Enterprises established and bankruptcy proceedings in the information sector, 2003

Enterprise

In Standard for Industrial Classification (SN) an enterprise is defined as an organisational unit comprising all economic activities engaged in by one and the same owner. Hence an enterprise is a legal entity covering one or more productive units.

Bankruptcies

All juridical objects, which includes all types of firms/enterprises and individuals who have unpaid accounts and by definition insolvent, can be declared bankrupt. Insolvency is defined as: "When one can't fulfil its obligations after they have matured." An exception from this is when the insolvency is incidentally

New established enterprises

The number of new established enterprises is the number of a new enterprises corrected for the change of ownership. That is - new enterprises that take over existing activity are not counted as new established enterprise, but only as a new enterprise.

Employment and turnover

Figures on employment and turnover are refered to the last normal business year.

Employees

The number of employees comprises all persons that work for the employer more than 4 hours a week.

The Information sector contain of the ICT sector and the content sector. The ICT sector is delimited on the basis of a definition recommended by the OECD. An international delimitation of the content sector is no existence, so the content sector is delimitated on the basis of national definitions. The foundation of these definitions has been copied from notes that are published of UN and OECD. Viewpoints from national users are considered. The delimitation of the content sector is preliminary. An international delimitation is probably ready in connection with revision of the industrial classification standard in 2007.

ICT manufacturing industry

• 3001 Manufacture of office machinery
• 3002 Manufacture of computers and other information processing equipment
• 3130 Manufacture of insulated wire and cable
• 3210 Manufacture of electronic valves and tubes and other electronic components
• 3220 Manufacture of television and radio transmitters etc.
• 3230 Manufacture of television and radio receivers etc.
• 3320 Manufacture of instruments and appliances for measuring, checking, testing, navigating and other purposes, except industrial process control equipment
• 3330 Manufacture of industrial process control equipment

ICT wholesale and retail sales

• 51433 Wholesale of radio and television goods
• 51434 Wholesale of gramophone records, tapes, CDs and videos
• 51840 Wholesale of computers, computer peripheral equipment and software.
• 51860 Wholesale of other electronic parts and equipment.
• 52485 Retail sale of computers, office equipment and telecommunications equipment

Telecommunications

• 6420 Telecommunications

Computer and related activities

• 72 Computer-related activities - which cover the following subclasses:

o 7210 Hardware consultancy

o 7220 Software consultancy and supply

o 7230 Data processing

o 7240 Database activities

o 7250 Maintenance and repair of office, accounting and computing machinery

o 7260 Other computer-related activities

o 7133 Renting of office machinery etc is also included in the ICT industry. This (small) group is counted here under Data processing.

Content sector

Publishing

• 22.11 Publishing of books
• 22.12 Publishing of newspapers
• 22.13 Publishing of journals and periodicals
• 22.14 Publishing of sound recordings
• 22.15 Other publishing

Information services

• 74.40 Advertising
• 92.40 News agency activities

Radio and television

• 92.20 Radio and television activities

Motion picture and video activities

• 92.11 Motion Pictures and Video Production
• 92.12 Motion Pictures and Video Distribution
• 92.13 Motion picture projection

Delimitation of the ICT sector in OECD and Norway

In certain areas the Norwegian definition is somewhat more precise than the international definition. For 2003 and later years the delimitation of ICT wholesale are changed in respect to the revised industrial classification standard and new recommendations from OECD. Because of this the different statistics for the ICT sector are not comparable with earlier years.

The entire industrial class 5143 Wholesale of electrical household appliances, radio and television goods, gramophone records and cassettes is included in the OECD definition.

In the Norwegian definition we have chosen to exclude the following industrial subclasses:

• 51431 Wholesale of lighting equipment
• 51432 Wholesale of electrical household appliances

However, the subclass 52485 Retail sale of computers, office equipment and telecommunications equipment is included. This subclass is not included in the OECD definition.

The OECD definition is followed directly for the other industries.

The OECD's definition is linked to the international industrial classification, which is co-ordinated only down to four digits. However, Norway (and most other countries) use a more detailed fifth digit in their national industrial classifications. This is the basis for the more detailed national definitions.

The other Nordic countries also use a more precise definition of the ICT sector for national purposes. The Norwegian definition is co-ordinated as far as possible with the other Nordic countries.

Delimitation of the content sector

Content can be understood as a text, sound, image or any combination/series of these, intended for human beings. In order to be able to distribute the content, it must be combined with a communication medium. The medium can be paper-based or electronic-based (such as books, newspapers, radio, television, the Internet etc.) The combination of content and communication medium creates a content product available to the public. A content product can formally be defined as follows:

• A content product is a content which is open to the public and is published by a communication medium. The content has an organised message intended for human beings

This definition of a content product can be used to define a content industry.

• A content industry is an industry which is primarily engaged in the publishing and/or the distribution of content products.

The content sector includes industries in the present standard for industrial classification (SN94) that satisfy the definition of a content industry. The users of the statistics wish that the statistics should distinguish between publishing through "new" and "old" media. Unfortunately the division of the present standard for industrial classification is not adjusted to satisfy these wishes.

Weaknesses of the definition

A definition of the ICT sector and the content sector on the basis of entire industrial categories rather than on individual enterprises is bound to be rough. On the one hand, a number of enterprises falling within the definition are not really involved in related business. On the other hand a number of related enterprises may fall outside the definition. For the present, however, it is difficult to employ other more precise definition principles in the official statistics. In addition there are activities within the ICT sector that should be placed in the content sector regard to the definitions of the content sector. This concerns especially the industry 72.4 (Data base activities) and 72.2 (Software consultancy and supply). Since these industries contents a mix of ICT activities and content activities, we have decided that they should stay in the ICT sector in regard to continuity and comparability to international statistics for the ICT sector.

Industrial classification

Industrial classification of enterprises and establishments in the ICT sector and the content sector can be difficult. Many new enterprises are established in this area. Many existing enterprises are becoming more ICT-oriented. At the same time some ICT enterprises has changed their activity in the direction of the content sector (described as convergence). Businesses can change quickly and often and the Industrial Classification is not well suited for precise grouping in some of the newer areas of business. It can therefore be particularly difficult to obtain and maintain correct industrial codes for enterprises in the ICT sector and the content sector. Statistics Norway works continuously to ensure the quality of industrial coding and is particularly attentive to this area.