Regional variables

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All sectors FTE R&D personnel

This indicator gives an idea of the amount of research and development going on in a regional economy, which in turn provides an indicator of the region’s relative position in relation to high-skill, high-tech activities. The abbreviation ‘FTE’ refers to ‘full-time equivalent’, ie the number of people employed in research and development (or ‘R&D’) activities, taking account of the reduced working time of part-time employees. The definition used here is the one developed by the OECD in its Frascati Manual. It includes any persons who work in R&D or support R&D (eg managers, administrative staff etc.). This indicator covers such people across all sectors of a regional economy. See also ‘Business enterprise FTE R&D personnel’.

A full definition of research according to the Frascati Manual.

Business enterprise FTE R&D personnel

See ‘all sectors FTE R&D personnel’ for a definition of ‘FTE R&D personnel’. This indicator makes it possible to focus more closely on the sectors most likely to be involved in developing eService activities, ie the private sector. The term ‘Business enterprise’ excludes the public sector. This indicator thus excludes R&D activities taking place in the universities or government departments.

Employed (% all population)

This indicator makes it possible to compare the proportion of the population in the workforce (ie all those people in employment, including the self-employed) between different regions (see also ‘employment in IT sector as a % of total’). It should be noted that this indicator shows the workforce as a percentage of the total population. Like the ‘age dependency ratio’ (see country variables) it therefore helps to give an indication of the number of dependents each worker has. Please note that this figure does not include the unemployed.

Employment in IT sector (NACE 30 + NACE 72) as a % of total employment

See also ‘employed (% of all population)’. It can sometimes be useful to compare regions on the basis of how developed their IT (information technology) sector is. This indicator is based on adding together the people employed in two sectors in each region. The first of these sectors, is coded NACE 30 under the European Commission’s standard economic nomenclature. This is ‘Manufacture of office machinery and computers’. It is in turn broken down into two halves: ‘manufacture of office machinery’ and ‘manufacture of computers and other information processing equipment’. The second sector is NACE 72, known as ‘computer and related activities’. This covers ‘hardware consultancy’, ‘software consultancy and supply’, ‘data processing’, ‘database activities’, ‘maintenance and repair of office, accounting and computing machinery’, and ‘other computer related activities’. Together, these activities give an indication of the importance of the IT sector in the local economy, which in turn provides some clues about the likely levels of technological skills in the local workforce. In other words it gives an indication of how ‘high-tech’ the region is compared with other regions.

Please note that this variable gives the IT workforce as a percentage of the total workforce. See also ‘employment in IT sector’ and ‘those in ITCE occupations’.

Employment in IT sector (NACE 30 + NACE 72)

This indicator gives the numbers of people employed in the IT sector in a region (see ‘employment in IT sector (NACE 30 + NACE 72) as a % of total employment’ for a definition of this sector.

This variable gives an indication of how large the IT-skilled workforce is in absolute terms in any given region. Even a region that scores relatively low on employment in this sector as a percentage of all employment might nevertheless, because it has a large working population, score high on this variable. Inward investors will be interested in this figure because it will give them an idea of the size of the potential IT workforce. It should be noted that this indicator measures those who are employed in the IT sector. It therefore includes people who work for IT companies who are not necessarily IT specialists. It should therefore be compared with the further variable, ‘those in ITCE occupations’ (see below).

Establishments with >50 employees, employing home-based eWorkers

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator shows the percentage of establishments that employ people working full-time from their homes using a telecommunications link to deliver the work. It covers only employees who work in this way and excludes the self-employed, who are recorded separately as ‘eWorking freelances’ also known as ‘eLancers’ (see below).

Establishments with >50 employees, employing multilocational eWorkers

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator shows the percentage of employers employing people working partly from their homes and partly from an office base, or working nomadically from several different locations, using information and communications technologies to keep in touch with their employer. It covers employees only. The self-employed are recorded separately as ‘eWorking freelances’ also known as ‘eLancers’ (see below).

