The Department of Economic Development has launched an important survey which will be used to assist in the calculation of the Isle of Man’s National Income as measured by Gross Domestic Product (“GDP”).
The Isle of Man is making alterations to the way in which it calculates national GDP by recognising Research and Development activity (R&D) in its own right which is consistent with international standards. It means that R&D is now considered as a product in its own account for GDP measurement purposes.
Minister for Economic Development Laurence Skelly MHK commented:
‘I would encourage Isle of Man businesses to participate as this is a survey of upmost importance. It will be central not just in calculating the Island’s GDP but will also inform key Government planning activity, such as economic growth planning and VAT revenue sharing arrangements with the UK.
‘The Department is issuing the survey with the intention of getting as many returns as possible from industry. Even if a business conducts no R&D, they can simply answer ‘no’ and return the survey as this will help develop an average R&D-by-employee figure.’
Considering R&D as a product in its own right will bring the Isle of Man in line with the European System of Accounts, which is used by the European Union and revised to reflect the changing nature of national economies.
The brief survey needs to be completed and returned by the end of September 2014. The data collected will be treated in the utmost confidence, be anonymised for analysis purposes and only the aggregated figures will be used in the National Accounts.
The survey can be accessed at www.whereyoucan.com/ibweb/res/general/Survey/IOMDED-RD-Survey.xls or by request from David Orders at firstname.lastname@example.org
Notes: The Department considers R&D to be:
- ‘creative work undertaken on a systematic basis to increase the stock of knowledge, and the use of this stock of knowledge for the purposes of discovering or developing new products, including improved versions or qualities of existing products, or discovering or developing new or more efficient processes of production’
- R&D will therefore include research and development of new and original computer software, creation of product prototypes (before commercial production) and research into the social sciences, arts and humanities.
- Efficiency studies, feasibility studies and market research studies are excluded.