Growth Sectors - Data Sources and Sector Definitions



Growth Sector Statistics Database – User NoteIntroductionThe growth sector statistics database provides economic statistics for the six private sector dominated growth sectors as set out in Scotland’s Economic Strategy:Life Sciences Sustainable Tourism Creative Industries (including digital) Energy (including renewables) Financial & Business Services Food & Drink (including agriculture & fisheries) The growth sector definitions are based on Standard Industrial Classification (SIC) Codes 2007. This note summarises the SIC based approach to defining each of the growth sectors, and discusses the key caveats associated with the underlying data sources.Data available in each sourceFull Growth Sector Database:Data is provided for:Tables 1.1 to 1.4 (business counts from Inter Departmental Business Register) Tables 2.1 to 2.4 (data from Scottish Annual Business Statistics) Tables 2.5 to 2.6 (employment estimates from the Business Register and Employment Survey) Table 3 (median weekly gross pay from Annual Survey of Hours and Earnings) Table 4 (quarterly Scottish Gross Domestic Product (GDP) Index) Tables 5.1 to 5.5 (export data from the Export Statistics Scotland)Table 6 (data from Business Enterprise Research and Development)Table 7.1 to 7.6 (data from Inter Departmental Business Register prepared by ONS from Business Demography)The new Growth Sector definitions have been applied back in time as far as each data source allows so that there is not a step change in the economic statistics which would hinder time series analysis.The tables include, where possible, the UK, Scotland, the six growth sector totals and the SIC codes making up these growth sectors (see next section of this note for further details on the definitions).Local Authority Area Database:Data is provided for:Tables 1.1 to 1.2 (business counts from Inter Departmental Business Register) Tables 2.1 to 2.4 (data from Annual Business Survey) Table 2.5 (employment estimates from the Business Register and Employment Survey) Tables 3.1 to 3.4 (business counts from Inter Departmental Business Register) The tables include, where possible, Scotland and the six growth sector totals by Local Authority Area.International Tourism Definition:Data is provided for the International definition of the Tourism Industries for Scotland and the SIC codes making up this definition (see the section on Tourism Industries in this note for further details on this definition).Data is provided for:Tables 1.1 to 1.4 (business counts from Inter Departmental Business Register) Tables 2.1 to 2.4 (data from Scottish Annual Business Statistics) Tables 2.5 to 2.6 (employment estimates from the Business Register and Employment Survey) Table 3 (median weekly gross pay from Annual Survey of Hours and Earnings) Tables 5.1 to 5.5 (export data from the Export Statistics Scotland)Life Sciences Sourcebook:Data is provided for the Scottish Enterprise Life Sciences Sourcebook: derived from matching the Scottish Enterprise sourcebook to the Annual Business Survey (see the section on Life Sciences in this note for further details of the Sourcebook coverage).Defining Growth SectorsSIC codes allow businesses to be classified by the type of economic activity in which they are mainly engaged. The Growth sectors are defined by SIC Codes as follows however, and as discussed below, these definitions are a best fit or proxy in some cases.Life SciencesThe term Life Sciences reflects a wide range of activity including the discovery, research, development and manufacture of therapeutics; diagnostics; medical devices and platform technologies as well as the specialist suppliers of products and services necessary for these organisations to function. As such it is not possible to specifically define the industry in terms of SIC codes. However, a set of SIC codes (outlined below) can be used to track changes in part of the Scottish Life Sciences sector over time.071120Life SciencesSIC 21: Manufacture of basic pharmaceutical products and pharmaceutical preparationsSIC 26.6: Manufacture of irradiation, electromedical and electrotherapeutic equipmentSIC 32.5: Manufacture of medical and dental instruments and suppliesSIC 72.11: Research and experimental development on biotechnologySIC 72.19: Other research and experimental development on natural sciences and engineering 00Life SciencesSIC 21: Manufacture of basic pharmaceutical products and pharmaceutical preparationsSIC 26.6: Manufacture of irradiation, electromedical and electrotherapeutic equipmentSIC 32.5: Manufacture of medical and dental instruments and suppliesSIC 72.11: Research and experimental development on biotechnologySIC 72.19: Other research and experimental development on natural sciences and engineering Over the years, an alternative source for measuring the economic activity of the Life Sciences sector has been derived from a Scottish Enterprise maintained database of businesses involved in Life Sciences activities in Scotland. In 2014, a review of Scottish Enterprise’s database was undertaken which led to a refreshed Life sciences company list being compiled, which is now subject to yearly updates. Database covers the following groupings:AgritechConnected healthMedTechOther SectorPharma services and contract researchProfessional servicesTherapeuticsPharmaceuticals (SIC 21)The database encompasses a wide range of Life Science companies which includes Professional service businesses that support the sector e.g. legal services. However, in the refreshed Life sciences list, there is now more emphasis on companies being included in the database which have core activities in the sector. In summary, this cluster approach to defining Life Sciences is therefore based on the businesses identified as being directly part of the life sciences sector or, in some cases, businesses which provide services to the sector through its supply chain. Scottish Enterprise supplies the