Establishments with >50 employees, outsourcing to eBusinesses

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator shows the percentage of establishments that outsource business services using an electronic link to deliver the results (’eOutsourcing’). The business services covered in the survey included software development, data processing, content generation, R&D and design, sales, customer services, financial services, management and HR functions. An establishment is included in this figure if it outsources at least one of these functions to an external supplier using ICTs. Please note that this indicator covers the demand side, ie those who buy eBusiness services. For a picture of the supply side (ie establishments that sell eServices), please see ‘establishments with >50 employees supplying eServices’. Together, these two indicators can give an idea of whether a region is a net importer or exporter of eServices, or whether it has a strongly networked economy in which local firms both buy from and sell to each other.

Establishments with >50 employees, supplying eServices

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator shows the percentage of establishments that supply outsourced business services using an electronic link (’eService supply’). The business services covered in the survey included software development, data processing, content generation, R&D and design, sales, customer services, financial services, management and HR functions. An establishment is included in this figure if it supplies at least one of these functions to an external customer using ICTs. Please note that this indicator covers the supply side, ie those who sell eBusiness services. For a picture of the demand side (ie establishments that buy eServices), please see ‘establishments with >50 employees outsourcing to eBusinesses’. Together, these two indicators can give an idea of whether a region is a net importer or exporter of eServices, or whether it has a strongly networked economy in which local firms both buyfrom and sell to each other.

See also ‘establishments with >50 employees, using outsourced eServices’.

Establishments with >50 employees, using eWorking freelances

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator shows the percentage of establishments in a region that make use of ‘eLancers’, that is self-employed people who supply eServices using an electronic link, either working from their homes or from other premises. It covers only establishments who outsource to individuals in this way. Those who outsource to companies are covered under ‘establishments with >50 employees, outsourcing to eBusinesses’.

See also ‘establishments with >50 employees, using outsourced eServices’.

Establishments with >50 employees, using eWork

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator sums up all the different kinds of eWork identified in the survey and shows the percentage of establishments in a region practicing any of the following forms: employing home-based eWorkers; employing multilocational eWorkers; outsourcing to eBusinesses; using eWorking freelances; and using remote back offices. For a more detailed breakdown, see the relevant variable.

Establishments with >50 employees, using outsourced eServices

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator combines all forms of eOutsourcing identified in the survey, whether it involves outsourcing to individual ‘eLancers’ or to companies. It thus shows the percentage of establishments in a region which are on the demand side of the eServices market.

A region that scores high on this indicator already has an established demand for these services. It could therefore be a fruitful region in which to search for customers for organisations which supply eServices.

Establishments with >50 employees, using remote back offices

This indicator was produced by the EMERGENCE project as part of its 2000 Europe-wide survey of establishments’ eWork practices. The ‘establishment’ is defined as the physical address of a particular place of employment. It could therefore be an enterprise in its own right or a branch of a larger organisation. Only establishments with 50 or more employees were surveyed, so it does not cover the practices of smaller establishments. Nevertheless, the results of the survey make it possible to compare the levels of eWork as practiced by employers in different European regions.

This indicator shows the percentage of establishments in a region that have employees working in remote back offices (including call centres) in another region. A region that scores high on this indicator might be a good place to look for potential inward investors if you are a region trying to attract this kind of eWork relocation.

Households all aged 65 years and over (% all households)

This indicator gives an indication of the age structure of the local population. A region where this indicator is very high suggests one in which the birth rate is declining or many young people are emigrating. Those left behind in the workforce are likely to have to stretch their wages to support many dependents and/or support the elderly population indirectly through taxes or national insurance contributions. On the other hand, a relatively low score on this indicator suggests a relatively young population with high labour market participation.

Inactive (% all population)

This indicator gives a general idea of economic activity in the workforce. A high inactive population can suggest a latent pool of talent which could be drawn into the labour market under the right conditions.

Less than upper secondary qualifications (% of all population)

This gives an indication of general education levels in the local economy. A high score on this variable suggests that there are significant proportions of the population who lack basic skills and could benefit from training.

Nationals (% of all population)

This indicator gives an idea of labour market mobility. A high proportion of non-nationals (ie a low score on this indicator) suggests that the region attracts above-average immigration, either permanent or temporary. As well as giving an indirect indication of dynamism in the local economy, this also suggests that the region may well have a multilingual workforce, a feature which could render it attractive to employers seeking a location for a call centre, for instance.

