910

4 9687 6 5654 7 0403 8 0470

11 6488 14 7554 16 2749 18 4416

14 9923 19 8225 19 3319 21 7780

1573146

8 6194

18 9472

23 0081

1589178

9 4173

20 5602

26 4869

1597124 1893997

10 0482 11 5539

22 7396 23 5204

29 7978 32 2659

1991085

12 8705

26 5512

35 2310

1470323 1545535 1615697 1760130 1850319 1937577 2078894 2153822 2222980 2567400 2737612

3351388 3471105 3710797 4033617 4436885 4912921 5429415 6106087 6655304 7460918 8147267

58 58 59 61 63 67 70 74 76 80 83

See industry SIC c lass i f icat ion in Appendix Table 31

Source ESA es t ima tes de r i ved f rom BEA and Census da ta fo r 1990-97

ESA es t imates fo r 1998-2000 f rom Commerce s In te rna t iona l T rade Admin is t ra t ion

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 11: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 7

table were adjusted to accommodate the selected purchased services published in the 1992 and 1997 Economic Censuses The ldquoadjustedrdquo ratio was applied to total annual industry shipments for the remaining years in the time period to estimate the cost of purchased services not including software

GPO for wholesale trade ofcomputer equipment (part ofSIC 5045) was added to the categorycalled ITshyproducing hardware industries since over half of wholesale trade of computers comes directly from computer manufacturersrsquo branch offices Although counted by the Census as a wholesale sale and not a manufacturerrsquos shipment the actual sale is primarily a direct manufacturerrsquos sale The nominal value of computer sales from branch offices of manufacturers has been twice that of computer sales directly from manufacturing facilities throughout the 1990s

Annual source data for 1990-91 and 1993-97 for wholesale trade of computers and equipment were available at the 3-digit SIC industry level in the Census Current Business Report called the Annual Benchmark Report for Wholesale Trade In this report gross margins (sales less costs of goods sold) by wholesale industries were reported under SIC 504 Wholesale sales of professional and commercial equipment and supplies

Data for wholesale trade ofcomputers and computer equipment in 1992 at the 4-digit SIC industrylevel are available from the Census 1992 Economic Census of Wholesale Trade and were used to derive the GPO forSIC 5045Wholesale sales ofcomputer equipment (and software) The 1997 Economic Census of Wholesale Trade was not available at the time of this assessment In the 1992 report data for SIC 5045 include sales and purchased operating expenses from merchant wholesalers manufacturerrsquos sales from branch offices and agents brokers and commissionmerchants This Census report also separates sales and purchased operating expenses for computers into both equipment and software

The ratios of manufacturerrsquos branch office sales to total wholesale sales of computer equipment (part of SIC 5045) and to the corresponding purchased operating expenses were used to distribute the gross margin data of the annual reports (SIC 504) This procedure was used to estimate the GPO of manufacturer sales ofcomputer equipment frombranchoffices for 1990-91 and 1993-1997 at the 4-digit SIC level

GPO for the retail trade ofcomputer equipment and software (SIC 5734) was derived in much the same way as the wholesale estimates described above The Census Annual Benchmark Report for Retail Trade contains total sales and gross margins for the 3-digit SIC sector (SIC 573) Data on purchased operating expenses as well as the distributionbetweenequipment and software from the 1992 Census of Retail Trade were thenused to disaggregate the 3-digit SIC sector to the 4-digit SIC 5734 for 1990-91 and 1993-97 Again the 1997 Census of Retail Trade was not available

GPO for the computer software and computer services IT-producing industries for the 1990-91 and 1993-98 periods was derived using the 1992 Census of Service Industries and the Current Business

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 12: Digital Economy 2000 Appendices - commerce.gov

Page 8 Digital Economy 2000 ndash Appendices

Report entitled the Service Annual Survey Similarly to the derivation of GPO for the wholesale and retail trade ofcomputer equipment and software 4-digit SIC data on revenue and operating expenses from the 1992 Census of Service Industries were used as a pattern to derive annual estimates from 3-digit SIC ldquocontrolsrdquo for 1990-91 and 1993-98

The 1992 Census of Service Industries includes a Subject Series report called Sources of Receipts and Revenue that was used to compute the cost of goods sold For most of the software and computer services IT-producing industries the cost of goods sold was less than 2 percent of total receipts However three of the computer services industries derived a significant portion of their revenue from the sale of goods Computer rentals and leasing (SIC 7377) where the cost of goods sold represented 86 percent of total receipts Computer maintenance and repair (SIC 7378) 76 percent and Computer services not elsewhere classified (SIC 7379) 24 percent The costs of these goods (computers and equipment) were deducted from the total receipts or these service industries to arrive at a gross margin estimate The 1992 Census report also provides a Subject Series report called Capital Expenditures Depreciable Assets and Operating Expenses That report lists operating expenses for 4-digit SIC Software and service IT-producing industries

GPO for the Software and service IT industries in 1992 is computed by subtracting cost of goods sold and purchased operating expenses from total receipts for the 4-digit sectors This distribution is then applied to 4-digit receipts data from the annual reports for these industries to obtain GPO estimates for 1990-91 and 1993-98

GPO for Software wholesale sales (part of SIC 5045) and Retail sales (part of5734) were derived using data fromthe Census Annual Benchmark Reports for Wholesale Trade and for Retail Trade for 1990shy91 and 1993-96 and the Census 1992 Economic Census of Wholesale Trade and Census of Retail Trade GPO estimates ofSoftware and computer services industries were adjusted for the new treatment of purchased software and software services in much the same way as the GPO estimates were adjusted for the IT-producing industries in the manufacturing sector