Scottish Government with its Life Sciences database each year so that estimates of turnover and GVA can be obtained by matching the Life Sciences database with financial data from the Annual Business Survey via a company matching exercise. Results produced cover 2010 onwards, as it was deemed that this time period would better reflect the coverage of companies included in the refreshed Life sciences database (rather than endeavour to produce more historic data). For information, Scottish Enterprise also calculates figures for overall number of organisations and employment in Life sciences. These figures are calculated by adding number of enterprises / employment from company matching exercise with number of organisations / people in Higher Education Institutions (HEIs) and number of organisations / people working in non-HEI organisations.Tables summarising statistics from the different sources can be found here: specific to Life Sciences estimates - derived from matching the refreshed Scottish Enterprise Life sciences database to the Annual Business Survey (ABS):The link above provides summary results from the matching exercise. Please note that data provided summarises matches with official datasets, it does not cover full Scottish Enterprise company list. Potential reasons for non-matching between databases include: inaccurate name and address details supplied for matching/ new companies still appear on Office for National Statistics business register (which is used to draw population for ABS)/ companies very small and outwith scope of register.The matching exercise is now carried out at an Enterprise (i.e. company) level for all groupings apart from a small number of identified companies within Professional services. Here, it was deemed more appropriate for matching to be made at business site level (meaning it is possible that some parts of a company in this grouping could be included within results whilst other parts are not).Results produced include Growth Sector Life Sciences codes for all ‘SIC 21: Manufacture of basic pharmaceutical products and pharmaceutical preparations’, ’SIC 26.6: Manufacture of irradiation, electromedical and electrotherapeutic equipment’ & ‘SIC 32.5: Manufacture of medical and dental instruments and supplies’ (under SIC 2007). These codes are included irrespective of whether or not their associated company names appears in Scottish Enterprise Life Sciences database, as it was deemed that these core SIC should be captured in results.However, Growth Sector Life Sciences code ‘SIC 72.1: Research and experimental development on natural sciences and engineering’ (under SIC 2007) has not been automatically included in results, as code coverage was deemed to not fully fall within the parameters of this matching exercise. However, some companies with this SIC code may be included in Scottish Enterprise’s database and be included in results, as they have been identified as being relevant to exercise.Sustainable TourismEconomic activity generated by tourism expenditure cannot be precisely captured using SIC Codes as tourism is a characteristic of demand rather than specific products or services. However, a number of industries within the service sector can be used to capture economic activity in a set of tourism-related industries – outlined below. Data based on this classification do not represent a direct measure of economic activity from tourism as part of the demand in these industries will be generated by non-tourists as well as tourists.-952585725Tourism-related IndustriesSIC 55.1: Hotels and similar accommodationSIC 55.2: Holiday and other short-stay accommodationSIC 55.3: Camping grounds, recreational vehicle parks and trailer parksSIC 56.1: Restaurants and mobile food service activitiesSIC 56.3: Beverage serving activitiesSIC 79.12: Tour operator activitiesSIC 79.9: Other reservation service and related activitiesSIC 91.02: Museum activitiesSIC 91.03: Operation of historical sites and buildings and similar visitor attractionsSIC 91.04: Botanical and zoological gardens and nature reserve activitiesSIC 93.11: Operation of sports facilitiesSIC 93.199: Other sports activities (not including activities of racehorse owners) necSIC 93.21 Activities of amusement parks and theme parksSIC 93.29: Other amusement and recreation activities 00Tourism-related IndustriesSIC 55.1: Hotels and similar accommodationSIC 55.2: Holiday and other short-stay accommodationSIC 55.3: Camping grounds, recreational vehicle parks and trailer parksSIC 56.1: Restaurants and mobile food service activitiesSIC 56.3: Beverage serving activitiesSIC 79.12: Tour operator activitiesSIC 79.9: Other reservation service and related activitiesSIC 91.02: Museum activitiesSIC 91.03: Operation of historical sites and buildings and similar visitor attractionsSIC 91.04: Botanical and zoological gardens and nature reserve activitiesSIC 93.11: Operation of sports facilitiesSIC 93.199: Other sports activities (not including activities of racehorse owners) necSIC 93.21 Activities of amusement parks and theme parksSIC 93.29: Other amusement and recreation activities There is an international definition of the Tourism Industries, data for which are provided to?allow comparisons between Scotland and?other countries.? The Scottish Government's preferred definition of the tourism-related industries for monitoring change in the Sustainable Tourism Growth Sector are available in the Growth Sector Statistics Database, using the SIC codes outlined above.The international definition of Tourism Industries is the same as that used by the Tourism Intelligence Unit at the Office for National Statistics, outlined in their Supply Side of Tourism: The Geography of Tourism Employment Release (November 2012). The TIU definition is as follows:The Tourism Industries at SIC2007 5 digit level (Sources: Eurostat, OECD and UNWTO)IndustrySIC 2007 code(s)Railway Passenger transport49100Road Passenger transport49320, 49390Water Passenger