Business Longitudinal Database and Business Characteristics Statistics

How we got here (History)Where we are at (Current) andWhere to from here (Future)

Over 10 years ago

• Business Longitudinal Survey had been conducted in the mid-1990’s but cancelled in 1999

• Strong user demand for it to be reinstated

• Early planning for the Business Longitudinal Database initiated

Why a BLD?

• Analysts and policy advisors are interested in understanding:– The activities or factors that are relevant to business

performance and productivity– The business characteristics that are associated with

these activities or factors

• Micro level (unit record) analysis over time is the best method of getting this understanding

The BLD vision

• Small “dense” BLD• ~2,000 SME-sized businesses in each panel/wave

with a combination of directly collected and administrative data, i.e. complete data for all businesses in the panel with a new panel each year plus some flexibility in design

• Large “sparse” BLD• To be created using the ABS unit record data stores

for all directly collected (irrespective of which survey) and administrative data, i.e. ATO data for all businesses plus data from other ABS surveys in which a business may have been included

The BLD is born

• New policy proposal successful in 2005 budget but…………

• First panel/wave initiated for 2004-05 financial year

In the meantime…

• As part of developing the BLD, the ABS reviewed of all of its “characteristics” type collections

ABS “characteristics” data collections• Business Use of Information

Technology – annual since early 1990’s

• Innovation – a couple of collections in the 1990’s and reinstated in 2002

Integrated Business Characteristics Strategy• Bring together existing IT use and

innovation collections with the new BLD direct collection component

• Get efficiencies from linked samples, common instruments and business processes

• Integrated data• Reduction in provider load

Business Characteristics Survey introduced• Core characteristics content• Core IT use and innovation content• Alternating IT use and innovation

detail• Capacity for a user funded module • First integrated survey conducted in

2005-06

Small “dense” BLD

• A new panel/wave each year• Each panel/wave is in for five years• Design is pretty simple: industry

division by employment size (i.e.. The stratum)

• Aim to have 30 businesses still live in each stratum at the end of 5 years, overall ~ 2,000 businesses

BLD design

• 4 employment size groups• Non-employers*• 0-4 employees• 5-19 employees• 20 -199 employees

• 14** Industry Divisions • Dominated by businesses which operate in the market

sector of the economy

* Not for all industry divisions** Number is different dependent on version of ANZSIC

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Panel 2

Panel 1

Panel 3

Panel 4

Panel 5

Panel 6

BLD

BLD – simple-structured micro, small and medium businesses

ANZSIC 1993 based

ANZSIC 2006 based

Business Longitudinal Database Design

What is in the BLD?• Direct collection – range of characteristics

including: Employment Finances Working arrangements Performance monitoring Markets and completion Basic set of IT use and innovation indicators

• Financial Data from the ATO Business Activity Statement and Business Income Tax

• Trade data from Customs and Border Protection Service Value of goods imports and exports by basic commodity type

Outputs

Business Longitudinal Database– Confidentialised Unit Record File:

accessible through ABS website remote access data laboratory• 2 have been released

– Unconfidentialised Unit Record File: accessible to ABS employees only• Analytical papers

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Panel 2Panel 1

Panel 3Panel 4

Panel 5Panel 6

BLD

Top-up for complex* and large businesses plus additional sample for accuracy of estimates

*includes complex small and medium businesses

Innovation, IT use and other business characteristics point in tim

e estim

atesBusiness Characteristics – point in time estimates

Innovation, IT Use and other Business Characteristics Statistics• Key Innovation and IT use

indicators collected every year (enables annual innovation rate to be released)

• Detail collected every second year

Outputs

ABS publications Key indicators: annually IT use and Innovation: biennially

(alternating topics) Other characteristics: annually

(including most items cross-classified by innovator status)

What haven’t we done

• Purposive panels/waves • Module – user funded content• Include data in the BLD from other

administrative sources• Create the large “sparse” BLD

Analysis using BLD

• Analytical Services Branch • 1351.0.55.035 - Research Paper: Competition, Innovation and Productivity in

Australian Businesses, Sep 2011

• 1351.0.55.033 - Research Paper: Business Innovation and the Use of Information and Communications Technology, Mar 2011

• National Statistics Centre for Innovation and Technology

• Replicating Business Innovation and the Use of Information and Communications Technology

• Change in broadband connection speed and Productivity

Business Innovation & ICT

• Association between ICT usage and innovation

• Created and ICT Intensity Index based on ICT Sophistication

• Regression modelling (binary and ordered Probit modelling)

Results of Analysis

• Increased sophistication of ICT use

– business significantly more likely to innovate– Held true for the different types of innovation– Also for various ICT Intensity Indexes (5)– More novel innovations– Multiple types of innovation – Develop Innovations internally

More Information:

• Innovation and Technology Statistics

• David Taylor Assistant Director NSC, Innovation and Technology Statistics

• Andrew Puljic - Assistant Director, Business Characteristics• Helen Teasdale - Assistant Director, Research & Statistical

Support

• david.taylor@abs.gov.au• helen.teasdale@abs.gov.au• andrew.puljic@abs.gov.au