GPO for the Communications services IT-producing industries was derived fromthe 1992 Census of Transportation Communications and Utilities and the 1990-91 and the 1993-98 Annual Survey of Communications Services4 Revenue and cost of purchased services data from these reports and the value and distributionof the costs ofpurchased services fromBEArsquos1992 Benchmark Input-Output table were used to derive estimates of GPO adjusted for consistency with the new treatment for software purchases

4 BEArsquos GPO data for communications were used in last yearrsquos EDEreport However they not used here because the BEA released their rebenchmarked GPO series after the publication of the DE 2000 report Rebenchmarked GPO data for all industries are now available on the BEA web site and in the June issue of the Survey of Current Business (Lum Moyer and Yuskavage pp 24-54)

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 13: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 9

GPO of IT-Producing Industries 1998-2000

Estimates were made of GPO for IT-producing industries for 1998-2000 Industry specialists from the Department ofCommercersquos InternationalTrade Administration(ITA)providedestimates ofannualgrowth in industry shipments from 1998 through 2000 These estimates were ultimately published in the ldquoUS Industry and Trade Outlook 2000rdquo (Outlook)mdashjointly published by the ITA and DRIMcGraw-Hill

Annual GPO to shipments ratios for 1990 through 1997 (or 1998 when data were available) were calculated ITA estimates of shipments ( or sales revenues and receipts) were converted to GPO based on a lagged 3-year moving average of the GPO to shipments ratios Thus for example the shipments estimates for 1998 were converted to GPO based on the average ratio of GPO to shipments for 1995 through 1997 In 1999 the ratios for 1996 1997 and the estimated ratio for 1998 were averaged to calculate GPO for that year Similarly the GPO for 2000 was projected by using the average of the ratio for 1997 and the estimated ratios for 1998 and 1999

Real Dollar GPO of IT-Producing Industries

Chained-weighted 1996 dollar GPO for IT-producing industries are computed by deflating nominalGPO with price indexes obtained from BEArsquos Gross Product by Industry program5 Real dollar GPO for IT-producing industries is not estimated beyond 1998 since price indexes for these industries were not available A composite Fisher-type price index for Computers and computer equipment and Calculating and office machines and a deflator for Semiconductors were developed from BEArsquos quality-adjusted ldquohedonicrdquodeflators These quality-adjusted deflators relate prices of these products to their performance characteristics and their cost of production

The 1990 through 1998 composite price indexes used in this analysis of IT-producing industries for Computers and computer parts and Calculating and Office Machines are as follows

Computers and computer parts Calculating and office machines SIC 3571 3572 3575 3577pt 3578 and 3579pt

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 3077 2791 2364 1944 1696 1385 1000 0710 0469

5 The Industry and Wealth Data portion of the BEA web site (httpwwwbeadocgov) provides the GPO by Industry

series The rebenchmarked GPO series was not available until after the publication of DE 2000

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 14: Digital Economy 2000 Appendices - commerce.gov

Appendix Table 33

Information Technology Producing Industries Real Gross Product Originating

Industry

Total Gross Domestic Income

Year-to-Year GDI Change ()

Hardware

Computers and equipment calculating machines

Computers and equipment wholesale sales

Computer and equipment retail sales

Electron tubes

Printed circuit boards

Semiconductors

Passive electronic components

Industrial instruments for measurement

Instruments for measuring electricity

Laboratory analytical instruments

Software and Services

Total Software and Services

Communications Hardware

Household audio and video equipment

Telephone equipment exc ext modems

Radio amp TV communications equipment

Magnetic and optical and recording media

Communications Services

Telephone and telegraph communications

Radio broadcasting

Television broadcasting

Cable and other pay TV services

Total IT Producing Industries

1990 1991 1992 1993 1994 1995

(Millions of 1996$ except as noted)

1996 1997 1998

6648000 6647300

00

6843600

30

6986400 7276900 7516700

21 42 33

7780300

35

8147900

47

8541700

48

88044

109964

20531

11709

38129

37946

104952

26200

37120

20212

756879

20657

65461

103768

22362

1244407

65407

161614

139166

2726374

82927

128982

19696

10272

27500

49977

115643

26050

37573

21193

792130

21396

63940

91472

22435

1291124

70102

153246

180089

2871577

101953

168118

19360

10672

31662

59675

121893

27260

37045

19212

825102

19975

84999

103094

23060

1338413

63401

148639

191301

3120351

120859 155248 224087

218997 256804 369053

22910 26889 28270

10433 11961 12044

34201 41564 42862

88016 138285 271337

129755 146572 144164

24491 25143 25937

32327 36502 39807

19237 19830 21575

929506 1021996 1159103

20260 18461 15111

90897 96388 86090

95092 129425 143385

23662 21567 23349

1379036 1423848 1430590

77857 82041 89210

174980 189651 204444

235070 225274 241431

3489833 3893913 4516830

329276

615599

27970

12558

50563

435530

133474

29433

49072

27704

1315378

16176

150344

138394

19534

1573146

86194

189472

230081

5429415

508999

989728

32368

12598

52706

714136

117119

44083

77002

37052

1489576

20321

217208

184801

19211

1657120

84385

184233

237341

6573568

836050

1600942

34073

13447

60733

1201150

129109

45936

83327

39385

1733938

20000

232479

206210

19993

1597124

83257

188413

246896

7786479

See Table Appendix Table 31 for SIC Industry classification

Real chain weighted 1996 dollars are not directly additive

Source ESA estimates derived from BEA and Census data

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 15: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 11