transport50100, 50300Air Passenger transport51101, 51102Accommodation for Visitors55100, 55201, 55202, 55209, 55300, 55900Travel agencies & other reservation services activities79110, 79120, 79901, 79909Food and beverage serving activities56101, 56102, 56103, 56210, 56290, 56301, 56302Transport Equipment Rental77110, 77341, 77351,Sporting and recreational activities77210, 92000, 93110, 93199, 93210, 93290Country-specific tourism characteristic activities82301, 82302, 68202Cultural Activities90010, 90020, 90030, 90040, 91020, 91030, 91040Creative IndustriesOn 28 June 2012, Creative Scotland, published the report “Economic Contribution Study: An Approach to the Economic Assessment of the Arts & Creative Industries in Scotland”, which is available here: Scottish Government (SG) Creative Industries Growth Sector definition was informed by the Economic Contribution Study. However, there are some definitional differences between the SG Growth Sector definition and the Creative Scotland economic contribution study definition, outlined below:For the Growth Sector definition ‘SIC 74.1: Specialised design activities’ is split between “Fashion and textiles” and “Design”. Whereas for the economic contribution study definition, ‘SIC 74.1: Specialised design activities’ is split between “Architecture” and “Design”.For the Growth Sector definition, ‘SIC 78.101: Motion picture, television and other theatrical casting’ is included in the “Performing Arts” definition. The economic contribution study definition splits SIC 78.101 out between “Performing Arts”, “Film and Video” and “Radio and TV”.For the Growth Sector definition, ‘SIC 74.203: Film processing’ is not included in the “Photography” sector, but it is in the economic contribution study definition.For the Growth Sector definition ‘SIC 63.91: News agency activities’ is included in the “Writing and Publishing” group – this code is not included in the economic contribution study definition. ?For the Growth Sector definition, ‘SIC 18.121: Manufacture of printed labels’, ‘SIC 18.140: Binding and related services’, ‘SIC 58.120: Publishing of directories and mailing lists’ and ‘SIC 74.300: Translation and interpretation activities’ are not included in the “Writing and Publishing” group, but they are included in the economic contribution study definition.For the Growth Sector definition only ‘SIC 91.01: Libraries and archive activities’ is included under “Heritage”, whereas the economic contribution study definition includes SIC 91.01 but also ‘SIC 91.02: Museum activities’, ‘SIC 91.03: Operation of historical sites and buildings and similar visitor attractions’ and ‘SIC 91.04: Botanical and zoological gardens and nature reserve activities’. Codes 91.02 to 91.04 have not been included in the Creative Industries Growth Sector definition because they are already included in the Sustainable Tourism Growth Sector definition.For the Growth Sector definition, under “crafts”, SG have not included parts of SIC codes 13, 14 and 15 as these are already covered by “Fashion and textiles”.The table in the ‘Creative Industries’ worksheet in the Growth Sector Database provides detail on the SIC 2007 codes making up the Creative Industries definition: SG analysts developed a consistent methodology to capture the creative element of the SIC codes and to share the SIC codes out across the domains and, using the Annual Population Survey.To capture the creative jobs within the SIC codes, the overlap between the SIC and SOC (Standard Occupational Classification) codes for the occupations specific to the creative industries is examined. For example for ‘SIC 16.29: Manufacture of other wood products’, the percentage of jobs in the SOC codes ‘5315: Carpenters and joiners’, ‘5323: Painters and decorators’, ‘5492: Furniture makers, other craft woodworkers’ and ‘5493: Pattern makers (moulds)’ is allocated as the creative proportion of employment for this SIC code (30%). The table below shows the SIC/SOC overlaps and the proportion allocation:SICSOCSIC 16.29: Manufacture of other wood products (30%)SOC 2000: 5315 Carpenters and joinersSOC 2000: 5323 Painters and decoratorsSOC 2000: 5492 Furntre mkr, other crft woodworkersSOC 2000: 5493 Pattern makers (moulds)SIC 14: Manufacture of wearing apparel (20%) and SIC 15: Manufacture of leather and related products (20%)SOC 2000: 5411 Weavers and knittersSOC 2000: 5413 Leather and related tradesSOC 2000: 5414 Tailors and dressmakersSOC 2000: 5419 Text, garment & related trades nec.SIC 23.13 Manufacture of hollow glass (15%) and SIC 23.19 Manufacture of other glass (15%)SOC 2000: 5491 Glss & cermic mkr, decortr, finshrSOC 2000: 5499 Hand craft occupations n.e.c.SIC 23.41 Manufacture of ceramic household and ornamental articles (35%) and SIC 23.49 Manufacture of other ceramic products (35%)SOC 2000: 5491 Glss & cermic mkr, decortr, finshrSIC 13: Manufacture of textiles (25%)SOC 2000: 5411 Weavers and knittersSOC 2000: 5412 UpholsterersSOC 2000: 5414 Tailors and dressmakersSOC 2000: 5419 Text, garment & related trades nec.SOC 2000: 5499 Hand craft occupations n.e.c.A similar approach is adopted to share the SIC codes across the domains. For example, the SOC code ‘3422: Product, Clothing and Related Designers’ covers 25% of ‘SIC 74.1: Specialised design activities’, so the Fashion and Textiles Domain is allocated 25% of the employment for this SIC code. The other 75% is allocated to the Design Domain. The table below shows the allocations for the other SIC codes:SICSOCDomain 1Domain 2SIC 74.1: Specialised design activitiesSOC 2000: 3422: Product, Clothing and Related DesignersFashion and Textiles (25%)Design (75%)SIC 59.12: Motion picture, video and television programme post-production activitiesSOC 2000: 3434 Photo. & audio-visual equip operatsFilm and Video (25%)Radio and TV (75%)SIC 90.03: Artistic creationSOC 2000: 3412 Authors, writersWriting and Publishing (30%)Visual Art (70%)SOC 2000: 3431 Journalists, newsppr & period edsThe