See also ‘Non-EU nationals (% of all population)’.

Non-EU nationals (% of all population)

See also ‘Nationals (% of all population) and ‘other EU nationals (% of all population)’.

This indicator gives an indication of migration to a region from outside the EU. Whilst this is often seen as a symptom of social problems and unrest, it can also be a positive feature of a regional economy: it shows that the region is economically attractive. It suggests the presence of young and determined people prepared to work hard, perhaps for rather lower wages than EU nationals will accept; and in some cases it may also indicate the possession of specialist skills, including language skills.

Number in ITCE occupations

This indicator shows the number of people in employment in the region in occupations relating to the use of information and communications technologies. These occupations are defined according to the ISCO international scheme for classifying occupations and comprise ISCO classifications 213 (‘computer professionals’), 313 (‘computer associate professionals’) and 314 (‘optical and electronic equipment operators’). This figure thus gives a good idea of the number of people in a region who have IT skills. It can be compared with ‘Employment in IT sector (NACE 30 + NACE 72)’ which gives the number of people employed in the IT sectors. Please note that the two indicators are not identical. Some of the people in ICTE occupations may work in other sectors; whilst some of the people who are employed in IT sectors may not be IT specialists.

See also ‘those in ITCE occupations as a percentage of all employed’.

Number of households

This indicator gives a useful general idea of the relative size of populations in different regions.

Other EU nationals (% of all population)

This indicator can be compared with ‘Nationals (% of all population) and ‘non- EU nationals (% of all population)’. It gives an indication of labour market mobility, in particular the attractiveness of a region as a destination for migrants from other EU countries. A high score on this variable suggests that a region contains a diverse pool of talent, including linguistic talent, and would probably constitute an attractive destination for forms of eWork (such as Pan-European call centres) that can take advantage of such diversity in the workforce.

Population aged 0-14 (% of all population)

This self-explanatory variable gives an indication of the age structure of the population. A high score suggests a growing population and a workforce that will be expanding rapidly in years to come.

Population aged 15-64 (% of all population)

Another self-explanatory variable, this variable gives an indication of the age structure of the population, in particular giving the size of the population of working age.

Population aged 65 and above (% of all population)

As its name suggests, this indicator shows the proportion of the population over retirement age.

See also ‘households all aged 65 years and over (% all households)’ if the proportion of the population aged 65 and above is high whilst the proportion of households in which all are aged 65 and over is relatively low this suggests that a lot of elderly people are living in the same households as their children. This in turn has implications for the caring roles of the other adults in the households and may affect other variables, such as the ability of other adult household members to work full-time outside the home.

Single person households (% all households)

This is another indicator that gives a general indication of the population structure.

Third level education (% all population)

This indicator gives a general indication of education levels in a region. A high score on this variable suggests above-average education levels. A low score suggests that there may be a need for education and training initiatives to avoid social exclusion.

See also ‘Less than upper secondary qualifications (% of all population)’.

Those in ITCE occupations as a percentage of all employed

This is an alternative way of presenting the information which is presented above as ‘Numbers in ITCE occupations’. It gives a numerical indication of the pool of talent in a region with IT skills. In a region with a large population, this figure can be high in absolute terms even when it is low in percentage terms. It is therefore worth comparing both figures when looking at how different regions compare.

See also ‘Employment in IT sector (NACE 30 + NACE 72)’, which gives the number of people employed in the IT sectors, as opposed to occupations.

Total population

It can be useful to know the size of the total population in a region, not just for descriptive purposes but in order to calculate other variables in relation to the total population size. In a sparsely populated region, a number that looks rather unimpressive on its own might nevertheless look high when it is expressed per capita (per head of the population). Conversely, figures that look very high in isolation might appear rather low when they are spread across a very large population.

Unemployed (% all population)

Unemployment figures fluctuate a great deal over time, partly in response to changes in the economic cycle. It is always best to get the most recent figures you can find. Unfortunately we do not have the resources to update this database regularly so the figures here, which are from 1999, are presented for indicative purposes only.

Upper secondary (% all population)

This indicator should be compared with ‘Less than upper secondary qualifications (% of all population)’ and ‘Third level education (% all population)’ to gain a complete educational profile of the regional population.