This composite price index for computers was developed byusing the price indexes associated with each of the sectors along withtheir nominalshipments to develop real (1996 chain-weighted) dollar shipments by individual sector Total nominal dollar shipments of these sectors were then divided by an aggregate real chain-weighted dollar value of shipments to produce the implicit deflator shown The aggregation of the real chain-weighted dollar values of shipments was estimated by using a Fisher-Ideal quantity index formula6 This price index was also applied to wholesale sales of computers (SIC 5045pt) since these were mostly manufacturesrsquo sales

The hedonic price index for semiconductors for 1990 through 1998 is as follows

Semiconductors SIC 3674

Year 1990 1991 1992 1993 1994 1995 1996 1997 1998

Deflator 4167 3695 3056 2693 2286 1505 1000 0758 0475

Total real chain-weighted dollar estimates for all IT-producing industries were also estimated using the Fisher-Ideal quantity index formula (See footnote 5)

Price Effects of IT-Producing Industries

An implicit deflator for all IT-producing industries was calculated by dividing its aggregate nominal dollar value by its aggregate real chain-weighted 1996 dollar estimate A Fisher-of-Fishers calculation was used to aggregate the real dollar estimate of the IT-producing sector The nominaldollar value for the rest of the economy was calculated as Gross Domestic Income (GDI) less the GPO of IT-producing industries A residual (GDI less the IT sector) implicit price deflator was then developed for the non IT-producing portion of GDI using a Fisher chain-type calculation7

6 See page 142 of Yuskavage ldquoImproved Estimates of Gross Product by Industry 1959-94rdquo Survey of Current Business August 1996 for a description of the Fisher-Ideal quantity index formula

7 In last yearrsquos EDEreport the price changes for individualnon IT- producing industries and government were calculated

using BEArsquos Gross Product by Industry series An aggregate non-IT producing price index was then developed and compared with the price index of the IT-producing sector This method however could not be done this year since the re-benchmarked GPO data was not available The alternative if less accurate method (described above) was developed incorporating a residual deflator for the rest of the economy The form of the residual deflator formula is shown on page 142 of the August 1996 BEA Survey of Current Business article cited previously

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 16: Digital Economy 2000 Appendices - commerce.gov

Page 12 Digital Economy 2000 ndash Appendices

The change in the annual deflator for GDP (the GDP deflator is used to deflate GDI) was then compared to the change in the annual deflator for the rest of the economy (GDI less the IT-producing sector) The difference between the growth rates was attributed to the IT-producing sector8

IT-Producing Industries Contribution to Real Economic Growth

Growth in real production of IT-producing industries is measured in chain-weighted dollars that are not additive so that their contributionto real economic growth cannot be directly calculated fromthese chainshydollar measures The appropriate method requires calculating the contribution of IT-producing industries to the percent change inGDP A new method distinct from the method used in the last EDE report was used for these computations the new formula produces estimates that are very close to those produced by the previous formula9

Industry Investments in IT Equipment and Software

Industryinvestments incurrent and constant (chained 1996 dollars) dollars in IT equipment and software are from BEArsquos published series on Private Fixed Investment by TypemdashTables 54 and 55 respectively in the Survey of Current Business Four types of equipment and software are identified in these tables (1) Informationprocessingequipment and software (2) Industrialequipment(3) Transportationequipment and (4) Other For presentation purposes investments of Industrial equipment and Other equipment were added together (using the Fisher-Ideal formula) and compared with the other two categories

The contribution of IT equipment (Information processing and related equipment) to the growthincapital expenditures (investments) was calculated based on the same formula used to calculate the contribution to real economic growth of the IT-producing industries Information equipment and software is further brokendown into Computers and peripheralequipmentSoftwareand Other inBEArsquos tables 54 and 55

8 This calculation differs from the BEA measure of lsquocontribution to inflationrsquo which finds that an industry with zero inflation makes a zero contribution to inflation This calculation does not take zero inflation as its point of reference but instead takes inflation of the non-IT portion of the economy as its reference point If inflation in the IT sector had been the same as inflation in the non-IT sector overall inflation would have been the same as in the non-IT sector Because

IT inflation was substantially below inflation in the non-IT sector overall inflation was lower than inflation in the non-IT sector

9 See Moulton and Seskin ldquoA Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts Statistical Changesrdquo Survey of Current Business October 1999 The new formula to calculate component contributions to economic growth is on page 16

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 17: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 13

RESEARCH amp DEVELOPMENT IN IT-PRODUCING INDUSTRIES

RampD data are from the National Science Foundation Appendix Table 34 provides company-funded RampD spending for IT-producing industries

Appendix Table 34

Information Technology Producing Industries Research and Development Expenditures Company-funded

Industry Group SIC 1992 1993 1994 1995

(millions$)

1996 1997 1998

All Industries

Manufacturing

94388

71025

94591

69901

97131 108652

73375 81236

121015

91845

133611

101202

145016

102211

IT Producing 25179 25721 28523 32523 39650 44933 45739

Office computing and accounting

Communications equipment

Electronic components

Telephone communications Computer data processing eng services

357

366

367

481 737871

10614

3381

3320

4131 3733

4917

3954

5105

4320 7425

4078 4669

4939 3845

5870 9628

4177 4756 6459 9595

8132

4359

12497

3970 10026

12787

7377

10786

1884 11319

8890

10173

9776

1768 14298

IT Share of Total RampD (percent) 267 272 294 289 328 336 315

Source National Science Foundation

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 18: Digital Economy 2000 Appendices - commerce.gov

Page 14 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 19: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 15