creative industries are those industries that are based on individual creativity, skill and talent. They also include industries that have the potential to create wealth and jobs through developing intellectual property. It is important to note that there is a conceptual difference between measuring creative industries and creative jobs. The definition of creative industries allows identification of creative industries/businesses where products or services provided are identified to be creative in nature. Creativity can however also be a defining feature of a specific occupation or job rather than an end product or service. For the financial data from the Annual Business Survey (turnover, GVA and labour costs) the Creative Industries is restricted to the private sector only - public corporations/nationalised bodies, central government and local authorities are excluded for all years for these variables.Enterprise counts are provided for the Creative Industries subsectors – this is simply the proportion applied to the enterprise count for that SIC Code.Measuring the Computer Games Sector as at April 2013Official employment and financial statistics for industry sectors are built up from data collected, from businesses, by the Office for National Statistics (ONS).Every business that is VAT and/or PAYE registered in the UK is included in the Inter-Departmental Business Register (IDBR). The IDBR, maintained by the ONS, is used as the main sampling frame for ONS business surveys such as:1. Annual Business Survey (ABS) – this is the source for detailed industry sector estimates of turnover, purchases, GVA, etc.2. Business Register and Employment Survey (BRES) - this is the source for detailed industry sector estimates of employment. (See Data Sources section below for more information on these)Since moving from the old SIC 2003 codes to the new SIC 2007 codes, this has allowed the computer games industry to be specifically identified for the first time. The SIC 2007 codes for the computer games industry are:SIC 58.21: Publishing of computer gamesThis class includes:–– publishing of computer games for all platformsSIC 62.01/1: Ready-made interactive leisure / entertainment software developmentThis subclass includes the development, production, supply and documentation of ready-made interactive leisure and entertainment software, such as games software, designed for publication by a different enterprise. A key component part of the software is audio-visual content with which the user interacts. The software can be published across any format, such as games consoles, the internet and mobile phones.The ProblemIn the past official statistics for the computer games industry (as defined by SIC 2007 58.21 and SIC 2007 62.011) were at odds with industry figures which, for example, estimate computer games company employment in Scotland at around 600 rather than 200. Understanding and Addressing the Problem To understand the problem Scottish Government (SG) analysts considered the list of developers/publishers available from the Company Directory (as at October 2012). This list of 77 companies was matched to the IDBR, using company name, trading name and location information. This resulted in 45 (58%) matches, and so 32 (42%) of the companies on the directory list could not be matched. By considering information on websites and Companies House, the non-matched companies appeared to be either very small and/or very new. It can take time for enterprises to register for VAT/PAYE when they first start-up and so some of the non-matched companies may appear on the IDBR in time – but others, that never operate a PAYE scheme and never generate a turnover above the VAT threshold (currently ?77,000 per year), may not. The 45 companies, that could be matched to the IDBR, were then matched into the latest Business Register and Employment Survey (BRES) data for 2011. The table below shows that the matched companies account for 600 jobs – with 400 of these jobs falling under SIC codes outside the specific Computer Games codes (SIC 58.21 / SIC 62.011). SIC 2007 codesNumber of jobsComputer Games (SIC 58.21 / SIC 62.011)200SIC 62.02 (Computer Consultancy Activities) or SIC 62.09 (Other information technology and computed services activities)300Other SIC Codes100Totals600Source: BRES 2011 (ONS)Figures are rounded to the nearest hundred.ONS agreed to change all the matched companies falling under SIC 62.02 and SIC 62.09 to SIC 62.011 to bring them into the computer games industry. ONS made the changes to the IDBR, which means that all surveys sampled from the IDBR were updated to reflect this change too. And, therefore, when the BRES employment data for 2012 and revised data for 2011 was published in September 2013 the computer games industry estimates were revised, and the estimated employment was in the region of 500-600 jobs, which was line with industry estimates.The changes also followed through to the GVA data from the SABS, published in August 2013, since the ABS is also sampled from the IDBR. The SABS figures for the computer games sector have been revised back to 2010 to take account of the methodological changes made on the back of the work with the industry. So there is a step change in the results for the sector with comparable figures for 2010/2011 but these are not comparable with the results for 2008/2009. In terms of the impact that this change had on the overall Creative Industries figures – the impact was small – the movers into the computer games came from codes 62.02 and 62.09. Those in code 62.02 were already being counted under software/electronic publishing, it would only be those in code 62.09 that would be new to the creative industries as a whole for 2010/2011. EnergyThe Energy Growth Sector is defined in terms of SIC Codes as follows: 11430097155EnergySIC 05: Mining of coal and ligniteSIC 06: Extraction of crude petroleum and natural gasSIC 09: Mining support service activitiesSIC 19: Manufacture of coke and refined petroleum productsSIC 20.14: Manufacture of other organic based chemicalsSIC 35: Electricity, gas, steam and air conditioning supplySIC 36: Water collection, treatment and supplySIC 38.22: Treatment and disposal of hazardous wasteSIC 71.12/2 Engineering related scientific and technical consulting activitiesSIC 74.90/1 Environmental consulting activities 00EnergySIC 05: Mining of coal and ligniteSIC 06: Extraction of crude petroleum and natural gasSIC 09: Mining support service activitiesSIC 19: Manufacture of coke and refined petroleum productsSIC 20.14: Manufacture of other organic based chemicalsSIC 35: Electricity, gas, steam and air conditioning supplySIC 36: Water collection, treatment and supplySIC 38.22: Treatment and disposal of hazardous wasteSIC 71.12/2 Engineering related scientific and technical consulting activitiesSIC 74.90/1 Environmental consulting activities Oil & GasThere is an issue with regards to the treatment of SIC 6: Extraction of crude petroleum and natural gas. Estimates of GVA (from the Scottish Annual Business Statistics) and employment (from the Business Register and Employment Survey) are allocated to UK regions (including Scotland) according to the address at which the business is registered - onshore and offshore Oil & Gas extraction and activities are allocated in this way. GVA associated with off-shore activity, under UK regional accounts procedures, is normally allocated to a separate ‘Extra Regio’ category rather than allocated to a region within the UK.A number of different approaches can be used to allocate a share of economic output to Scotland under various assumptions about the delineation of the oil and gas industry. The Government Expenditure and Revenue Scotland (GERS) report provides two illustrative approaches for estimating Scotland’s share of North Sea revenue and Gross Domestic Product. And the Scottish Government also produces estimates of Scotland's GDP which includes the "Scottish Zone" of the North Sea (either by population share or geographical share), available in table 10 in the latest Quarterly National Accounts Scotland (QNAS) publication: industry body Oil and Gas UK provides additional detail on the contribution of the sector by assessing the employment supported in the industry’s supply chain and wider economy.Renewable EnergyThe renewable energy industry is not assigned a Standard Industrial Classification (SIC) code and therefore is not identified as a separate sector of the economy for statistical reporting purposes. While some portion of renewable energy related output and employment will be captured in other energy sectors, for example large electricity generators based in Scotland will have a renewable energy division, other activities focussed on servicing the sector will be categorised under the core function of the business, for example, construction, manufacturing or business services.Financial and Business ServicesThe Financial and Business Service Growth Sector is defined, in terms of SIC Codes, as follows:-1030466675Financial and Business ServicesSIC 64.1: Monetary intermediationSIC 64.3: Trusts, funds and similar financial entitiesSIC 64.9: Other financial service activities, except insurance and pension fundingSIC 65: Insurance, reinsurance and pension funding, except compulsory social securitySIC 66: Activities auxiliary to financial services and insurance activitiesSIC 69.1: Legal activitiesSIC 69.2: Accounting, bookkeeping and auditing activities; tax consultancySIC 70.2: Management consultancy activitiesSIC 71.129: Other engineering activities (not including engineering design for industrial process and production or engineering related scientific and technical consulting activities)SIC 73.2: Market research and public opinion pollingSIC 74.3: Translation and interpretation activitiesSIC 78.109: Activities of employment placement agencies (other than motion picture, television and other theatrical casting) n.e.c.SIC 78.3: Other human resources provision00Financial and Business ServicesSIC 64.1: Monetary intermediationSIC 64.3: Trusts, funds and similar financial entitiesSIC 64.9: Other financial service activities, except insurance and pension fundingSIC 65: Insurance, reinsurance and pension funding, except compulsory social securitySIC 66: Activities auxiliary to financial services and insurance activitiesSIC 69.1: Legal activitiesSIC 69.2: Accounting, bookkeeping and auditing activities; tax consultancySIC 70.2: Management consultancy activitiesSIC 71.129: Other engineering activities (not including engineering design for industrial process and production or engineering related scientific and technical consulting activities)SIC 73.2: Market research and public opinion pollingSIC 74.3: Translation and interpretation activitiesSIC 78.109: Activities of employment placement agencies (other than motion picture, television and other theatrical casting) n.e.c.SIC 78.3: Other human resources provision 0932815Finanical and Business Services – ContinuedSIC 82.1: Office administrative and support activitiesSIC 82.2: Activities of call centresSIC 82.3: Organisation of conventions and trade showsSIC 82.91: Activities of collection agencies and credit bureausSIC 82.99: Other business support service activities n.e.c.00Finanical and Business Services – ContinuedSIC 82.1: Office administrative and support activitiesSIC 82.2: Activities of call centresSIC 82.3: Organisation of conventions and trade showsSIC 82.91: Activities of collection agencies and credit bureausSIC 82.99: Other business support service activities n.e.c.The coverage of the financial element of the Annual Business Survey (which provides estimates of turnover, GVA and labour costs) does not extend to all of the Financial sub-sectors. None of SIC 64.1: Monetary intermediation, SIC 64.3: Trusts, funds and similar financial entities and SIC 66: Activities auxiliary to financial services and insurance activities are covered