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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
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
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
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
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 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
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 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
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
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
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 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
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
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
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 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
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 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
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
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
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
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
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 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
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 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
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 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
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
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
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
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
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