APPENDIX TO CHAPTER V

THE INFORMATION TECHNOLOGY WORKFORCE

This appendix contains supplementaldata data sources and methodologies for estimating the employment effects of information technologies as described in Chapter 5 of Digital Economy 2000

IT-PRODUCING INDUSTRY EMPLOYMENT

Most of the employment estimates used in this analysis are fromthe Current Employment Statistics (CES) survey conducted monthly ona sample ofnonfarmestablishments by the BureauofLabor Statistics (BLS) inconjunctionwithstate employment securityagencies (Appendix Table 51) Private nonfarm employment includes all full and part-time employees except those in the agricultural and government sectors These data are published bi-annually inodd years in the November Monthly Labor Review (along with10-year projections) and monthly in Employment amp Earnings These data can also be downloaded directly from the BLS website (httpwwwblsgov)

For some IT-producing industries employment data were not available at the 4-digit SIC level but instead at the 2- or 3-digit SIC level In four cases SIC 357 - Computer and office equipment SIC 367 shyElectronic components and accessories SIC 737 - Computer and data processing services and SIC 48 shyCommunications all of the 4-digit sub-industries were identified as IT-producing industries Therefore industries for which data were missing could be computed as a residualfromthe 2- or 3-digit aggregates For example all ofSIC 48 (Communications services) are IT-producing industries but CES data are only available for 481 4832 4833 and 4841 After subtracting employment levels in SICs481 4832 4833 and 4841 from SIC 48 the residual was reported as employment in a combined industry including SICs 482 and 489

BLS also collects employment data through the Covered Employment and Wages (ES202) program a Federal-State cooperative program that counts all employees covered by unemployment insurance programs These data are published annually in Employment and Wages Annual Averages and are available on the BLS website (httpwwwblsgovcewhomehtm) When CES employment figures were not available at the necessary level of detail (4-digit SIC level) and a residual could not be calculated employment levels were estimated byapplying the 4-digit SIC levelemployment distributionof the ES202 numbers to the aggregate (3-digit SIC level) CES numbers When CES employment numbers were not available at the 3-digit SIC level ES202 employment numbers were used

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 20: Digital Economy 2000 Appendices - commerce.gov

Appendix Table 51

Information Technology Producing Industries Employment Trends 1992 to 1998

SIC

Code

1992 1993 1994 1995 1996

(Units 000s)

1997 1998 Change

1992-98

AAG-

1992-98 Total private employment 89956 91872 95036 97885 100189 103133 106007 16051 28 Year to year percent change 21 34 30 24 29 28

Hardware Electronic computers Computers and equipment wholesalers

Computers and equipment retailers Computer storage devices amp peripheral equipment

Computer terminals office and accounting machines Electron tubes Semiconductors Printed circuit boards electronic capacitors Electronic components nec Industrial instruments for measurement Instruments for measuring electricity Analytical instruments

3571 5045pt

5734pt 35727

357589 3671 3674

36725-8 3679 3823 3825 3826

2419 2770

754 913

578 269

2174 1566 1265

610 761 281

2161 2704

782 932

541 248

2138 1616 1275

605 728 281

2011 2712

845 979

552 245

2205 1682 1310

620 712 269

1900 2851

937 1045

577 240

2352 1870 1346

642 712 281

1893 3047

1024 1142

583 229

2596 1957 1384

662 743 297

1972 3348

1157 1187

600 219

2772 2050 1462

665 754 313

1999 3672

1263 1185

607 204

2840 2079 1477

670 769 320

-420 902

508 272

29 -65 666 513 212 60 08 39

-31 48

90 44

08 -45 46 48 26 16 02 22

Total Hardware 14360 14011 14143 14753 15556 16499 17084 272 29 Software and Computer Services

Computer programming services Prepackaged software wholesalers Prepackaged software retailers Prepackaged software Computer integrated systems design

Computer processing and data preparation Information retrieval services Computer maintenance and repair Computer services management rental and leasing

7371 5045pt 5734pt

7372 7373

7374 7375 7378

737679

1686 146

38 1308 1025

2044 452 428

1412

1883 142

40 1448 1095

2073 462 418

1549

2099 143

43 1574 1164

2095 480 445

1729

2453 150

47 1808 1299

2231 569 486

2053

2762 160

52 2010 1435

2300 702 533

2535

3218 176

61 2245 1613

2429 831 579

3179

3698 193

66 2522 1784

2540 983 600

3866

2012 47 28

1214 759

496 531 172

2454

140 48 97

116 97

37 138

58 183

Total Software and Computer Services 8539 9110 9771 11096 12489 14331 16253 771 113 Communications Equipment

Household audio and video equipment Telephone and telegraph equipment Radio and TV communications equipment nec Magnetic and optical recording media 1

3651 3661

36639 3695

598 1096 1289

183

595 1100 1290

182

599 1095 1383

188

557 1117 1532

167

548 1145 1558

168

538 1200 1573

179

550 1259 1557

159

-48 163 268 -24

-14 23 32

-23 Total Communications Equipment 3166 3167 3265 3373 3419 3490 3525 36 18

Communications Services Telephone communications Telephone and telegraph communications Radio broadcasting Television broadcasting Cable and other pay TV services

481 482489

4832 4833 4841

8852 256

1129 1146 1306

8790 244

1133 1162 1362

8934 247

1135 1187 1445

8997 267

1130 1227 1555

9114 284

1133 1275 1700

9709 312

1139 1291 1742

10068 347

1156 1312 1811

1216 91 27

166 505

22 52 04 23 56

Total Communications Services 12689 12691 12948 13176 13506 14193 14694 201 25

Total IT Producing Industries 38754 38979 40128 42399 44970 48513 51556 1280 49

Year to year percent change 06 29 57 61 79 63

Share of total private employment 43 42 42 43 45 47 49

Source Bureau of Labor Statistics AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 21: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 17