in ABS. Scotland level ABS data for SIC 65.1 and SIC 65.2 (Insurance and Reinsurance) was previously published in the Growth Sector database but was removed in April 2013. The reason for the removal of this data is that the validation of data returns for 2011 highlighted that a small number of businesses within the insurance sector were returning global figures rather than UK only.Food and DrinkThe Food and Drink Growth Sector is defined, in terms of SIC Codes, as follows:00Food and DrinkSIC 01: Crop and Animal Production, Hunting and Related Service ActivitiesSIC 03: Fishing and AquacultureSIC 10: Manufacture of Food ProductsSIC 11: Manufacture of Beverages 00Food and DrinkSIC 01: Crop and Animal Production, Hunting and Related Service ActivitiesSIC 03: Fishing and AquacultureSIC 10: Manufacture of Food ProductsSIC 11: Manufacture of Beverages Note the coverage of the Annual Business Survey does not extend to Agriculture. However, turnover, GVA and labour costs for Agriculture are included in the growth sectors statistics database, sourced from the Economic Report on Scottish Agriculture. Similarly the Agriculture employment figures are sourced from the Agricultural Census.Data SourcesInter-Departmental Business Register (IDBR) (Tables 1.1 to 1.15 and 7.1 to 7.6)The IDBR is the comprehensive list of UK businesses that are registered for VAT and/or PAYE. The IDBR covers businesses in all parts of the economy, other than the smallest businesses (those without employees and low turnover) and some non-profit making organisations. In terms of growth sectors this has the biggest impact on the Creative Industries due to the dominance of small businesses.The data provided in Tables 1.1 to 1.15 are based on the number of enterprises that operate in Scotland irrespective of whether their head office is located in Scotland or elsewhere. Data for tables 7.1 to 7.6 is discussed below.The enterprise counts are based on a snapshot from the IDBR in March of each year. A count of the IDBR enterprises that were "live" at the snapshot date is achieved by referring to each enterprise's recorded start date and, where appropriate, its closure date. The reporting of these dates is subject to a number of time delays. For example when an enterprise closes there may be a delay before HMRC, who collect VAT, are informed. Closure of the VAT record may then be delayed until all liabilities are settled. There may also be lags in recording PAYE data.For more information on the IDBR please visit:IDBR Definitions and MethodologyAnnual Business Survey (ABS) (Tables 2.1 to 2.4) Scottish Annual Business Statistics (SABS) is based on data from the Annual Business Survey (ABS) (formerly Annual Business Inquiry (ABI)) conducted by the Office for National Statistics (ONS). The IDBR is used as the main sampling frame for the ABS.Scottish Annual Business Statistics (SABS) provides data mainly on the Manufacturing, Construction and Service Sectors in Scotland. The Annual Business Survey, from which the statistics are derived, covers approximately two thirds of the economy. The main sectors not covered are parts of agriculture, financial and the public sector. These statistics are therefore best suited to the analysis of individual industries rather than the economy as a whole.One of the main limitations of the ABS is that it does not include the smallest self employed businesses i.e. the smallest businesses that are not registered for VAT and/or PAYE.For more information on the ABS please visit:ABS Definitions and MethodologyBusiness Register and Employment Survey (BRES)(Tables 2.5, 2.6)BRES is an employer-based survey and is the main source of employment estimates. BRES includes all industries except parts of the agricultural sector. One of the main limitations BRES are that it does not include the smallest self employed businesses i.e. the smallest businesses that are not registered for VAT and/or PAYE. The IDBR is used as the main sampling frame for the BRES.The employment estimates are for direct employment within each sector and consequently do not capture the economic value and employment that the sectors support in other areas of the economy.BRES data in tables 2.5 and 2.6 are presented from 2009 onwards. Data for 2008 has not been included as figures are based on a combination of Annual Business Inquiry part 1 (ABI 1), Business Register Survey (BRS) and BRES returns. Therefore, the figures for 2008 are not strictly comparable to those for 2009. Discontinuity issue: 2009/10 and 2011BackgroundChanges in the treatment of working owners of limited companies in the BRES 2011 questionnaire led to a discontinuity between the 2009/10 and 2011 BRES results.What are working owners? Working owners include sole traders, sole proprietors and partners. Cognitive testing carried out by the Office for National Statistics (ONS) has shown that directors of limited companies often consider themselves to be in this category too. However, it is clear from HMRC guidance that these should be classified as employees of the company. Changes were made to the BRES questionnaire to ensure directors of limited companies were correctly accounted for.Is there a discontinuity in the employment figures? Simply counting directors of limited companies as employees rather than working owners should not have any effect on employment estimates, as employment is the sum of employees plus working owners. However, measuring this discontinuity was further complicated by the discovery of instances of double counting of working owners (directors of limited companies) in the 2009 and 2010 results, which made them not directly comparable with the 2011 employment estimate. Directors of limited companies may have been included by those completing the questionnaire in both the employees’ and the working owners’ categories. This anomaly does not exist for the 2011 results due to a change in the treatment of working owners in the 2011 questionnaire. For more