Measuring ICT in Europe – EITO’s experience

Axel Pols

German Association for IT, telecom and new media (BITKOM)

European Information Technology Observatory (EITO)

Geneva, 2 June 2006

””Digital Transformations in the Information Digital Transformations in the Information Society” meeting Society” meeting

European Information Technology European Information Technology Observatory - members and sponsorsObservatory - members and sponsors

SponsorsFounding members

EITO – general informationEITO – general information

Broad and unique European initiative, founded in the early nineties

Publishes the established yearbook for the ICT and CE industry in Europe

Contains detailed data and information both by country and by market segment

Presents special studies on topics of particular interest

Produced by the EITO Task Force experts in co-operation with leading market research institutes

EITO 2006 - contentsEITO 2006 - contents

The evolution of the European E-economy

The ICT market in Europe

The digital broadband value-added services industry

and markets in Europe: P2P networks and markets

The CE market in Western Europe

Statistical outlook

EITO Statistics in terms of OECD framework EITO Statistics in terms of OECD framework

READINESS

ICT investment, ICT

spending, ICT

occupations,

telecommunication

access paths, broadband

penetration rates,

Internet hosts, number of

Websites, Internet

access prices

USE

Internet subscribers, PC per

population, Internet use

by households and

individuals, Internet use by

enterprise size and industry,

Internet transactions

IMPACTS

Value added,

employment, R&D and

patents in ICT industries,

trade in ICT goods,

cross-border

mergers, acquisitions, alliances

Source: OECD

in red: covered by EITO

Analysis of ICT spending: some challengesAnalysis of ICT spending: some challenges

Evaluation of data quality: variety of sources,

concepts, definitions

Market segmentation: distinguish temporary from

permanent developments

The concept of end-user spending: what is the price

of a cellular phone?

Exchange rate issues

Nominal versus real changes

Benchmarking ICT spending (1) Benchmarking ICT spending (1)

ICT expenditure as % of GDP: the higher the better?

0

2

4

6

8

10

12

Bu

lga

ria

Est

on

ia

La

tvia

Sw

ed

en

Hu

ng

ary

Ro

ma

nia UK

Lith

ua

nia

Sw

itze

rla

nd

Jap

an

Ne

the

rla

nd

s

Po

rtu

ga

l

Po

lan

d

Fin

lan

d

US

Slo

vaki

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Cze

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ep

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Be

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m/L

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mb

ou

rg

Au

stri

a

Ge

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ny

Fra

nce

Sp

ain

Slo

ven

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Italy

No

rwa

y

Ire

lan

d

Gre

ece

Source: EITO 2006 in co-operation with IDC

Benchmarking ICT spending (1)Benchmarking ICT spending (1)

ICT expenditure as % of GDP: the higher the better?

Level of ICT infrastructure: need to catch up?

Different price levels

Efficiency of expenditure

Economic structure

Consumer versus business spending

Benchmarking ICT spending (2) Benchmarking ICT spending (2)

ICT expenditure per capita: what the figures (don’t) tell

0

500

1000

1500

2000

2500

3000

Sw

itze

rla

nd

Sw

ed

en

De

nm

ark

Jap

an

No

rwa

y

UK

Ne

the

rla

nd

s

Fin

lan

d

US

Be

lgiu

m/L

uxe

mb

ou

rg

Au

stri

a

Ge

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ny

Ire

lan

d

Fra

nce

Sp

ain

Po

rtu

ga

l

Gre

ece

Slo

ven

ia

Hu

ng

ary

Est

on

ia

Cze

ch R

ep

ub

lic

La

tvia

Slo

vaki

a

Lith

ua

nia

Po

lan

d

Bu

lga

ria

Ro

ma

nia

Source: EITO 2006 in co-operation with IDC

Benchmarking ICT spending (2)Benchmarking ICT spending (2)

ICT per capita: what the figures (don’t) tell

Comparative price levels?

Consumer versus business spending

Concentration of expenditure (age, income, region)

Conclusion: indicators need to be Conclusion: indicators need to be interpreted carefullyinterpreted carefully

Combine supply-side and demand-side analysis

Try to distinguish between ICT spending of

consumers, business, and public sector

Look at comparative HW, SW, Services shares in

total ICT

Look at share of consumer budget spent on ICT

Consider growth dynamics

More information and contactMore information and contact

German Association for information technology,

telecommunications and new media (BITKOM)

www.bitkom.org

European Information Technology Observatory

www.eito.com

Axel Pols - a.pols@bitkom.org