Estimates ofemployment bywholesale and retail sellers ofcomputer equipment and software (SICs 5045 and 5734) were divided among the computer hardware and software and computer services categories using the same distribution as value added -- 95 percent to computer hardware and 5 percent to software and computer services

IT-PRODUCING INDUSTRY WAGES

Industry level wage data are collected through the BLS ES202 program and include gross wages and salaries bonuses stock options tips and other gratuities and in some cases the value of meals and lodging10 These estimates along with industry employment were used to compute annual wages per worker (Appendix Table 52) Since employment estimates are from the CES survey and wages are from the ES202 survey theydo not exactly match employment per worker estimates using ES202 employment numbers (as published by the American Electronics Association and Business Software Alliance)

Wage estimates presented in this report are for 1992 to 1998 Estimates for 1991 and earlier are not comparable to recent estimatesbecauseofchangesinreporting requirements (See Covered Employment and Wages Annual 1997) Note that these simple averages are for purposes of comparing relative wages across industries and should not be interpreted as official BLS estimates of mean or median earnings Estimates of wages per worker include all occupations in each industry and should not be confused with earnings for specific occupations which are discussed below

IT OCCUPATIONAL EMPLOYMENT

Occupations considered to be essential to IT and to electronic commerce were selected based on consultations with BLS and are the same as those used for the original EDE report Our definition of IT occupations is broader than the ldquocore IT occupations ie computer scientists engineers programmers and systems analysts used by the Technology Administration National Science Foundation Information Technology Association of America and others This is because the definition of IT occupations used in this analysis covers occupations not only involved in conducting electronic commerce but in maintaining the infrastructure that enables it See box below

10 Bureau of Labor Statistics BLS Handbook of Methods April 1997 (httpwwwblsgovpdf homch5pdf)

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 22: Digital Economy 2000 Appendices - commerce.gov

Appendix Table 52

Information Technology Producing Industries Annual Wages Per Worker 1992 to 1998

Average All Private Industries IT-Producing Industries

SIC 1992 1993 1994 1995 1996 1997 1998 Change

1992-98

AAG-

1992-98

$25400 $41300

$25700 $42500

$26200 $43900

$27200 $46400

$28300 $49200

$29800 $52900

$31400 $58000

$6100 $16700

36 58

Hardware

Electronic computers 3571 $52400 $54700 $55600 $59600 $62400 $69800 $83900 $31500 82

Computer equipment wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Computer equipment retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer storage devices amp peripheral equipment 35727 $41200 $42700 $42900 $46500 $51000 $58400 $57400 $16300 57

Computer terminals office and accounting machines 357589 $43300 $44800 $44300 $46600 $49500 $52900 $56900 $13600 47

Electron tubes 3671 $38400 $37600 $39800 $41900 $41000 $44200 $46400 $8100 32

Semiconductors 3674 $44500 $47400 $49500 $53800 $54400 $59700 $64400 $19900 64

Printed circuit boards electronic capacitors 36725-8 $25700 $26500 $27500 $28300 $29400 $31600 $32900 $7200 42

Electronic components nec 3679 $29700 $30700 $31900 $32900 $33900 $35600 $37500 $7800 40

Industrial instruments for measurement 3823 $35100 $35800 $37000 $38400 $40500 $43200 $46400 $11300 48

Instruments for measuring electricity 3825 $42500 $44000 $48200 $51600 $54500 $59300 $62900 $20400 68

Laboratory analytical instruments 3826 $38700 $39200 $42600 $44200 $50100 $49900 $54300 $15500 58

Hardware $42400 $43300 $44200 $46300 $48300 $52800 $58000 $15600 54

Software and Computer Services Computer programming services 7371 $46200 $47600 $50100 $52700 $56900 $60000 $64700 $18400 58

Prepackaged software 7372 $57000 $54500 $57000 $63700 $70100 $79200 $94100 $37100 87

Prepackaged software wholesalers 5045pt $52500 $52900 $52900 $54300 $56700 $62200 $69700 $17200 48

Prepackaged software retailers 5734pt $32200 $30500 $32100 $33800 $35000 $37300 $40400 $8200 39

Computer integrated systems design 7373 $48600 $49700 $52700 $54700 $59400 $62000 $65400 $16800 51

Computer processing and data preparation 7374 $34400 $36100 $36600 $39700 $43300 $44700 $45800 $11400 49

Information retrieval services 7375 $36700 $38900 $38600 $42200 $45300 $48500 $63700 $27000 96

Computer maintenance and repair 7378 $36600 $37500 $37200 $37800 $39500 $40100 $41200 $4600 20

Computer services management rental and leasing 737679 $46000 $46800 $48900 $51800 $54600 $58700 $64100 $18100 57

Software and Computer Services $44300 $45300 $47200 $50700 $54900 $58800 $65300 $20900 67

Communications Equipment Household audio and video equipment 3651 $32700 $33900 $36900 $32400 $35100 $39300 $40700 $8100 37

Telephone and telegraph equipment 3661 $42400 $45400 $46800 $49900 $54600 $57400 $62400 $20100 67

Radio and TV communications equipment nec 36639 $39100 $40300 $40100 $42700 $44400 $48000 $52100 $13000 49

Magnetic and optical imaging devices 3695 $37500 $38800 $39300 $39200 $45700 $43000 $45800 $8400 34

Communications Equipment $38900 $40800 $41700 $43200 $46400 $49700 $53700 $14800 55 Communications Services