information on the discontinuity issue please visit:BRES Quality and MethodsCurrent Growth Sector Database dataThe ONS published, at the regional and sub-regional level, an adjusted version of the 2014 results on 24 September 2014, along with a set of revised estimates for 2013. For more information on the BRES please visit: HYPERLINK "" BRES Definitions and MethodologyAnnual Survey of Hours and Earnings (ASHE) (Table 3)ASHE is the official source of earnings information and is based on a 1 per cent sample of employee jobs taken from HMRC PAYE records. The information on earnings and hours is sourced directly from employers, relating to a specific pay period in April of each year. ASHE does not cover the self-employed. The preferred measure of average earnings is the median (the value below which 50 per cent of employees fall) as it is less affected by extreme values and the skewed distribution of earnings data. For more information on the ASHE please visit:HYPERLINK ""ASHE Definitions and MethodologyQuarterly Scottish Gross Domestic Product Index (GDP Index) (Table 4)Gross Domestic Product (GDP) is an estimate of total economic activity in Scotland. Formally, it is a measure of the value added to materials and other inputs in the production of goods and services by resident organisations (before allowing for depreciation or capital consumption). Net receipts from interest, profits and dividends abroad are excluded. The index for each industry represents the volume of GVA created by that industry compared to the 'base' year (currently 2012). Figures are deflated to remove the effect of price changes over time to produce an estimate of real terms (or constant price) growth in that industry. The figures are seasonally adjusted to remove the effect of seasonality in certain industries.The 2014 Quarter 4 GDP estimates for Scotland incorporated a number of updates to comply with National Accounts regulations as set out in the European System of Accounts (ESA) 2010. A paper with details on the methodology changes implemented in the 2014 Q4 GDP release can be assessed from the following link: SIC 2007 methodology The GDP series for the growth sectors is chained volume measures of output in the relevant industries.In general the lowest level of detail at which underlying GDP estimates are made is for the 111 industries defined in Supply-Use tables. These are largely 2 digit SIC groups or amalgamations of 2 digit SIC groups. Due to the lack of fine SIC resolution the GDP volume series will therefore be approximations of the growth sectors output, defined by how well the growth sectors map to the 111 industries. This will include: Food and Drink: Complete coverage of this Growth Sector. SICs 01, 03, 10, 11 Financial & Business Services: The supplied index will cover all of SIC 64, 65, 66, 69, and 82 A 2012 based fixed proportion of total output in SICs 70 (78%), 71 (54%), 73 (10%), and 78 (19%) And none of SIC 74 (companies included in the growth sector amount to less than 15% of the total group) Life Sciences: The supplied index will cover all of SIC 21, and 72A 2012 based fixed proportion of total output in SIC 32 (61%)None of SIC 26 Energy: All of SICs 05,06 [onshore only, will be zero], 09, 19, 20, 35, and 36A 2012 based fixed proportion of 38 (14%), and 71 (30%)None of SIC 74 Tourism: All of SICs 55, 56, and 91A 2012 based fixed proportion of SIC 79 (21%), and 93 (50%) Creative Industries: All of SICs 13, 14, 15, 58, 59, 60, and 90A 2012 based fixed proportion of output in SICs 18 (85%), 23 (35%), 31 (30%), 62 (75%), 73 (90%), and 74 (26%)None of SIC 16, 32, 47, 63, 71, 78, 85, 91, and 95 For more information on the GDP Index please visit: GDP Index Definitions and MethodologyExport Statistics Scotland (ESS)(Table 5.1 to 5.5) Export Statistics Scotland is largely based on Scotland’s Global Connections Survey (GCS). Scotland’s GCS is a sample survey, which is circulated to a representative sample of around 6,500 companies in Scotland each year. The companies are selected using stratified random sampling from the Inter Departmental Business Register (IDBR).Data from the completed responses is supplemented with data from the Office for National Statistics UK Monthly Business Survey (Production and Services), the ONS Monthly Business Survey Retail Sales Inquiry, the ONS Annual International Trade in Services Survey and the ONS Annual Business Survey. Partial information is also obtained directly from some major companies that do not always return forms.The data is grossed up to cover all companies on the IDBR using turnover. This is done at reporting unit level, i.e. based on the sum of activity of all Scottish local units. Companies are classified to an industry based on the SIC of the local unit with the most employees. With some exceptions (note on Adjustments below) export estimates are constrained to IDBR turnover.Grossing ProceduresFirstly, total exports for each company are estimated using a process of iterative stratification based on combinations of the following factors:Employment sizebandStandard Industrial ClassificationPrior knowledge that the company exported (as used in sampling frame)Enterprise regionInitially companies are classified?at the most detailed level of each of these factors. For any group containing 10 or more companies in the sample, the ratio of exports to turnover is calculated and applied to companies in the population with the same properties.The process then involves collapsing categories (firstly employment is collapsed from 6 bands into 5, then at the next iteration SIC codes are collapsed from 5-digit to 4-digit) and at each stage the proportions of goods and services exported for each company in the population are estimated based on the sample data for companies in that particular group. At the final stage, all remaining companies are classified by 2-digit SIC codes. Due to sample sizes, it is not always possible to produce grossed estimates at 5-digit