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Size of the ICT sector (value added)
by Member States

 

ICT sector Value Added (VA) in the EU amounted to € 470 billion in 2009. This represented a share of 4.0% of EU GDP, a share that has remained stable over the last few years.

From the individual countries perspective in 2009, the share of ICT sectors ranged from 6.4% of total VA for Ireland down to a 3.0% for Cyprus (see the figure below). Ireland took the leading position from Finland whose ICT sectors’ share in VA dropped from 6.9% in 2008 to 5.3% in 2009. In 2009, Luxemburg came next with a share more than 1 percentage point lower (5.3%). Five other countries had shares above 5% (Hungary, Finland, Malta, Sweden and Estonia) and eleven countries had shares below the EU level (4%).  It is noticeable that while eight of the twelve Member States that joined the EU most recently ("newer Member States") have ratios of ICT VA in GDP above the EU level, seven of the fifteen older Member States have ratios that are below the EU level.

In almost all countries the share of ICT sector VA in GDP remained fairly stable from 2008 to 2009. However, some exceptions should be highlighted. The most noticeable one was the sharp drop experienced by the ICT sectors in Finland (mentioned already above). In Malta, the ICT industries’ VA also fell in this period by almost 1 percentage point [1]. On the other hand, Ireland, Estonia, Latvia, Denmark, Lithuania and Poland experienced moderate increases between 2008 and 2009. Here, however, it is necessary to stress that these drops and increases are relative to GDP. In some of these countries, it may be that the change in the ratio ICT VA/GDP was due to a change in GDP rather than in ICT VA. Nevertheless, almost all EU Member States (except Denmark and Greece) also experienced drops in the nominal values of ICT VA [2].

[1] Due to measurement problems in this country, caution is recommended when interpreting its results.

[2] 2009 data for Greece were estimated due to lack of available official data. Figures for Greece should therefore be interpreted with caution.

 

Share of ICT VA in GDP by Member State (2008-2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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At the EU level, ICT Services contributed by far the largest share of ICT VA (91.9% in 2009), while ICT Manufacturing VA contributed only 8.1%.

The figure below shows the distribution VA shares for ICT Manufacturing and ICT Services by country in 2009. The three most ICT manufacturing-oriented countries in the EU are Ireland (its ICT Manufacturing industries produce 36.1% of total ICT VA), Finland (30.4%) and Hungary (26.6%). Other countries with ICT Manufacturing sectors that produce relatively high percentages of ICT VA were Sweden (17.3%), Slovakia (16.5%), Malta (16.0%) and Poland (15.1%).

Clearly, in terms of VA, the ICT sector of every EU Member State is dominated by ICT Services. In 2009, the ICT Services sectors of nine countries produced over 95% of total ICT sector VA: Cyprus (99.2%), Greece (99.2%), Bulgaria (98.3%), Luxembourg (98.2%), Netherlands (97.6%), Spain (96.4%), United Kingdom (96.4%), Latvia (96.2%) and France (96.1%).

 

Distribution of VA shares for ICT Manufacturing and ICT Services by Member State (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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The figure below provides a comparison of contributions by Member States to EU ICT VA in 2009. It comes as no surprise that the biggest EU economies contributed the most – France (17.5%), Germany (16.5%), United Kingdom (16.1%), Italy (11.8%) and Spain (7.8%). Together, these five countries produced 70% of the total EU ICT VA. The Netherlands followed with 5.3%. Although, overall, the twelve newer Member States contributed 12.5% to total EU GDP in 2009, their ICT sectors together contributed only 7.6% to EU ICT VA.  In 2009, the six EU economies that are most specialised in ICT (Ireland, Luxembourg, Hungary, Finland, Malta, Sweden - see figure above) produced together only 8.8% of the EU ICT VA, i.e., about the share of Spain.

 

Distribution of ICT VA among Member States (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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