Telephone communications 481 $41400 $43300 $45100 $46800 $48700 $50900 $53700 $12400 44

Telephone and telegraph communications 482489 $41700 $44100 $47200 $48500 $52900 $54600 $56200 $14500 51

Radio broadcasting 4832 $23500 $24300 $26000 $27200 $29300 $31300 $34200 $10700 65

Television broadcasting 4833 $41400 $42200 $43700 $47200 $51100 $51000 $54600 $13200 47

Cable and other pay TV services 4841 $29600 $30500 $31400 $34600 $35500 $37900 $42200 $12600 61 Communications Services $38600 $40100 $41800 $43700 $45700 $47800 $50900 $12300 47

Source ESA calculations based on BLS data AAG- average annual rate of growth

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 23: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 19

IT-Related Occupations

Engineering science and computer Electrical and electronics engineers

systems managers Computer engineers

Database administrators Computer support specialists

Systems analysts All other computer scientists

Computer programmers Electrical and electronics technicians

Broadcast technicians Duplicating mail and other office machine operators

Computer equipment operators Billing posting and calculating machine operators

Data processing equipment repairers Data entry keyers

Communications equipment operators Electronics repairers commercial and industrial equip

Electrical powerline installers and repairers Electrical and electronic equipment assemblers precision

Telephone and Cable TV installers and repairers Electromechanical equipment assemblers precision

Central office and PBX installers and repairers Electronic semiconductor processors

The sourceforemployment byoccupationand industryis the BLS National Industry-Occupation Matrix 1992 1994 1996 and 1998 compiled by the Office of Employment Projections (OEP) Employment by occupation is published biannually in the November (odd year) issue of the Monthly Labor Review Employment by occupation and industry are available on the BLS website (httpwwwblsgovemphomehtm)

Employees in IT occupations were counted across all industries including Government The net employment estimate for the IT workforce of 78 million was derived by combining employment of IT industries with employment of workers withIT occupations and subtracting workers with IT occupations in IT industries

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 24: Digital Economy 2000 Appendices - commerce.gov

Page 20 Digital Economy 2000 ndash Appendices

EDUCATION AND TRAINING REQUIREMENTS BY OCCUPATION

The Bureau of Labor Statistics classifies occupations into 1 of 11 categories that describe the education and training needed by most workers to become fully qualified Note that these education and training categories were not intended to be measured as skills The elevencategories include occupations that require training ranging from short-term on-the-job training to a first professional degree The box below shows the 11 BLS categories and how they correspond to the three levels of training intensity presented in Appendix Table 53 Because ofchanges in the OES survey methdology 1998 employment estimates for some computer occupations are not comparable to those for 1996 and earlier

Concordance of BLS and ESA Education and Training Requirement Levels

BLS Categories ESA

Intensity Levels

First professional degree High

Doctoral degree High

Masterrsquos degree High

Work experience plus a bachelorrsquos or higher degree High

Bachelorrsquos degree High

Associatersquos degree High

Post-secondary vocational training Moderate

Work experience in a related occupation Moderate

Long-term on-the-job training Moderate

Moderate-term on-the-job training Low

Short-term on-the-job training Low

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 25: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 21

Appendix Table 53

Information Technology Occupations Employment and EducationTraining Requirements 1992 to 1998

(000s)

1992 1994 1996 1998 AAG-

1992-98

AAG-

1994-98

All Occupations 121279 127143 132444 140514 25 25

All IT Occupations 4336 4498 4740 5308 34 42

Education and Training Requirements -- HIGH 2251 2364 2508 3196 60 78

Computer scientists engineers and systems analysts 666 827 933 1530 149 166

Computer programmers 555 537 568 648 26 48

Engineering natural science and computer and information systems managers 337 337 343 326 -05 -08

Electrical and electronics engineers 370 349 367 357 -06 06

Electrical and electronic technicians and technologists 323 314 297 335 06 16

Education and Training Requirements -- MODERATE 1207 1208 1315 1260 07 11

Broadcast and sound technicians 35 42 46 37 08 -34

Data entry keyers 448 414 436 435 -05 12

Central office and PBX installers and repairers 70 84 81 44 -73 -147

Data processing equipment repairers 83 75 80 79 -07 14

Electronic semiconductor processors 32 33 58 63 121 177

Electronics repairers commercial and industrial equipment 68 66 60 72 09 20

Telephone and cable TV line installers and repairers 165 191 201 180 15 -14

Electrical powerline installers and repairers 108 112 108 99 -15 -31

Electromechanical equipment assemblers precision 48 47 51 50 05 13

Electrical and electronic equipment assemblers precision 150 144 194 201 50 87

Education and Training Requirements -- LOW 878 926 917 852 -05 -21

Communications equipment operators 327 319 328 297 -16 -17

Computer operators 296 289 291 251 -27 -35

Duplicating mail and other office machine operators 162 222 196 197 33 -29

Billing and posting clerks and machine operators 93 96 102 107 23 26

High Associate degree bachelors degree or work experience plus a bachelors degree or higher

Moderate long-term on-the-job training work experience in a related occupation or post secondary vocational training Low short to moderate-term on-the-job training

AAG- average annual rate of growth

The grouping of education and training categories into high moderate and low requirement levels reflects the authors

interpretation of training intensity BLS classifies occupations into 11 categories that describe education and training needed by most workers to become fully qualified A description of these education and training categories can be

found in the November 1999 Monthly Labor Review p 76

Source Bureau of Labor Statistics

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 26: Digital Economy 2000 Appendices - commerce.gov