SIC level and for this reason, estimates are mostly only available for a Growth Sector as a whole.AdjustmentsBanking [SIC 2007: 64.191]: For 2011 to 2019, the information is based on a Scottish Government collection of total sales and sales to non-UK resident customers for the four largest organisations in this rmation on exports for the banking sector prior to 2011 was based on export sales information provided by The Committee of Scottish Clearing Bankers (CSCB), now The Committee of Scottish Bankers. The Committee of Scottish Clearing Bankers also provided a split of international and rest of UK sales.Marine Fishing [SIC 2007: 03.11]: Estimates of international and rest of the UK marine fishing exports are sourced from the SG Marine Scotland publication Scottish Sea Fisheries Statistics. Exports are estimated using the value of landings by Scottish vessels. Spirits [SIC 2007: 11.01]: Estimates of international whisky exports are sourced from HMRC Overseas Trade Statistics (OTS) based on the export values for all Scotch Whisky Commodities reported to HMRC. We also include estimates for exports of gin and vodka, using this OTS data, to improve estimates for this sector. This is based on a proportion of the UK total, which is sourced from the OTS data. [SIC 2007: 11.05]: Estimates of international beer exports are sourced from HMRC Overseas Trade Statistics (OTS) based on the export values for all beer commodities reported to HMRC. We have then applied a proportion based of the UK total to estimate Scotland’s exports from this sector. Education [SIC 2007: 85.4]: Estimates of turnover and international/rest of UK higher education exports are sourced from Higher Education Institution annual reports. Student numbers by Higher Education Institute and domicile for the academic years 2008/09 to 2018/19 are provided by the Higher Education Statistics Agency (HESA). This data is used to determine the proportions of international exports to the EU and the rest of the World.Energy [SIC 2007: 35]: Information on rest of UK energy export proportions is obtained from the publication below: note, ESS is not designed to produce accurate estimates at a low SIC level and the Growth Sector estimates should be treated as indicative.For more information on ESS please visit: ESS MethodologyBusiness Enterprise Research & Development (BERD) Survey (Table 6) Business Enterprise Research & Development (BERD) expenditure is based on data from the BERD survey conducted by the Office for National Statistics (ONS). The ONS BERD survey follows the definition of research and development proposed by the Organisation for Economic Cooperation and Development (OECD) and published in the ‘Frascati’ Manual. According to the manual, R&D is defined as:“Creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of the stock of knowledge to devise new applications.”The definition therefore excludes activities such as market research, most software development, routine testing and quality control and artistic design work.The ONS BERD survey is an annual sample survey based on a continually updated register of R&D performers. Approximately 5,500 questionnaires are sent to businesses in the UK known to perform R&D; this included around 400 of the largest R&D spenders. Smaller R&D performers and others believed to be performing R&D are sampled. Industry product group and business employment size are the stratification variables. The largest R&D performers account for approximately 79% of the total UK expenditure. Each of these large R&D performers is asked to name all the sites at which the business performed R&D and to estimate the R&D spend at that site, this expenditure is then allocated to the appropriate region. Regional data for the smaller R&D performers are estimated from sample returns.BERD estimates by Standard Industrial Classification (SIC) are derived by allocating business expenditure to industry classifications using the Inter-Departmental Business Register (IDBR). The IDBR is a list of UK businesses that is maintained by ONS and holds information on the business activity (based on SIC) of every business. Please note that R&D expenditure is published by ‘Product Group’ rather than SIC classification in the BERD publication - although product groups are related to SIC codes, this difference could lead to slight differences in estimates.For more information on BERD statistics please visit:BERD ScotlandBusiness Demography(Table 7.1 to 7.6)Business Demography data is produced by ONS from an extract taken from the Inter-Departmental Business Register (IDBR) recording the position of units as at November of the reference year, and excludes central government and local authorities.?The starting point for the calculation of business demography data is the concept of activebusinesses in a reference year. These are defined as businesses that had either turnover oremployment at any time during the reference period. New business registrations are referred to as business births and the birth rate is calculated using the number of births as a proportion of the active enterprises. Businesses that have ceased to trade are referred to as business deaths and the death rate is calculated using the number of deaths as a proportion of the active enterprises. These figures relate to VAT/PAYE registration figures, and the figures do not represent a complete picture of business activity therefore as only businesses that are registered for VAT and/or operate a PAYE scheme are included. The figures consequently exclude around half of all firms – these excluded unregistered firms contribute an estimated 2% of economic activity in Scotland.For more information on the IDBR please visit:IDBR Definitions and MethodologyFor more information on Business Demography, please visit:ONS Business DemographyGuide to the ONS business population and demographics statistics publications ................
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