Page 22 Digital Economy 2000 ndash Appendices

IT OCCUPATIONAL WAGES

Wages are collected as part of the Occupational Employment Statistics (OES) survey The OES survey is conducted in a three year cycle during which one-third of the sample is surveyed each year Because ofchanges inmethodology 1998 wage and employment estimates for some computer occupations are not comparable to those for 1996 and earlier The 1998 mean wage estimates for each occupation are shown in Appendix Table 54 and are available at the OES website (httpwwwblsgovoeshomehtm)

Median weekly earnings for selected IT occupations are published in the January Employment amp Earnings These estimates are from a household survey and are not directly comparable to the OES estimates which are from an establishment survey

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 27: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 23

Appendix Table 54 Information Technology Occupations Wages 1998

Occupation Description of Duties

Mean Annual

Wages

Engineering science and computer systems managers

Plan coordinate and direct research development design production and computer-related activities

$71900

Electrical and electronic engineers

Design develop test and supervise the manufacture of electrical and electronic equipment including computer hardware and communications and video equipment

$59700

Computer engineers Design hardware software networks and processes to solve technical problems

$59900

Systems analysts Solve computer problems and enable computer technology to meet the specific needs of an organization $54100

Computer programmers Develop and write computer programs to store locate and retrieve specific documents data and information

$53400

Database administrators Use database management systems to coordinate changes to testing or implementing computer data bases May coordinate measures for system security

$50500

Computer support specialists Provide technical assistance and training to computer system users and investigate and resolve computer software and hardware problems $40600

Electrical and electronic technicians

Help design develop test and manufacture electrical and electronic equipment including computers

$38100

Computer operators Oversee the operation of computer hardware systems and must anticipate problems take preventive action and solve problems that occur

$26900

Broadcast technicians Repair set up and operate electronic equipment used to record and transmit radio and television programs

$31800

Communications equipment operators (telephone and switchboard operators etc)

Relay incoming outgoing and interoffice calls supply information to callers record messages and may perform routine clerical work

$19100 to $28400

Duplicating mail and other machine operators

Operate a variety machines that produce copies and machines that print names addresses etc on envelopes or forms

$19600

Billing posting and calculating machine operators

Operate machines that automatically perform mathematical processes to calculate and record billing accounting statistical and other numerical data

$21300

Data entry keyers composing Operate photocomposing or comparable data entry composing machines $21300

Central office and PBX installers and repairers

Install test analyze and repair telephone or telegraph circuits and equipment $42900

Data processing equipment repairers

Repair maintain and install electronic computers (mainframes minis and micros) and peripheral equipment

$31500

Electronics repairers commercial and industrial equipment

Install and repair industrial controls including communications and medical diagnostic equipment

$35800

Electrical and electronic equipment assemblers precision

Assemble electrical or electronic equipment such as computers numerical control machine tools and telemetering systems or appliances

$23400

Electromechanical equipment assemblers precision

Assemble test and prepare electromechanical equipment such dynamometers magnetic drums and tape drives according to specifications

$24200

Telephone and cable television line installers and repairers

String and repair telephone and television cable and other equipment for transmitting messages or TV programming

$34500

Electrical powerline installers and repairers

Install and repair cables or wires used in electrical power or distribution systems

$42600

Electronic semiconductor processors

Process materials used in manufacture of electronic semiconductors eg load semiconductor materials into special purpose furnaces or chemical baths

$26070

Source Bureau of Labor Statistics

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 28: Digital Economy 2000 Appendices - commerce.gov

Page 24 Digital Economy 2000 ndash Appendices

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 29: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 25

Appendix to Chapter VI

TRADE IN INFORMATION TECHNOLOGY GOODS AND SERVICES

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 30: Digital Economy 2000 Appendices - commerce.gov

Appendix Table 61

US Trade in IT Goods -- Exports

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

Total US Exports 576 598 637 698 836 1008 1075 1247 1206 1306 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

76 27

127 05 05

76 29

134 05 05

79 31

139 06 06

76 31

145 04 06

87 34

169 04 07

92 38

213 05 07

94 33

249 06 08

101 35

279 07 08

84 34

264 07 08

83 34

268 07 07

Total Computer and Office Equipment 240 250 261 263 301 355 390 429 397 398 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

21 24 28

23 25 28

25 33 31

27 40 41

31 48 53

33 58 68

35 66 64

41 73 86

45 79 82

38 91 82

Total Audio Video and Comm Equipment 73 76 89 108 132 159 165 201 206 211 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

06 18

107 05 02 02 10 23

08 14

109 06 02 02 10 26

08 11

114 06 02 02 10 28

09 10

137 07 03 02 12 31

12 14

176 08 03 02 16 42

15 17

227 11 04 03 17 54

17 17

240 13 04 03 19 50

23 20

290 16 05 04 23 61

25 22

290 14 05 04 21 53

24 24

366 17 06 05 23 56

Total Electronic Components and Accessories 174 175 181 210 273 347 364 442 435 521 Scientific Instruments

Process and control instruments Instruments to measure electricity Analytical instruments

20 26 13

20 27 17

21 29 19

25 30 20

29 32 21

31 39 24

31 44 26

37 52 28

37 51 28

40 57 30

Total Scientific Instruments 60 65 69 75 83 95 101 117 116 127 Magnetic Recording Media 17 18 17 17 17 20 27 26 20 17 Prepackaged Software 12 15 20 25 31 32 28 33 32 33

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 31: Digital Economy 2000 Appendices - commerce.gov

Appendix Table 61 (contd)

US Trade in IT Goods -- Imports 1990 1991 1992 1993 1994 1995

(Units $ Billions) 1996 1997 1998 1999

Total US Imports 690 744 851 990 1220 1512 1541 1671 1715 1964 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

26 60 63 10 09

40 63 72 09 08

46 85 87 10 09

55 93

108 12 10

52 110 184 12 12

49 142 214

12 15

64 164 246 13 14

73 195 286 14 13

72 181 292 15 14

101 169 339 14 13

Total Computer and Office Equipment 167 192 237 277 371 432 500 581 574 636 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

109 41 44

113 45 43

128 52 41

134 56 47

166 59 58

180 59 66

169 63 68

185 72 61

212 78 67

238 97

105 Total Audio Video and Comm Equipment 194 202 221 237 284 305 300 317 357 440

Electronic Components and Accessories Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

08 19

121 05 04 05 12

111

08 19

130 05 04 05 11

117

09 12

154 06 04 06 12

134

10 13

196 07 05 07 14

162

12 15

261 08 05 08 17

166

14 19

392 11 07 09 21

221

12 19

370 10 06 09 20

207

11 21

370 12 06 11 23

223

10 20

337 13 06 11 22

262

09 22

378 17 07 12 25

309 Total Electronic Components and Accessories 284 300 337 413 492 693 654 678 681 778

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

11 11 07

12 12 08

14 12 08

18 13 08

26 15 09

29 18 11

28 21 12

30 24 14

34 25 17

37 27 19

Total Scientific Instruments 30 31 35 39 49 58 60 68 75 83 Magnetic Recording Media 15 17 17 19 19 19 21 21 21 22 Prepackaged Software 02 02 03 04 05 06 05 06 06 05

Source International Trade Administration US Department of Commerce

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 32: Digital Economy 2000 Appendices - commerce.gov

Appendix Table 61 (contd) US Balance in IT Goods -- (Exports minus Imports)

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998 1999

US Balance in IT Goods -115 -146 -214 -292 -384 -504 -466 -425 -509 -659 Computer and Office Equipment

Electronic computers Computer storage devices Computer peripheral equipment nec Calculating and accounting equipment Office machines nec

50 -33 64

-04 -04

36 -34 62

-03 -03

33 -54 52

-04 -03

21 -62 38 -07 -04

34 -76 -16 -08 -05

43 -104

-01 -07 -08

30 -131

03 -07 -06

28 -160 -07 -07 -05

11 -147 -27 -07 -06

-18 -135 -71 -08 -06

Total Computer and Office Equipment 73 58 23 -14 -70 -77 -111 -152 -177 -238 Audio Video and Communications Equipment

Household audio and video equipment Telephone and telegraph apparatus Radio and TV communications equipment

-88 -17 -15

-90 -20 -16

-104 -19 -10

-107 -16 -06

-135 -12 -05

-146 -01 02

-134 03

-04

-144 02 26

-167 01 15

-201 -06 -23

Total Audio Video and Comm Equipment -121 -126 -132 -129 -152 -145 -134 -116 -152 -230 Electronic Components and Accessories

Electron tubes Printed circuit boards Semiconductors and related devices Electronic capacitors Electronic resistors Electronic coils and transformers Electronic connectors Electronic components nec

-01 00

-14 00

-01 -03 -02 -88

-01 -05 -22 01

-01 -03 -02 -92

-02 -02 -40 01

-02 -04 -02

-106

-01 -03 -59 00 -02 -05 -02

-131

00 -01 -85 00 -02 -05 -01

-124

02 -02

-165 00 -03 -07 -03

-167

05 -02

-130 03

-02 -06 -02

-157

11 -01 -81 04

-01 -07 -01

-162

15 01

-48 02

-01 -07 -01

-209

15 01 -12 00 00 -07 -02

-253 Total Electronic Components and Accessories -110 -125 -156 -203 -219 -346 -290 -236 -247 -257

Scientific Instruments Process and control instruments Instruments to measure electricity Analytical instruments

09 15 06

09 15 10

07 18 10

07 17 12

03 18 12

02 21 14

03 24 14

07 27 14

04 26 11

03 30 11

Total Scientific Instruments 30 34 35 36 33 37 40 49 41 44 Magnetic Recording Media 02 01 00 -03 -02 01 06 05 -01 -05 Prepackaged Software 10 13 17 21 26 26 23 27 26 28

Source International Trade Administration US Department of Commerce

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis

Page 33: Digital Economy 2000 Appendices - commerce.gov

Digital Economy 2000 ndash Appendices Page 29

Appendix Table 62 US Trade in IT Services

1990 1991 1992 1993 1994 1995 (Units $ Billions)

1996 1997 1998

Total US Exports 40 55 54 58 67 74 82 102 109 Telecommunications services 27 33 29 28 29 32 33 39 37 Computer-related services 13 22 25 30 38 41 49 62 72

Software royalties - - 11 13 15 17 21 27 32 Computer and information services 13 22 14 17 23 24 28 35 40

Total US Imports 57 68 63 68 73 79 89 92 91 Telecommunications services 56 66 61 64 69 73 83 84 81 Computer-related services 01 02 02 04 04 06 06 09 10

Software royalties - - 01 02 02 03 02 05 05 Computer and information services 01 02 01 02 02 03 04 04 05

US Balance in IT Services -16 -13 -08 -10 -06 -05 -07 09 18 Telecommunications services -28 -33 -32 -36 -41 -41 -50 -44 -44 Computer-related services 12 20 23 26 34 36 43 53 62

Software royalties - - 11 11 13 14 20 22 28 Computer and information services 12 20 13 15 21 21 24 31 35

For 1990 and 1991 software royalties are included in the data for computer and information services

Source Bureau of Economic Analysis